Disliked{quote} While a few VSA traders will wait to see if the second bar after a test is UP (assuming the previous bar is DOWN), most. VSA traders consider a test confirmed or unconfirmed based solely on the first (i.e. next) bar. Accordingly, there is only 1 bar for confirmation (the one right after the test). Yes, the test and the confirmation bar are 2 bars, but one bar is the result of the other. If you study enough charts, you might observe that many. many times the confirmation bar is very shallow (it does not move too far away from the test). This...Ignored
Though points are being made about break of test and number of options later, while reading these apparently plain, straightforward but hard to consistently follow points i thought i could relate my thought process with it:
1. if the risk is within your risk parameters, take the trade anyway.
a. https://www.forexfactory.com/thread/...2#post13755432
b. https://www.forexfactory.com/thread/...2#post13757182
c. https://www.forexfactory.com/thread/...8#post13761048
d. https://www.forexfactory.com/thread/...6#post13759376
e. https://www.forexfactory.com/thread/...6#post13760656
I took these trades after confirmation of test (on same or lower TF) because risk was within my parameters as stated in these posts as well. sometimes all things were not aligned. for example:
(1a) there was test confirmed in immediate background so entered above the most recent test in rising market
(1b) test was confirmed on M15
(1c) didn't wait for confirmation; but took that fact into account and went in with smaller position
(1d) took the trade after confirmation of test
(1e) there was SOS but no confirmation on M15, M30 so i stayed away from taking the trade and so realized capital was preserved.
2. wait for another Test/confirmation setup to occur. This may take a while, but the Market is always testing, so another opportunity should present itself.
a. (1a) & (1d)
b. https://www.forexfactory.com/thread/...8#post13761048
(2a) typical examples of market giving another opportunity; (1a) second test at bar 5 after first test at bar 3; (1d) technically the downbar at 2 was good enough to highlight the strength in line with background but market presented another opportunity at bar 3 (test)
(2b) here it shows the importance of wait for confirmation. if i would have waited for one more bar or have kept my sell stop below the potential UT ND at 3, things would have been different but here i recall the point 1 stating that if you are staying within your risk parameters, take the trade anyway.
3. move on to another Market.
4. (this should be done regardless of which of the above is done) Recognize that you will not catch every move the Market makes. You have to be okay with the fact that you will miss trades. In this case, take solace in the fact that your read of the Market was correct, and believe that your ability to read the Market will serve you well.
this point has made a huge impact in my trading psychology and has helped me in execution of my plan. i'll mention (1c) here as it looked like lack of participation which turned out as a real deal just 1 bar after entry bar.
This activity of self-review to see where i stand has really served as positive reinforcement for me. hope it add some value to this thread as well.
7
