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3. Advance Strategies

The Drop ‘n’ Stop Trade

The Drop ‘n’ Stop Trade is the reverse of the Pop ‘n’ Stop trade. It’s applied when the price breaks below a range, in what is referred to as a bearish breakout.What is the Drop ‘n’ Stop trading strategy?

The Drop ‘n’ Stop takes place when the price breaks below its range, followed by a brief pause with little price action, and then it moves in a clear direction usually downwards. It’s absolutely necessary for traders to act fast, but you can choose to wait for the bearish rejection bar that confirms the signal.

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