DislikedNamasthe Friends, Does anyone use correlation to find out the best pairs to put in the watchlist for both short-term and long term, I always tend to confuse in finding this. If yes, teach me also any suggestions, advice and help much appreciated. TIAIgnored
Other than that I try to look at each pair in isolation. As far as reading which is the best pair to trade, read up on HiddenGap's posts. He does a great job explaining and relies heavily on trends to find trades pairs that are likely to make a strong moves. Also read up with Pres78's posts. A lot of Pres's posts he focuses on entries, but I believe he relies a lot on H/L be broken as signs of a strong move coming. Here is a great post of Pres, which lays out very effectively how to look at PA.
If I had to learn things all over again, I would focus on reading the background. I.E. what did the previous day do? Is the previous day's highest volume bullish? Bearish? Anything happen during the home session of the previous day? On the current day, has price broken out of its home session? Was the breakout in the direction you anticipated?
Yesterday's AJ trade was perfect.
Look at the Friday's highest volume bar. Huge increase in volume, next bar up. Price breaks the hgih of the bar, our background is bullish. Switch to Monday's home session and once again price breaks the high of the home session matching up with the background. IMO you don't need anything else telling you this is a great pair to trade.
Also remember one of the strong points of VSA is that you you know fairly quickly if your trade is right which allows us to use tighter stops. We don't need stop that are 30+ pips. Getting 3:1 RR for a lot of traders here at FF means 100+pip wins. That isn't the case here.
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