I've put in years of work. I've analyzed thousands of charts. Ive studied for thousands of hours. I've lost tens of thousands of dollars before making it back. I already make consistant profits. I already know what I would do. If you look to the very right of the picture you can see my stop out line just below the C candles as I trade just like Tiddlywinks described with a minimum exit at a scalp. Was just curious how others would play this, and as you can see others actually have already given answers. This is the Technical Analysis sub forum no?
%% Depends on if long or short. All my enrtries/exits are day trades; but most turn into planned positions. swings. One of my favorite entrys is enter about point a on your chart but use weekly candles + have no idea if this helps your daytrading.- it could...…………………………………………………………….I drew a handchart on planned daytrade SDOW,bugsy,; entered about point b on your charts; but I almost lost my profit within a few minutes=market never got to point c on your chart. Summer rally tends to be weakest/qqq still strong;but good brief sqqq move
Note: when the price has already merged a way in direction of a/r, it means that some traders, that have been invested, may get out - which can lead the price to a false breakout.
This is one problem I've experienced at entering at Point C. Many traders scalped from the bottom of the range which exits them right there in the general range from Point A to C. They are scalping out before a breakout at the highest point (Point C) making the breakout at the highest point more difficult with scalpers exiting and bears with limit orders entering at the top of the range. This leaves a ton of sellers to break past in order to breakout of the range.
Yeah it's a probability play. You lose a lot of upside entering Point A but have a higher success rate over the long run. Point B would probably be my last choice to enter. Either I'm going to take the risk for higher payoff at C or higher success at A.
%% Since we don't know the intraday timeframe on your chart; that's why I noted enter off a higher timeframe. Hopefully it has been in a good trend/ so a good trend is like a train. ITS HARD to stop as train, going up or down. Even on a slop chop trend like that pic= amazing how a moving average brings order to it...……………………...……………………………………………………………………………………...
And it is the end of yesterday's RTH. Therefore like I previously said it would be a no go for me. Curious why you would enter, or consider entering, at that time of the day?
I trade Futures markets outside of US hours. That's the beauty of futures markets. You're not beholden to US hours. It may be slower. May get less volatile or volume dried up, but if you know how to trade setups the game doesn't change. It's not for everyone, but I'm a degen and love trading for the skill in and of itself.