his is one of my setups that tends to work.
The idea of trading is to a greater extent to make money, therefore the hit ratio is not as important as that the benefits exceed the long-term losses.
For this asymmetric relationship between risk and reward, you have to take into account high timeframes and make precise entries from lower timeframes.
It can be done by changing timeframes, but a more practical way is using averages applied to the highest timeframes, in this case the average of 100 applied daily and hourly, with entry in 30 min. When the averages are put on, the momentum of the different time frames is seen at a glance.
In the graph it can be seen how there has been a change in the momentum of the lowest timeframes with respect to the highest one, since the average is rotated downwards.
So the signal is bearish , but what is the time to enter? The previous broken support coincides with the 0.5 fibonacci, and in my experience fibonacci tends to work, although I don't know why.
Therefore, to enter, we wait to see how the price develops at that level, waiting for a candle or double top pattern and enter with a minimum sl.
The minimum stop loss makes it less likely to hit it, but when it is correct, the R: R increases exponentially, since reducing the stop loss has an exponential effect: if instead of a sl of 20 we put one of 15, we are reducing it 25%, but if we reduce it by 5 more points from 15, we are reducing it by 33%. As we get a lower stop loss, the exponential effect increases.
Finally remember that this is not financial advice, it is just a journal where I put my operations and probably fail more times than I hit, but again it is about making money, not just getting it right.
The idea of trading is to a greater extent to make money, therefore the hit ratio is not as important as that the benefits exceed the long-term losses.
For this asymmetric relationship between risk and reward, you have to take into account high timeframes and make precise entries from lower timeframes.
It can be done by changing timeframes, but a more practical way is using averages applied to the highest timeframes, in this case the average of 100 applied daily and hourly, with entry in 30 min. When the averages are put on, the momentum of the different time frames is seen at a glance.
In the graph it can be seen how there has been a change in the momentum of the lowest timeframes with respect to the highest one, since the average is rotated downwards.
So the signal is bearish , but what is the time to enter? The previous broken support coincides with the 0.5 fibonacci, and in my experience fibonacci tends to work, although I don't know why.
Therefore, to enter, we wait to see how the price develops at that level, waiting for a candle or double top pattern and enter with a minimum sl.
The minimum stop loss makes it less likely to hit it, but when it is correct, the R: R increases exponentially, since reducing the stop loss has an exponential effect: if instead of a sl of 20 we put one of 15, we are reducing it 25%, but if we reduce it by 5 more points from 15, we are reducing it by 33%. As we get a lower stop loss, the exponential effect increases.
Finally remember that this is not financial advice, it is just a journal where I put my operations and probably fail more times than I hit, but again it is about making money, not just getting it right.