So more practice this morning followed by some reading of Al Brooks. I was questioning whether I should continue to blog this bit of my trading, as my entries have been pretty monotonous recently but I realized that first and foremost this is my trade journal (not a blog) and keeping a record of my progress is most important.
Today 2 clear DWTL and an UWTC could be drawn but once the LON session started it was particularly hard to spot the legs of the UWTC. This made me realise how important it is to keep my eyes on the big picture. Despite the Legs being difficult to see, what was clear is that price was clearly making higher lows so a bull was in place. IDing all the H/L 1,2,3,4 helps with this as not only are you spotting the legs you are focusing on the turns (his/los)
1 + 3. were a "W" bottom. Both bars were out of my session (i wasn't even awake), so although trades took place between them I wouldn't have taken any.
The move coming down to bar 2, although difficult to see was a 2 legged move, 2 bear trend bars separated by a bull doji.
The following bars could all be renamed slightly differently but they are still H/L setups regardless of their number. The most important thing here is that after the "W" and DWTL break, price is making higher lows (3,5 and 7) so the market is in a bull trend..
3. was an H1 and marked the 1st leg down
4. was an L2 but after a"W" and DWTL break and 21EMA break so the bias was on getting long.
5. was a rather imperfect H2 as the signal bar was not the low but marked the end of the 2nd leg down
6. was an L1 but again bias is long so not traded.
7. is a much better H2 and should have been traded. (aprrox 1: 1.5 TSL)
8. is an L2 and marks the 3rd leg up (1st 3-4, 2nd 5-6, 3rd 7-8) but is the first test high of the TC and is a counter trend trade so should be avoided.
9. is and H3 but is rather OE so again should be avoided
10. is an L3 that forms a "M" at prior R, is a second test of the top of the TC, and meets a LT DWTL making it an ideal short (approx 1: 7 TSL)
Today 2 clear DWTL and an UWTC could be drawn but once the LON session started it was particularly hard to spot the legs of the UWTC. This made me realise how important it is to keep my eyes on the big picture. Despite the Legs being difficult to see, what was clear is that price was clearly making higher lows so a bull was in place. IDing all the H/L 1,2,3,4 helps with this as not only are you spotting the legs you are focusing on the turns (his/los)
1 + 3. were a "W" bottom. Both bars were out of my session (i wasn't even awake), so although trades took place between them I wouldn't have taken any.
The move coming down to bar 2, although difficult to see was a 2 legged move, 2 bear trend bars separated by a bull doji.
The following bars could all be renamed slightly differently but they are still H/L setups regardless of their number. The most important thing here is that after the "W" and DWTL break, price is making higher lows (3,5 and 7) so the market is in a bull trend..
3. was an H1 and marked the 1st leg down
4. was an L2 but after a"W" and DWTL break and 21EMA break so the bias was on getting long.
5. was a rather imperfect H2 as the signal bar was not the low but marked the end of the 2nd leg down
6. was an L1 but again bias is long so not traded.
7. is a much better H2 and should have been traded. (aprrox 1: 1.5 TSL)
8. is an L2 and marks the 3rd leg up (1st 3-4, 2nd 5-6, 3rd 7-8) but is the first test high of the TC and is a counter trend trade so should be avoided.
9. is and H3 but is rather OE so again should be avoided
10. is an L3 that forms a "M" at prior R, is a second test of the top of the TC, and meets a LT DWTL making it an ideal short (approx 1: 7 TSL)
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