Agree on OB/OS as signs of strength/weakness.. however there are other factors "besides the HTF M15 STO on the floor" when one is looking for a good r/r M5 matrix scalp trade set-up (seems like most here are looking for 20 pips?).. as for divergence, M5 divergence are not reliable & one should be looking at the HTF for "powerful divergence"..
That being said.. a good scalp or trend continuation buy set-up still valid at this price zone..
That being said.. a good scalp or trend continuation buy set-up still valid at this price zone..
DislikedA good example showing that even with the HTF M15 Stox on the floor the price can carry on going in the same direction for many more pips:
.OB/OS Stox on their own aren't a reason to exit a trade (although you should be careful when entering as it's unlikely to be a HPT).
.Continuous OB/OS should first be seen as a sign of strength(OB)/weakness(OS) rather than an immediate hint of trend reversal.
.Waiting for decent PA first (the usual HL or LH) + the powerful divergence is good practice for a TRT (TrendReversalTrade)Ignored