Disliked{quote} No, i used only DO and the pivot point and support/ resistence "zones". I'm trying to find a suitable trading window now with similar range but with more pullbacks. In the EG case you wanted the price to reach the pivot point before entering a possible short trade? If we know that the price is near its max range can we think about opening a position? or it's better to wait for an important zone?Ignored
However, this will depend on the trading window you end up choosing and other information.
EG pair
The information supplied showed the average trading ranges for the given pair.
Shorting from just under the pivot is fine and would be desirable however in this case it was more important to realize that price would have a very difficult time actually hitting the target. Since its unlikely that this favorable target will bet hit then why wait around hoping?
Move onto another pair(s) and look for better opportunities. Simple as that!
Some reasons are:
1. Distance from current price to pivot was >> 20 day ATW range
2. Volatility was low
3. Bank holiday pending implying that price movement is typically slow and potentially limited in range
4. Combo of all of the above and the fact its a turtle pair suggests price would not hit the pivot
Based on the points above if an entry was made it would have been halfway between the lows and the pivot suggesting additional risk if taken and as time gets closer say a few hours before FF the market activity slows down alot (at least until 30 minutes to an hour out from Frankfurt when PA usually starts to increase and ranges pick up) and PA could have simply remained almost stationary leaving the trade almost isolated. This situation is not ideal and entries should not be made. There are far better opportunities so a trader needs to be aware of these potentially bad entries and look for 'better' setups.
Ideally, entries should be attempted from zones showing multiple confluence (Fib overlay, pivots, S+R, DO line, etc etc)
Not all of these entries will be successful but on average and over a long period of time the results will speak for themselves.
Waiting for an important zone is usually better however, each situation needs to be assessed on its own merits meaning 1 chart setup might be 'better' looking than another chart.
If in doubt simply sit back and watch and wait for an opportunity that jumps out of the chart at you!
You'll know when this happens it will be almost obvious and the more charts you look at the faster you see these opportunities.
This is where the thinking part of the QAM Method comes into play!
The trader has to do this thinking by considering all the facts and all the likely scenarios and then forming an intelligent opinion.
Then decide to take action or to move onto another pair.... always the traders choice.
Masterrmind...........
Master your Mind then Master your Trades