DislikedA little confused about original TMS by big E. Attached is 1H AUDCAD. Around 1 hour ago, the stoch chart went down, which perfectly matched TSI green crossing red with good angle. Also the first red PA appeared. I suppose it is a good entry for short ... 2nd candle entry 1 hour later, the price went up. Stoch line changed/repainted and it is flat now. Looking back, seems the entry 1 hour ago is not a valid one for the repainting of stoch line Updated: adding a new chart of AUDCAD as of now. TDI was repainted and the original crossing nearly disappeared...Ignored
Hi muyir,
In hindsight I can say many things that were wrong with that trade. But we must learn from backtesting without bias and try to see what was happening in realtime without looking forward in our history charts.
First, H1 trading is much more difficult than H4 and D1. To trade H1, we must put more emphasis on Price Action at Support/Resistance PASR trading. The TDI is only to confirm the price momentum what we see in the Price Action.
I made some comments on your post chart. At that time of your entry, it looked good as there was previous resistance seen far to the left and that H1 as setup candle was also valid - there was price momentum, the previous price bar was a bearish engulfing bar but hidden by the APB candles.
But going forward, I suggest when you trade H1, pick a better currency pair and also look at higher timeframe and use that to decide on a day bias for intraday trading. This will help as 'filter' to pick only the higher probability trade setups in the direction of the selected day bias. This also mean we do not trade against our selected day bias and therefore will missed some trade setups which can turn out to be good profitable ones.
Look at the multi-chart below. Since we at at the beginning of a new week, I look at the Weekly and see where the price action is with relation to its 10EMA. Then on the D1, I do the same and look at how close the price action is to its 10EMA.
When the D1 candle is above the 10EMA, I will only look for buy setups and I trade away from the Day Open. Do Not trade into the Day Open especially when there is not much room for take profit. Also look at he D1 candle size, are they trending making hjgher high, higher low or lower high, lower low, or are they sideways no clear HH>HL or LH>LL.
Also, we buy or sell, it is better to buy or sell into "empty space", i.e. there must not be any recent price action above or below. These recent candles ae where buyer and sellers were b=very recently and we should avoid trading into these areas.
Why did you pick AUDCAD?
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett