DislikedHello Everyone, I have been having a little bit of internal conflict When taking confirmation entries how do we know that price would respect that LTF zone Do you set pending orders or look for candlestick pattern before entering the trade??Ignored
thank you for the question, a very interesting one.
The overall answer to that is that there is no way to know for certain that a larger timeframe level will hold.
Having said that, the confirmation entry is really an entry where the supply and demand trader seeks to identify evidence of what he/she is expecting to happen at a level is starting to do so.
The first instance of that "confirmation" is that there is usually an end to the preceding momentum. For example, if prices were in a downtrend, the first thing that usually happens is that the downside momentum tends to end. We seek to identify that event using the momentum line. That is the first and least reliable signal that change is afoot.
The next thing that usually happens is that the opposing zone is removed. That is a later but more reliable signal of change. It also often gives us the first zone to potentially take advantage of. Unfortunately, sometimes, that zone may be so sloppy in its structure that it may not be wise to take it. But we do note it.
That in a nutshell are the processes the supply and demand looks for in working through taking a confirmation trade
hope it helps
best wishes
Be careful what you think because your thoughts run your life..Solomon
