Was only glancing at charts today due to the public holidays in Europe and the US...just ended up watching NJ and some risk sentiment pairs in the end and got back in NJ with a couple of shorts. I was looking for bigger moves but settled on the certain pips with +1.3R on one position and +1.4R on the other position.
Will explain in detail later the reasons for the trades.
Was only glancing at charts today due to the public holidays in Europe and the US...just ended up watching NJ and some risk sentiment pairs in the end and got back in NJ with a couple of shorts. I was looking for bigger moves but settled on the certain pips with +1.3R on one position and +1.4R on the other position.
Will explain in detail later the reasons for the trades.
Ignored
Okay reasons for getting back into a series of short positions...
1. There was a QM on M1 back at the H1 supply zone - this is bearish price action. I saw it late thus why the late entry.
There had also been a M1 QM on USDx, BUnd had held its important demand zone on the retest at 144s and S&P Futures still had it's converging wedge bearish pattern at H4 supply ie. this was all confluence to the NJ short setup.
2. Price then fell to the first demand zone, but considering the risk sentiment outlook on S&P in particular I was looking for a bigger move down than this so was willing to wait it out and watch price action.
3. Price then compressed into untested supply on M1 and this was the reason for the second short position.
4.Price then fell to the next demand zone and the bottom of the channel that had formed. Again I was looking for a bigger move here so was willing to stick with the trades and watch price action for a bit longer.
Price started to retrace and formed a perfect compression pattern back into the supply that caused the big move down, price was only ever going to fal back down from here back to the demand zone at least so I stuck with the trades.
5. I decided to cut one of the positions as price hit the demand zone (the spread distorts this somewhat).
6. Lastly, price hit the lower demand zone and channel, after watching it for a while to see if it could push down I decided it was unlikely to do so and decided to cut the 2nd position and call it a day.
2. Price then fell to the first demand zone, but considering the risk sentiment outlook on S&P in particular I was looking for a bigger move down than this so was willing to wait it out and watch price action.
3. Price then compressed into untested supply on M1 and this was the reason for the second short position.
Ignored
Hi LJ,
I have a question regarding compression. You mentioned price CP into untested supply on M1, but it looks more like BUFL than CP to me. I took one of your charts here and made some markings...Can u explain further? Perhaps my concept of CP is still not very clear. Thanks
Hi LJ,
I have a question regarding compression. You mentioned price CP into untested supply on M1, but it looks more like BUFL than CP to me. I took one of your charts here and made some markings...Can u explain further? Perhaps my concept of CP is still not very clear. Thanks
Ignored
The area I've marked in the chart below was compression...price compressing as it rises and dipping as it rises (see the wicks below the bars) means demand consumption.
In terms of Flags what is your definition of a Flag?
Below is an example of what I would call a Bull Flag (taken from the free video on my website which describes common price action patterns).
