Say price is in an uptrend on a 15 or 30 min chart. If one is trading one particular TF that is in a range if you bump up to a Higher TF it may just be a PB and probably will be. So..an entry long on say a 5 min chart at the bottom of the range gets you in early and set for when price has a BO on the north side of the range on that 5 min chart. However, on the 15 min chart or 30 min you would be entering at the bottom of the PB. The same thing can happen on 1 min chart compared to 5 min charts. Price is moving on both charts but different setups. In addition, if ones entry is at the bottom of a range on 5 min and bottom of pb on 30 min you still have to consider from a tactical standpoint that 70% to 80% of BO’s of ranges fail and price trades right back into the range. So, if one’s entry was long at the bottom of a range on a 5 min chart hoping to be set up for a BO at top of the range (a continuation of trend after pb on a 30 min chart) one has to be ready to exit the long at the top of the range on the 5 min if no forthcoming BO is successful. That is, don’t hang onto it because it is starting to track sideways on the 30 min or at the very min the pb on the larger TF is lengthing. Strategically one is trading the larger context an uptrend but tactically ones is making their entries and exits on a smaller TF.
it is like saying playing 18 holes with just one club..even though it is possible..the results..or the outcome..will probably not be very good even when most who play golf get a full set of clubs..very few make it into the big money game..which of course everyone knows is not achieved overnight by those who made it the biggest problem that most face today..is trading being advertised as easy money..which of course anyone who has tried and lasted long enough to learn a few key "techniques"..knows..that it is far from easy money..it is the exact opposite..hard money!
good question....that is why i said it was an experiment.....i found that it does not make any sense since you have to consider the last few bars if you are scalping
volpri, Thanks for sharing. This very good logic. Are you suggesting that if the trader identifies the trend as long, entering long trades increases a trader odds/possiblities of a win? What I am learning from trading intraday is Be Apart of the Trend of the moment and my odds of winning on a trade is high, and I am not wrong for taking the trade. I am also learning that my entry don't need to be precise, just take the trade when the price is moving in a clear direction that is somewhat obvious. How can I be wrong trading in this fashion?
yes...never average down...a losing position but adding to long positions on PBs is adding to a winning position..it is known as pyramiding and many pros do it