Dear fellow traders,
I am a little confused on when to zoom into the 5 min timeframe for a precision entry. I am doing the 2 week exercise as well and I hope you guys can help me clarify my doubts !
Please correct me if I am wrong because this is what I have been doing and my thought process goes like this.
1. Weekly (overall trend)
2. Daily (outlook of trend progression)
3. 4hr (momentum of trend, and whether is it curerntly ranging)
4. 1hr (lookout for momentum breakouts preferrably during overlapping market hours)
5. 5min (zooming in for precision entry to join in with momentum by watching PA)
6. Watch for PA and set BE position when price seem to be moving in intended direction with momentum for quite some time. Also, watch for PA and close my order for a loss if price moves in opposite direction with momentum that can potentially grow into a large loss.
That's the process of how I choose enter with momentum in the trend for low risk entry. Am I right to do it this way?
I have another burning question.
1. Lets say that there is no obvious growing momentum yet from the 1hr timeframe (after going through the processes above)
2. PA in 5min timeframe is following in the intended direction but slowly and there is a lack of momentum in this timeframe as well.
3. Should I avoid trading for now and wait for obvious momentum to break out from the 1hr chart then move in to the 5min chart for entry,
4. Or should I enter a trade (when there is lack of momentum, or rather price is moving sideways and slowly moving in the intended direction but with low volume) even with the small, mini movements?
Another mini question which may sound weird...
Is this the right mindset discipline that I should set onto myself?
"Only enter when 1hr chart shows momentum and move to 5min to enter only when 1hr momentum says so."
"Do not jump to 5min chart without momentum from 1hr timeframe and find an entry with small momentum that may lead to fakeouts and just because you want to trade or you feel that price will continue in this direction"
I am sorry if my questions sound confusing or repetitive, if it is please tell me and I will try to rewrite my question in a clearer manner, thank you so much!
I am a little confused on when to zoom into the 5 min timeframe for a precision entry. I am doing the 2 week exercise as well and I hope you guys can help me clarify my doubts !
Please correct me if I am wrong because this is what I have been doing and my thought process goes like this.
1. Weekly (overall trend)
2. Daily (outlook of trend progression)
3. 4hr (momentum of trend, and whether is it curerntly ranging)
4. 1hr (lookout for momentum breakouts preferrably during overlapping market hours)
5. 5min (zooming in for precision entry to join in with momentum by watching PA)
6. Watch for PA and set BE position when price seem to be moving in intended direction with momentum for quite some time. Also, watch for PA and close my order for a loss if price moves in opposite direction with momentum that can potentially grow into a large loss.
That's the process of how I choose enter with momentum in the trend for low risk entry. Am I right to do it this way?
I have another burning question.
1. Lets say that there is no obvious growing momentum yet from the 1hr timeframe (after going through the processes above)
2. PA in 5min timeframe is following in the intended direction but slowly and there is a lack of momentum in this timeframe as well.
3. Should I avoid trading for now and wait for obvious momentum to break out from the 1hr chart then move in to the 5min chart for entry,
4. Or should I enter a trade (when there is lack of momentum, or rather price is moving sideways and slowly moving in the intended direction but with low volume) even with the small, mini movements?
Another mini question which may sound weird...
Is this the right mindset discipline that I should set onto myself?
"Only enter when 1hr chart shows momentum and move to 5min to enter only when 1hr momentum says so."
"Do not jump to 5min chart without momentum from 1hr timeframe and find an entry with small momentum that may lead to fakeouts and just because you want to trade or you feel that price will continue in this direction"
I am sorry if my questions sound confusing or repetitive, if it is please tell me and I will try to rewrite my question in a clearer manner, thank you so much!