EURUSD buy idea- The Last Kiss Trade

Trading Discussion
1

The last-kiss trade is a nice way to trade high-probability breakout trades.
Here are the steps for the last-kiss trade:

-Wait for the price to consolidate in a box between two zones.
-The box should have at least two touches on both zones.
-Wait for the price to break beyond one of the zones.
-Once the price returns back to the consolidation box, wait for the market to print a last-kiss candlestick on the edge of the box.
-For sell trades, a sell stop is placed below the low of the last-kiss candlestick, and for buy trades, a buy stop is placed above the high of the
last-kiss candlestick.
-Emergency stop loss is placed in the midpoint of the consolidation box.
-The profit target is the nearest zone.

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2

Could you expound on this? What does “two touches on both zones” mean?

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3

Kinda late to the party but the box acts as local support and resistance in a range.
At least two touches by either candle close or wick is needed for the upper and lower range.
so 3 touches to range high and one range low doesn’t count for this setup.

This strategy is from the book Naked Forex. I started backtesting it on 1-5-15-30min and 4h charts on eurusd.
Doesn’t work for me but my ranges are a lot tighter so I’ll try to test it again

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4

Very interesting book, I found it really helpful when I first learned.

5

What else did you find helpful? Did you come across any trading system in books you’ve read that worked on forex?

6

I can mention three.

The “box breakout” trades described by Bob Volman in his two books work for me.

They’re actually pretty similar to the “last kiss” method described just above.

I treat them mostly as postcongestion trend resumptions. Occasionally they’re postcongestion reversals but those are rarer and of course riskier.

1-2-3 formations have also always worked for me, with an “R” around 1.0 or a bit less, but not so well with a bigger “R”.

For a simple system with indicators, the old “Camelback Technique” has always worked reliably for me using Joe Ross’s trade management method, also with a low “R” and a high win-rate, provided I avoid high-volume bars and expanding bar-ranges.

For me, the main thing is to avoid fast charts and multiple-indicator systems, and stick mostly to price action. The indicators in the Camelback system are only for directional bias, not for trade entries…

7

This is a nice neat rational pattern.

There is too little attention on continuation patterns - all over the internet it’s all about split-second reversals that get you 500 pips for only 3 pips risk. And blah blah blah…

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8

May I ask why you call it last kiss? :smiley:

9

That’s what the book’s authors (Alex Nekritin and Walter Peters) called it.

It’s an “optimistic” name.

The idea is that the price has hung around a level, departed from it, come back for one last look at it, and decided to go off and not come back for now - hence “last kiss”.

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