Trader V I think you have understood the concept quite well. But there's a couple of things you need to be on the lookout
1) Risk. Remember, we're looking at charts based on hindsight. It's easy to say "well I buy here and sell there" but in real time, we don't know the outcome. I have a hard and fast rule of entering after the pullback is confirmed because my job is to preserve my capital and minimize risk. I am not saying that your point is not valid. I am really happy someone else can share my views and post charts and everything. It's better to leave some money on the table than get yourself burned in the middle of a correction. Play safe. Don't trust the market.
2) Corrections - based on risk. No one knows if you're heading for a big correction or is just a small hiccup. You can't see that on hindsight. Corrections is like a cracker jack box. Sweet and nasty and the "surprise inside the box" is sloppy. Corrections can fool you into think that the market is reversing.
3) Stop loss - If you're looking to place a trade on a 4 hr charts - place the stop loss at the high/low of the previous daily candle. That way you give your trade enough room to breath and time to mature. Don't place them on the same timeframe you're looking to trade. After that, trail the stop-loss using the low/high of the daily candle (low/high depending on where the trend is) Money management is a universally acclaimed principle and I am not banning it just that it's not enough. You need to preserve your capital, having a high-probable entry and managing your trade away from the fire i.e placing your stops too close.
Fiveshorts Don't pay too much attention on bars/candles/kagi. etc. It doesn't matter. Only pay attention to the price at the close. If you go down to a lower time frame, your job is to look for a price discount. That's it. Every trade must be done at the close...not in a middle of anything. Candles will provide you extra information, yes and as I said before I look at them. But don't let that turn into a bias because they could be deceiving.
Price discount are not necessary for a good strategy. I remember at the beginning of this thread I said that is not necessary to trade off the lower time frame. I remember I said I personally like to buy at discount and sell for profit. Another reason I prefer daily charts is because I get enough information from the market about trends. corrections etc. and the market has a already digested any news, report etc.
Once you have your setup in place, don't be trigger happy. Use the words if then in your trading.
If the market reaches xxxx price, then, I'll be a (buyer/seller) You call the shots. Not the market
I am going to try to illustrate this on charts in a moment Peace
1) Risk. Remember, we're looking at charts based on hindsight. It's easy to say "well I buy here and sell there" but in real time, we don't know the outcome. I have a hard and fast rule of entering after the pullback is confirmed because my job is to preserve my capital and minimize risk. I am not saying that your point is not valid. I am really happy someone else can share my views and post charts and everything. It's better to leave some money on the table than get yourself burned in the middle of a correction. Play safe. Don't trust the market.
2) Corrections - based on risk. No one knows if you're heading for a big correction or is just a small hiccup. You can't see that on hindsight. Corrections is like a cracker jack box. Sweet and nasty and the "surprise inside the box" is sloppy. Corrections can fool you into think that the market is reversing.
3) Stop loss - If you're looking to place a trade on a 4 hr charts - place the stop loss at the high/low of the previous daily candle. That way you give your trade enough room to breath and time to mature. Don't place them on the same timeframe you're looking to trade. After that, trail the stop-loss using the low/high of the daily candle (low/high depending on where the trend is) Money management is a universally acclaimed principle and I am not banning it just that it's not enough. You need to preserve your capital, having a high-probable entry and managing your trade away from the fire i.e placing your stops too close.
Fiveshorts Don't pay too much attention on bars/candles/kagi. etc. It doesn't matter. Only pay attention to the price at the close. If you go down to a lower time frame, your job is to look for a price discount. That's it. Every trade must be done at the close...not in a middle of anything. Candles will provide you extra information, yes and as I said before I look at them. But don't let that turn into a bias because they could be deceiving.
Price discount are not necessary for a good strategy. I remember at the beginning of this thread I said that is not necessary to trade off the lower time frame. I remember I said I personally like to buy at discount and sell for profit. Another reason I prefer daily charts is because I get enough information from the market about trends. corrections etc. and the market has a already digested any news, report etc.
Once you have your setup in place, don't be trigger happy. Use the words if then in your trading.
If the market reaches xxxx price, then, I'll be a (buyer/seller) You call the shots. Not the market
I am going to try to illustrate this on charts in a moment Peace
Peace
