Thirdly - like I said, I do follow the pullback carefully by:
1. Identifying the low of each candle (small pink lines)
2. I do look for a break of that previous candle's low - a signal for me to enter.
3. There must be signs of resistance - something like a pinbar with a nice tail upwards or in this case 3 lower highs.
The opposite for a buy trade.
I hope it make sense.
As you can see, I didn't wait for the resistance and my entry was too early. Later there was a nice break of a previous candle's low after the 3 consec lower highs. I exit the trade because somebody entered my office and couldn't follow the trade live.
1. Identifying the low of each candle (small pink lines)
2. I do look for a break of that previous candle's low - a signal for me to enter.
3. There must be signs of resistance - something like a pinbar with a nice tail upwards or in this case 3 lower highs.
The opposite for a buy trade.
I hope it make sense.
As you can see, I didn't wait for the resistance and my entry was too early. Later there was a nice break of a previous candle's low after the 3 consec lower highs. I exit the trade because somebody entered my office and couldn't follow the trade live.
Willem
Forex recipe for success = Patience, discipline & hard work.