Understanding price action

Discussion in 'Technical Analysis' started by Erin, Apr 23, 2020.

  1. themickey

    themickey

    index(3).jpg
    Bed time story
     
    #11     Apr 24, 2020
  2. volpri

    volpri

    #12     Apr 24, 2020
    themickey likes this.
  3. maxinger

    maxinger

    it is a side way, non trending, non directional market.

    I'd avoid such market even if I have nothing else to trade.
     
    Last edited: Apr 24, 2020
    #13     Apr 24, 2020
  4. .sigma

    .sigma

    Hey Erin, nic3 charts, but is all of this hindsight bias? Or are you executing these in real-time and analyzing the trade afterwards?
     
    #14     Apr 24, 2020
    Sekiyo likes this.
  5. Erin

    Erin Guest

    I understand hidden gaps do exist. Ill use the most recent example we saw in the charts this week, Ill also temper it with using hidden gaps with caution in my experience - if there is any price action behind the gap it will not hold as well as a simple crossing below the opposing orders.
     
    #15     Apr 24, 2020
  6. Erin

    Erin Guest

     
    #16     Apr 24, 2020
  7. themickey

    themickey

    index(4).jpg
     
    #17     Apr 24, 2020
    .sigma likes this.
  8. Erin

    Erin Guest

    UCad retraced roughly 20 pips into a level it created when it advanced - same idea - our sell orders were over layed with buy orders to be transparent Ill put this chart example follow through up as well
     
    #18     Apr 24, 2020
  9. maxinger

    maxinger


    you didn't mention about your reward : risk ratio.
    It should be at least 2: 1, and success rate say 60%.

    I think you are using RR ratio of 1:1.
    if that is the case, your success rate better be > 75%.
     
    #19     Apr 24, 2020
  10. Erin

    Erin Guest

    Well it is about understanding how price action develops - I play level to level - and I play the imbalance of orders...Im jumping ahead of myself but we can play orders that are not an imbalance - see how this chart plays out - Ill let you figure out the RR
     
    #20     Apr 24, 2020
    NQurious likes this.