A simple price action approach

Here's what I had drawn for Jun 27 6e 5-minute. I started watching around 3:00 am.

First the purple channel, then after the breakout I drew the steep red up channel. Just before 6:00 price retested the purple upper limit and moved higher. I didn't know what to do. Do I buy because it's a retest of the purple channel, or do I wait for a touch of the lower limit of the red channel? I ended up missing the trade.

Then I drew in the gray up channel as the angle of ascent seemed to be lessening (price not able to make it to the red upper limit).

As price started moving down I drew in the yellow down channels, and the larger-scale red up channel.

My trades were:
1. Long at 7:00. Hammer at 20ema and just below gray lower limit. After this was stopped out I drew in the first yellow down channel.
2. Short at 7:30 in the yellow down channel.
3. Long off the lower red channel at 9:30. (was hesitating because price hadn't touched the line yet, entered in the big green bar as price took out the high 2 bars earlier)

 

Am I doing it right ?

THE Madman

 

Not the dream trade of my life, but still simple profitable price action.

 

Another simple and profitable PA based trade occured.

 

Euro is rich today for textbook price action setups.

 

I see you're using aggressive entries, cornix.

I still have a lot of testing to do before I decide whether I want to wait for "confirmation" or not. But for now I'm focusing on spotting entry/exit locations and nothing more, so that will have to wait. By the way I just had the same trade as you (trade #3).

 

Yeah, my trading philosophy is being very "tight aggressive" (applying a poker analogy here) in the sense, that I try to get in as early as I can with the smallest risk possible (normally, hard stop is never more than 6 ticks and usual losses are even less than that).

#3 was beautiful indeed, textbook channel and price action in relation to it.

 

Perfect

 

So is the correct play there to go long right there, which will (presumably) be a bounce off the lower trendline?

Target profit is upper trendline?

Where is the stop loss?

 

Testing going well this month! Going to incorporate this live with my current method in a few more weeks.

My strengths so far are being able to move stop BE or better fairly quickly and keeping overall risk pretty tight.

Weaknesses that I need to work on are letting profits ride all the way to the other side. Sometimes it really hurts to hold with a lot of profit already there.


Here is a setup I just took on 6a