Fantastic trading, TraderTX! Bear in mind that the pullback/retracement level tends to provide some insight as to the health of the trend. 38% - Yeah Baby! (Momentum) 50% - Yes! (Strong, solid PA) >50% - Hmmm, better watch this closely. You might take some heat. BreakEven + x is the way that I manage this trade. It just took a long while to feel comfortable enough to watch tick values of my DOM scale back before continuing the trend. Another note: the 3rd leg of any trend often times experiences a deeper pullback/retracement before peaking and ultimately reversing. This pullback might go as deep as 62%. Key takeaway - try to always know where you are within Market Structure. It allows you a chance to select the right tool while managing your trades. Take care, Tex
Shakira - I appreciate you continuing to post your P&F charts. Just want to make sure I understand your entry technique. If you're looking to short off of resistance line, you wait until a column of red circles prints (indicating at least a 5 tick pullback from the recent high)? It appears you often get entry prices a tick or two better than that. Are you anticipating the print of the 5 red circles, or are you waiting for the 5 red circles to print, and entering on a bit of a pullback? Thanks. Sandy
Generally those are limited to the failed breakout trade, i.e. price exceeds the previous top or double top near resistance by 1 or 2 tics (stop run) and reverses into the range instead of breaking out. Same story for the bottoms. I try to enter before the change of color. It is not 100% mechanical. It requires practice. Waiting for the mechanical 5 tic reversal is certainly an option, but in lower speed days gives you a lower risk entry.
One trade I did today at resistance. This is a 5 min chart. But I used an entry technique off of a 2min chart . Max
1 long trade this morning: -2.5pts/car What happens when you're 100% right on direction but just a few minutes to early? See attached to find out. Happy Trading, eD