Close.
Here's the process for an M formation:
1) Identify M formation on 15min chart - confirm with higher timeframes.
2) Enter short if price is <25 pips from the M high.
3) Set stop and reverse to trigger on first 15 minute closed candle 5-8 pips above the M high. This prevents me from being faked out on a spike above the high 95% of the time.
4) Set limit and wait for confirmation of position.
There are a couple of considerations for setting a stop and reverse - if the reverse position will not yield enough pips to cover a loss before stalling at a resistor then it requires babysitting for the duration of the trade.
This is a super calm way of trading. It's virtually a no-lose position. I know if I'm right about my entry then I can walk away and forget about it. If I'm wrong then the stop and reverse has me covered.
But for the most part I can set it and forget it. This morning I put on my EURUSD short, babysat it for 90mins, and went to the gym and did yoga and cardio for 2 hours, came back and the position was closed in profit. Right now I am short the GBPAUD and I'll be going to bed in about 1/2 hour and actually sleeping.
LAFF
Here's the process for an M formation:
1) Identify M formation on 15min chart - confirm with higher timeframes.
2) Enter short if price is <25 pips from the M high.
3) Set stop and reverse to trigger on first 15 minute closed candle 5-8 pips above the M high. This prevents me from being faked out on a spike above the high 95% of the time.
4) Set limit and wait for confirmation of position.
There are a couple of considerations for setting a stop and reverse - if the reverse position will not yield enough pips to cover a loss before stalling at a resistor then it requires babysitting for the duration of the trade.
This is a super calm way of trading. It's virtually a no-lose position. I know if I'm right about my entry then I can walk away and forget about it. If I'm wrong then the stop and reverse has me covered.
But for the most part I can set it and forget it. This morning I put on my EURUSD short, babysat it for 90mins, and went to the gym and did yoga and cardio for 2 hours, came back and the position was closed in profit. Right now I am short the GBPAUD and I'll be going to bed in about 1/2 hour and actually sleeping.
LAFF
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