P3 setup in Primary Trend
P3 setup in Primary Trend
In this article, we are going to introduce the P3 entry setup. We suggest that before reading this article, you should read the article “The Concept of Trend Trading” in order to have a better understanding of the concepts of this article and trading setups.
P3 setup in Primary Trend
The entry setup of the P3 is a very attractive setup. This setup has a smaller stop loss compared to other setups, so it is affordable and suitable for low capital.
This setup is actually an entry from a price correction, but its condition is the existence of a hammer candle. You need a green hammer candle to enter in uptrends and a red hammer candle in downtrends. This condition is one of the requirements of this trading setup, and for this reason, you will probably see this setup less often in the market.
Now we want to go into the details of this setup and entry point. To enter the trade with this setup, you have to wait for the close of the hammer candle. Immediately after closing the candle, you can enter the transaction. The stop loss of this trade will be placed under the same candle with a small gap. The first exit point will also be the P2 line. In the picture below, you can see a login setup from P3.
In the above image, you can also use the P2 setup and enter the transaction. The P2 setup has already been introduced to you and you can watch its video from Zandtraders website or YouTube channel.
To use the P2 setup, after the price crosses this level and returns to it, we enter the trade and the stop loss is placed behind the P3 price. Naturally, the stop loss of this setup will be higher than the P3 setup with the hammer candle.
In the picture below, you can see the details of entry from P2.
In the end, we remind you again that we use the topic of trend trading only to understand the trend.