Dow Jones during the asian session,that was a great scalping setup.
Hang Seng Index might also form a good short setup soon,must watch the waves and spikes,and find a good top if it happens of course.
Something above 29550 pts could construct nice waves and zones to short on the HSI, only to scalp short term.
One might argue why don't we buy if we are expecting new highs and waiting to short, to simply put it is against the markets nature in my view,one must sell the highs and buy the lows, we do not fight to create a road for the market, we only enter at the profit taking points. So when we enter the trade,it should be the markets profit taking point,that is the reason we don't wanna buy heavy random dips for example,it can work but for how long? Shorting the dip rebound is a lot easier to me. We must let the markets wave and show us the stopping point.
Also a note on not traded XAUUSD action and how it would have been traded if X scenario happened, pic is attached below. And the explanation is on the screen.
The biggest benefit of this approach is simply the markets will always wave,and we hide our position in one those waves and it was unpredictable.
If something is unpredictable,and not traded by the most,or it is a thinking zone if you will,it will wave up and down. Thus we will have enough time and reach a point to exit with profits.
Because as you can see it is really contradictory to what most traders do,instead of trying to find the direction we simply setup an ambush to the markets and let it do it's work. Also the R:R is around 5:1+ that means in order to get stopped out the markets should spike even further, or spike suddenly before we collect out or profits,which is unlikely in most of the scenarios since we will be exiting quickly and we are in one those market waves hiding in it and also decided to build positions after the spikes or breakouts.
When I'm satisfied,I'll stop.
That's it from me today,a quick observation of the market is always good and fun,best wishes.
Hang Seng Index might also form a good short setup soon,must watch the waves and spikes,and find a good top if it happens of course.
Something above 29550 pts could construct nice waves and zones to short on the HSI, only to scalp short term.
One might argue why don't we buy if we are expecting new highs and waiting to short, to simply put it is against the markets nature in my view,one must sell the highs and buy the lows, we do not fight to create a road for the market, we only enter at the profit taking points. So when we enter the trade,it should be the markets profit taking point,that is the reason we don't wanna buy heavy random dips for example,it can work but for how long? Shorting the dip rebound is a lot easier to me. We must let the markets wave and show us the stopping point.
Also a note on not traded XAUUSD action and how it would have been traded if X scenario happened, pic is attached below. And the explanation is on the screen.
The biggest benefit of this approach is simply the markets will always wave,and we hide our position in one those waves and it was unpredictable.
If something is unpredictable,and not traded by the most,or it is a thinking zone if you will,it will wave up and down. Thus we will have enough time and reach a point to exit with profits.
Because as you can see it is really contradictory to what most traders do,instead of trying to find the direction we simply setup an ambush to the markets and let it do it's work. Also the R:R is around 5:1+ that means in order to get stopped out the markets should spike even further, or spike suddenly before we collect out or profits,which is unlikely in most of the scenarios since we will be exiting quickly and we are in one those market waves hiding in it and also decided to build positions after the spikes or breakouts.
When I'm satisfied,I'll stop.
That's it from me today,a quick observation of the market is always good and fun,best wishes.
Attached Image(s) (click to enlarge)
