DislikedOk this is the way I use trigger lines and tests... it may not be right and it may not be in agreement with how others use them but it works for me.Ignored
Chart 1...
OK now the trigger I have marked is at the most recent swing high and coincidentally enough it is also the high of the highest volume bar in that area... not on the chart but in that area. Was there an entry off another higher volume trigger to the left? Maybe but what if you missed it? Does that mean you have missed the whole move? Nope... We never go straight up (typically) and many retraces / swings give second, third, fourth chance entries... once just has to be aware of the ADR so we aren't jumping into a long after we have already moved up 180 pips...
1. Trigger level at most recent swing high 6017
2. Green line 1 is the highest volume bar making the swing high
3. Green line 2, first entry off the trigger, lower volume test
4. Red line 1 we approached the trigger with a relatively wide (in relation) spread bar on lower volume that the bar that made the trigger and closed guess where... right on the trigger 6017. HMM are SM making it this easy?
5. Red line 2 well I see buying in this higher volume upbar off the trigger making an nice 2 bar reversal... might be risky entry but you could have entry option 2 at the high of this bar off the same trigger
6. Red line 3... NS, need I say more... third entry option
So that's 3 possible entries off 1 trigger level. In fact that trigger level has proven itself so much I would place my SL at the trigger level + spread... nice and tight.
This is a classic example of how price will often move away some and then come back to re-test triggers...
But what if I missed all 3?
Well let's look at chart 2
We didn't have to go far to find some more entry options... in fact the move away before re-testing the 6017 trigger has created a new swing high to watch.
Once again the highest volume bar in the swing also made the high of the swing (notice a pattern here) and gives us another trigger at the bars high.
1. Trigger level at new swing high 6041
2. Green line is the bar that makes the highest high in this swing and is also the highest volume bar at this high
3. Red line is a lower volume test (lower than the trigger bar) which closed well off it's low and the entry was 2 bars later
So now we have had 4 entries long within 24 pips (between triggers) off two swing highs... we didn't get in at the bottom but hey who cares we have had 4 safe entries with lots of ADR ahead of us.
Oh man I slept too late and missed the whole move including the 4 entries off the swings... but there is some ADR left, can I still get in... is it safe to get in now... ah man I missed the move.
On to chart 3...
Well well what do we have here... another swing high created by the move away from 6041 trigger prior to the retrace and test entry # 4...
Ok this is getting creepy the swing high was made by the highest volume bar again in the recent area... shall we test this new trigger at 6075 (this one was close of bar) no way it's gonna happen 3 times in a row.
1. Red line 1, highest volume bar creating the swing high
2. Low volume down bar closing above the trigger
3. increased volume upbar making this a 2 bar reversal and we could even call it a test over 2 bars that passed... Entry on the break of this bar and a tight SL just below the trigger line again... another option if you are worried above using too tight of SL would be the most recent swing low.
Well that's enough of a sample... there we have 3 trigger lines giving 5 entries all within 58 pips (trigger spacing) all of which had lots of room in the ADR to pick up nice pips off low risk, tight SL trades and guess what we did NOT pick the bottom.
Now every day doesn't work out this nicely and you won't get as many set-ups to get in... but it is a nice example of how I use swing high triggers in addition to the normal highest volume trigger set-ups that we see quite often on here. It is also a great example of how many times SM moves price toward their target while re-testing where they have already been... plus everytime they move price down on those retraces they suck in so many retail traders to going short giving their buys that much more power as they laugh and blow through all the stops from the recently added shorts (well from all those who don't see what they are doing).
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Today's zone = Tomorrow's opportunity!
