I have one problem, i trade corrective waves and not impulsive waves - i do not go with a trend i scalp against the trend. I can easily spot the trend with naked eye (don't need moving averages or such things) but somehow i cannot trade with it, i think that's something psychological.
It's probably because of this - i tend to trade high probability trades with low risk entry, i mostly use 20 pips stoploss so my entry must be precise, when going against the trend i can easily spot when price is gonna retrace (in 80% cases) thanks to S&R levels, i only use H4 S/R levels because bigger the timeframe better reilability so it gives me more confidence, but i enter on M1. I draw the S/R line and buy/sell on it (against the trend ofcourse
) and that is H4 line so price always retrace atleast 10, 20, 40 or more pips or gives me chance to exit on BE, and i'm fine with that. But i wanna trade the trends, the problem is entry, entry based on H4 S/R line is not to common (especially when trend is just developing) so entry must be made on lower TF like on m15 S/R lines in which i don't have that much confidence i don't consider them high probability. Fibo would be ok for entry to measure retracement but somethimes distance between fibo levels is more than 20, 30 pips and that exceeds my stop loss.
So, does anybody else have a problem trade with trend? On what do you base your (high probability + low risk) entry and what SL do you use?
It's probably because of this - i tend to trade high probability trades with low risk entry, i mostly use 20 pips stoploss so my entry must be precise, when going against the trend i can easily spot when price is gonna retrace (in 80% cases) thanks to S&R levels, i only use H4 S/R levels because bigger the timeframe better reilability so it gives me more confidence, but i enter on M1. I draw the S/R line and buy/sell on it (against the trend ofcourse
) and that is H4 line so price always retrace atleast 10, 20, 40 or more pips or gives me chance to exit on BE, and i'm fine with that. But i wanna trade the trends, the problem is entry, entry based on H4 S/R line is not to common (especially when trend is just developing) so entry must be made on lower TF like on m15 S/R lines in which i don't have that much confidence i don't consider them high probability. Fibo would be ok for entry to measure retracement but somethimes distance between fibo levels is more than 20, 30 pips and that exceeds my stop loss.So, does anybody else have a problem trade with trend? On what do you base your (high probability + low risk) entry and what SL do you use?
