Hello, I am price action trader practicing sim ES See example attached I normally look for price entry long on break out of resistance and retrace. Vice versa for short. Sometimes I get confused, if i draw demand line supporting the upward as I am waiting for retrace and good price entry. If demand line is broke should i still consider buying the retrace or should I just practicing buying breakout? A bit confused
The problem with price action traders is that they do "hindsight work" in clean price action, then it looks academic, "ok i can do this". Obviously you will find clean action in clean price action, just like you will find good buy signals in uptrends and good short signals in downtrends. However, do the same on erratic action and you will get random results, so you at the mercy of good action, not a trivial pre-requisite. Careful, most fail at this, but very few tell you why.
Breakout or Retrace Two separate an distinctive trades Each with their own characteristics, benefits, and pitfalls Learn each, AND never morph one - into the other RN
Very little safety in day trading for most and what we depend on, there are feel good trades and they usually have greatest risk cause as price going up you getting onboard and well back tested well defined patterns offer least risk of buying as price is dropping. Days of risking one point in ES are few. Buying on breaking of Super Steep upsloping trendline? How much study have you done on big range bars and speed of price? Bigger the range near highs, like over 4 points for that timeframe on one bar, you can expect deeper retracement. Also, notice pivot high earlier at 2054 which at that time was Head & Shoulders to sell in a downtrend, there was no close above 2054 till other leg up, so that tells me the highs were weak at 10:30cdt, plus the reversal bar at highs, you might want to replace that whatever at bottom with volume will show increase of bigger traders piling on for reversal trade sells, be that are it may, entry long be below the lows of huge range bar. And the feel good breakout at 11:00. TaDa
...and more ambiguity to the newbies, seems to be the norm here in ET. Act like you know shit, without saying shit lol
If you are interested in learning a little bit about trading order flow Jigsaw trading has a free course. http://www.jigsawtrading.com/learn-to-trade/free-order-flow-analysis-lessons/ Sorry if my short answer didn't help you. Learn the shit. It's good shit. It will help you stay out of the shit.