hate getting home to find this.... my entry missed by 2 pips and PA reaching my TP
Attached Image (click to enlarge)
Supply and Demand trading with Fibs
- #934
- Jun 20, 2012 5:25pm Jun 20, 2012 5:25pm
- Joined May 2012 | Status: ... | 1,925 Posts
placed 2 long orders on 30 min got stopped out twice.Based on 4hr chart could i have taken a different approach to the 30 min trade or was this just bad luck and execution was ok?If anyone wants to take a crack at this...Thanks
Always easy to trade the lefthand side of the chart
but...
Based on the two timeframes that you've posted it is
the H4 that presents the classic pattern of Rally-Base-Rally
demand. The biggest give away with the M30 pattern between
70 and 80 for me is the long wick. I would never trade a
pattern like that because it looks more like a pullback
into a lower demand level. A small Rally-Base-Drop supply
level also formed just above entry, killing the risk/reward.
But in the context of the prior points, this point becomes
academic
The H4 level that you've identified looks pretty good to me
but the risk/reward is only 1:2. I do take trades like this
but will use a "confirmation" entry. I will allow price to
first enter around 30 percent of the level and then place a
STOP Order (to buy in this case) and wait to be filled if,
as and when price leaves the level. As soon as I see circa
10 - 15 pips I immediately move my stop to breakeven.
Personally I don't use anything less than an H1 chart when
hunting out supply and demand as per the attached image...
Hope this helps.
Hi Bodine,
Always easy to trade the lefthand side of the chart
but...
Based on the two timeframes that you've posted it is
the H4 that presents the classic pattern of Rally-Base-Rally
demand. The biggest give away with the M30 pattern between
70 and 80 for me is the long wick. I would never trade a
pattern like that because it looks more like a pullback
into a lower demand level. A small Rally-Base-Drop supply
level also formed just above entry, killing the risk/reward.
But in the context of the prior points, this point becomes
academic
The...
- #936
- Jun 21, 2012 10:01am Jun 21, 2012 10:01am
Hi Bodine,
Always easy to trade the lefthand side of the chart
but...
Based on the two timeframes that you've posted it is
the H4 that presents the classic pattern of Rally-Base-Rally
demand. The biggest give away with the M30 pattern between
70 and 80 for me is the long wick. I would never trade a
pattern like that because it looks more like a pullback
into a lower demand level. A small Rally-Base-Drop supply
level also formed just above entry, killing the risk/reward.
But in the context of the prior points, this point becomes
academic
The...
Simond how do you manage your trade once you move to break even? Do you wait till it moves another 10 to 15 then move stop another 10 to 15 and so on? Also do you use TF below H1 if so for what purpose.Thanks
- #939
- Edited 4:26pm Jun 21, 2012 4:03pm | Edited 4:26pm
- Joined May 2012 | Status: ... | 1,925 Posts
do you always let price dip 30% into a level for entry or only when the R/R is not the greatest
market conditions vary so much from trade to trade...
I'm currently long the AU and took a buy limit at 40 off of the top of the H4 level.
If you check out the H1 inside the H4 maybe i could have done better by allowing price to first come down to that reversal level at 33 and then entering the market with a stop order...
wish I could answer that one conclusively but i'm afraid i can't because
market conditions vary so much from trade to trade...
I'm currently long the AU and took a buy limit at 40 off of the top of the H4 level.
If you check out the H1 inside the H4 maybe i could have done better by allowing price to first come down to that reversal level at 33 and then entering the market with a stop order...
Do you trust charts for entry under H1 to minimize risk ?