It just feel like there's a million ways to skin a cat and all are correct but only a couple are likely to match your personality. There's too many options and I keep swapping between them. D1 hi and lo, fibs, pivots, 50sma etc. The only thing I'm certain is that price action is for me and scalping it on the London and US opens are the times I want to trade, which is a positive. But how to divide it up into manageable chunks to trade between (horizontally / S&R) is the chestnut. TBH I mentioned this yesterday, I'm stuck because I'm between methods (reading Brooks) So I'm going to persist with the book (Read chapter on trend lines and trend channels, still to write up notes but very enlightening).
Trades I would have liked to take...
A. Short off stretch into prior high
B. Long off stretch into 21EMA ( think because this was a 1st PB from a higher high I should have avoided this according to Brooks and waited for the second PB D to enter)
C. Short off stretch into prior high
D. Long off stretch into 21EMA
E. Long off Continuation inside bar high at the top of large up bar.
F. Short 2nd small bar at bottom of large down bar because 1st didn't trigger.
G. Short 2nd small bar at bottom of large down bar because 1st didn't trigger.
Trades I would have liked to take...
A. Short off stretch into prior high
B. Long off stretch into 21EMA ( think because this was a 1st PB from a higher high I should have avoided this according to Brooks and waited for the second PB D to enter)
C. Short off stretch into prior high
D. Long off stretch into 21EMA
E. Long off Continuation inside bar high at the top of large up bar.
F. Short 2nd small bar at bottom of large down bar because 1st didn't trigger.
G. Short 2nd small bar at bottom of large down bar because 1st didn't trigger.
One of my favorite Nine Trans quotes is something to the effect of "if you trade good signal bars, with the trend, you will make money most days". What you need to define for yourself is: a) what is a good signal bar, and b) what is a trend?
ReplyDeletea) signal bar is one of average size, with a strong close in the direction of the trade (I have made a basic MT4 indicator you could try if you'd like to point those out). Average size is easy to see with the eye (no news related bars). Strong close is with little or no wick on the trade direction side of the bar.
b) HHs or LLs in conjunction with a sloping 20 EMA is what I would say is the simplest. Or use the last trendline you can draw. If there is no trend, simply don't trade, or trade fBO (failed breakouts) at horizontal support/resistance.
Just some thoughts -
Brilliant, just read about what you mentioned and much more (hence the confusion). This simplifies things massively. Thank you, very kind of you to take the time. MT 4 indicator sounds brilliant,( is it like those diamonds I see on APTP?) where can I get my hands on it?
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