I want to discuss implied Pullbacks. Then I want to give some examples on a SIM on how I trade them. So, what is an implied pullback? To answer that we have to first ask what is a PB? In its simplest form in a bull trend or up move a PB is when the low of one bar goes below the low of the previous bar. As in this: A PB is also in its simplest form when in a bear trend or bear move the high of a bar goes above the high of a previous bar. As in this: Then there are complex PBs. When the PB consists of more than one bar as in: a bull trend or bull move: In a bear trend or bear move: You may say what is the big deal? That is the very basic stuff of PA. Any dipstick knows this stuff you might think! My response would be but do said dipsticks know that understanding PBs and knowing how to trade them makes for FOT (frequency of trades)? FOT is a very important aspect of scalping. FOT is what makes scalping render enough profits to make scalping worth the effort. In the first two hours of the day session wedge tops and wedge bottoms are abundant and render many trading opportunities for scalping but PBs are there for the trading all session long. PBs are generally considered to be continuation patterns. They are basically BO's in the opposite direction of an existing trend or existing move. Like any BO's they can be fail and the previous trend resumes, or they can be successful and often become the beginnings of a reversal. However, the important thing for a scalper like me is to learn how to trade them in either scenario. And to determine the likelihood of them failing or being successful. PBs are usually areas of profit taking by those traders who have a paper profit and want to bag it. They also can be institutions trying to make the previous trend fail and reverse it. If the previous trend was bullish then bearish institutions will try to make that bullish trend fail thus causing a PB to form as they push against the bullish trend. Sometimes, probably more often than not, consist of a combination of both things. PBs can be simple one bar PBs or more complex two or more bars. PBs are BOs of a previous trend, usually. Then the PB BO direction converts into a reversal (reversing the previous trend and not just profit taking) thus the PB becomes a successful PB, or it can fail and the previous trend starts back up. PA context is very important to deciding if a PB will be successful (thus creating a reversal) or if it will fail (profit taking and bears fail to reverse the previous trend) and the previous trend continues. For scalping ALL session long there are 1 or 2 bar pullbacks (which most traders consider to be noise thus considered to be not tradeable by these traders) and there are more complex 3 or more bar PBs. The thing is as I as a scalper know these PBs, even the small ones, can more often than not be traded, whether they end up being successful or failing, because in either case the move is usually enough FOR a SCALP. Larger context helps me determine the likelihood of the PB being successful or failing and the likelihood of getting enough of the move in the most likely direction to capture a successful scalp. Again, I see no noise in the markets. I only see movement and it is my job to capture enough of that movement for a decent scalp. Finally, FOT becomes a reality if I as a scalper learn how and know how to trade PBs because they happen ALL session long in any larger context. Thus, understanding PBs is foundational for scalping. Another thing is a complex PB or sideways move that last 20 or more bars of sideways movement becomes a TR. Then TR techniques can be used such as fading tops and bottoms of a TR and other techniques of trading TRs. However, understand that even when a complex PB is forming in a 20-bar sideways move there will most likely several simple PBs in that sideways move that are also tradeable and there will also be IMPLIED PBs which I will discuss in my next post. And once 20 bars are in a PB or sideways move the chance of a BO of that now established TR equal 50% chance of a north BO of the TR and 50% of a BO south. Whys because the previous trend has lost the bulk its influence on price direction. In this post I am just laying the foundation of PBs, simple and complex, successful and failed PBs, and implied PBs. Then as my time permits maybe I can show how I trade them in live some SIM videos and I can get away from all this jostling around about the tariffs in other threads. Implied PBs offer great trading opportunities so I will explain just what an implied PB is in my next post.
You dumb sack of shite. SimtradeMeLike. Grow a sack and trade a real account. You will find out real fast your mentor is full of nonsense.
Good Morning Monobrowtrading, Very good response you provided @Monobrowtrading What does it matter if I, you, or whomever is trading a real account, paper account or SIM account? I do not understand the strong emphasis for ET members knowing if another ET member is trading a real real account, paper account or SIM account? Please tell me why trading a real account, paper account or SIM account is so important to you or why it should be important to me or anyone? I personally do not care if someone is trading a real or SIM account, I just appreciate @volpri or any other trader who provides great trading ideas I can try to make money from. Thank you,
No offense sir, I went live with tiny trade size ($1K per trade), following similar approach in scalping and found it valid: 1. Went live with something similar on 11-25-24. 2. After 43 days of day trading, 41 profitable days, 2 losing days; average profit rate was > 0.15% per day; average win rate = 71%; average number of trades per day was about 10. You can argue that such tiny profit is not worth the effort but profitable with positive expectancy nonetheless. As a new day trader, I appreciate the mentoring and he pointed me in a direction that produced positive results. Whether he himself is a great trader is not as important as his students gtting good results practicing his approach. I am amateur retail, not a professional trader like you making millions trading. I just want to be able to win a Big Mac here and there.
Your mentor blew up a POA-account on here in under a month. First month was a loss >50%. I have the names/PMs. If you're going to claim 41/43 profitable days at a 71% hit rate then back it up here or F off. I'll be happy to post the PMs.