by michael nurok · price flip is a proven technical trading strategy that can be used on its own...

Price Flip Trading Strategy

By Michael Nurok

www.traderselite.com

http://www.traderselite.com/

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www.traderselite.com Price Flip Trading Strategy

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INTRODUCTION

Hi, I'm Michael Nurok and I want to congratulate you on downloading this report on

the strategy that I call, “Price Flip”.

This system came about as a result of requiring a trading strategy to identify potential

reversal highs and lows, in both sideways markets and trending markets. In my early

trading years, I quickly realized that:

“Price moves in a zigzag motion”

Yes folks… there’s no such thing as a straight line in trading and not even the strongest

trends move in the same direction forever.

One of my trading mentors used to joke that in trading, when you’re sitting on

profitable open positions, you need to; “know when to party hard and know when to

leave the party early”.

It’s this mindset and understanding of the way the market operates, that motivated me

to devise a system that would allow me to pick entry points that had a high probability

of success, and just as importantly, provide me with reliable target levels, that offered

me a high probability of hitting the target, without staying in the trade in a diminishing

position.

Price Flip is a price-action system that identifies critical reversal points. The strategy is

based on the core “Head Fake” principle that highlights potential price reversals after

consecutive upward or downward bars, providing strong signs of possible

fatigue/exhaustion in the market.

This system can generate great trade opportunities for you, but only if you stay

disciplined and stick to the rules.

Read the course to the end. Then read it again. Install the template on a demo trading

account and trade the system on the 30 minute, 1 hour, 4 hour and daily time frames,

however it is most widely used on the 1 hour & 4 hour.


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HOW THE MARKET MOVES

Whatever system you are using to trade, accept that the market always moves back on

itself, much like “water finding its own balance”. Another way to think of the market is

like an elastic band that stretches to extremes and on a regular basis, retracts back to

“resting” positions before moving again. Traders call this “a market correction” and it’s

brought about by a number of factors including profit taking, as well as the general

ongoing battle between the bulls and the bears (those that are buying and those that

are selling)

The following image shows that even in an, in this case, upward direction, the price

always moves back down again, in its journey towards higher highs.

Here’s another image in a more conceptual way, that shows how the market moves

down from resistance levels, and moves up from support levels.


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SYSTEM SUMMARY

Price Flip is essentially, a candlestick/bar pattern that identifies critical market reversal

points. It highlights momentum exhaustion levels and the likelihood of the price

changing direction in the immediate or very near future.

Price Flip is a proven technical trading strategy that can be used on its own or combined

with another core strategy.

A Buy/Long Price Flip is a pattern of 2 consecutive down-close bars where the

difference between the low & close of the last bar is greater than the difference of the

low & close of its preceding bar.

A Sell/Short Price Flip is a pattern of 2 consecutive up-close bars where the difference

between the high & close of the last bar is greater than the difference of the high &

close of its preceding bar.

Ideally, you should be looking for reversals at key support and key resistance levels to

ensure the best probability of a successful trade.


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Because the system highlights exhaustion of moves and potential reversals, you should

exercise caution if you’re considering buying into a pair where the previous bar or very

recent bar is an upward bar that shows a big retracement (from the high down to the

close) highlighted by a candlestick wick that is a big percentage of the total length of

the upward bar (from low to high). This formation is suggesting that price was rejected

from the high and has created a temporary resistance level.

Likewise, you should exercise caution if you’re considering a sell, where the previous

bar or very recent bar is a downward bar that shows a big retracement (from the low

up to the close) highlighted by a candlestick wick that is a big percentage of the total

length of the downward bar (from high to low). This formation is suggesting that price

was rejected from the low and has created a temporary support level.

These retracements are signifying temporary but potentially firm levels of support or

resistance. Therefore, you should be careful when buying or selling into a pair if a recent

retracement against your position is present.

Conversely… if you see an upward bar showing a big retracement, then it could signify

that selling into the market could represent a quick and easy scalp of the market as

often these moves are quick with price continuing to fall as a direct reaction of the

upward bar retracement. Likewise, if you identify a very recent downward bar showing

a major retracement to the upside, then it is potentially a good time to buy into the

market.

These moves can be short-lived or they can act as the catalyst of a new, major, big

move in the same direction. Therefore, identifying and being aware of these “Rejection

Formations” is vitally important, no matter what trading system you are using.

The following displays the basic formation for a valid Price Flip to occur;


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BUY RULES

1. There must be at least 2 consecutive downward candles

2. The difference between the low & close of the current candle (bottom wick)

must be greater than the difference of the low & close (bottom wick) of the

preceding candle


must be at least 20% of the total size of the current candle (high to low)

4. Enter the trade at the open of the new candle following the candle that provided

the setup signal

5. Stop Loss is placed a few pips below the low of the signal candle

6. Take Profit is set to at least 1:1 risk-reward ratio *


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* Note also that the Take Profit can be set to 1:2, 1:3, 1:4, 1:5 risk/reward ratio, or higher.

If you are trading for higher risk-rewards ratios however, it is important to trail your

trades with a stop that’s locking in profits at appropriate times.

BUY STEPS

1. There must be at least 2 consecutive downward candles


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must be greater than the difference of the low & close (bottom wick) of the

preceding bar


must be at least 20% of the total size of the current candle (high to low)


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4. Enter the trade at the open of the new candle following the candle that

provided the setup signal

5. Stop Loss is placed a few pips below the low of the signal candle


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6. Take Profit is set to at least 1:1 risk-reward ratio


12

SELL RULES

1. There must be at least 2 consecutive upward candles

2. The difference between the high & close of the current candle (top wick) must

be greater than the difference of the high & close (top wick) of the preceding

candle


be at least 20% of the total size of the current candle (low to high)

4. Enter the trade at the open of the new candle following the candle that provided

the signal setup

5. Stop Loss is placed a few pips above the high of the signal candle



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* Note also that the Take Profit can be set to 1:2, 1:3, 1:4, 1:5 risk-reward ratio, or higher.

If you are trading for higher risk-rewards ratios however, it is important to trail your

trades with a stop that’s locking in profits at appropriate times.

SELL STEPS

1. There must be at least 2 consecutive upward candles


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be greater than the difference of the high & close (top wick) of the preceding

candle


be at least 20% of the total size of the current candle (low to high)


15

4. Enter the trade at the open of the new candle following the candle that

provided the signal setup

5. Stop Loss is placed a few pips above the high of the signal candle


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CONCLUSION

Congratulations on finishing this report on the Price Flip.

You are now on your way to using Price Flip for your trading and identifying excellent

entry points at highly probably times of market reversal.

Although this system can get you involved in trades that can experience significant

moves, the system is primarily designed as a scalping system and therefore, your

reward to risk should be set at 1:1. If you do choose to go for bigger moves, make sure

you tighten your stops once you hit your 1:1 target. Quite often, your trades will

generate a much bigger risk-reward ratio so you can let your trade run and lock-in

profits throughout its lifecycle to benefit from 1:2, 1:3, 1:5 or even higher returns.

Naturally, watch out for contrary Price Flip setups against your position. You can get

into a new trade using the same strategy and trade market reversals all week long.

I sincerely enjoy feedback and helping traders succeed so please contact me with any

questions you have or just to tell me how you’re going.

Remember, no one ever wins all the time, regardless of what system is being used and

you should consider losses being like an overhead of your trading activities. Give

trading the time, energy and respect it deserves if you want to succeed as a trader in

the long term and I look forward to seeing you in the members area and on social

media as we continue to trade the markets.

Finally, do your best to stick to the rules and try to take the best looking setups at

extremes of support or resistance… and try to be consistent with the trades you take.

Good trading & live well,

by michael nurok · price flip is a proven technical trading strategy that can be used on its own...

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