well RSX was in oversold mode and price approached a demand area (circled spot) , u actually wait for at least 1-2 hourly candles closing above the lowest point of the demand area and search for some confirmation of reversal.
guys, never buy blindly at demand and sell at supply levels, u need additional patterns etc. to increase the edge and the profits of this system.
anyway if we'd enter here as low as possible with 1:2 r:r we would have a triggered stop and a losing trade but in the long run we are profitable with it.
This was a huge run today on the aussie...
Well anyway we always need to ask the following questions before we enter a trade:
Where do we enter? Why will we enter at this certain point? Where do we wanna close our position with a) profit (targets) or b) a loss (stops) ?
Well i would've had 3 possible levels to enter long at the demand, see the 3 black horizontal lines( low,middle and top of previous range. stops below the demand area. But ! we didnt have any sign of a reversal yet, so we dont enter this trade.
Dont see demands and supply areas as walls, take em as obstacles that stop price and push him back for some time before another run.
Supplys and demands are there to get broken
hope this i clear, if not....please keep asking !
also see the h4 explanation regarding Bullzeyes and Jeremys AUDUSD trades, ill go into more detail then.
Hero calls followed by margin calls...