THIS IS INSANE - Technically speaking the market in general is in a downtrend. a recession or correction. it should not matter. what is insane is am taking a Long trade on such a downtrend market. As any trading Guru would say " dont swim against the Current " dont trade against the trend. But I did. well I make exceptions. let me explain.
The Long-term(M) is in...
The big question in every trader mind, where to place my STP loss. most common trading strategy calls to place the stop loss above a SZ (Supply zone) or Below a DZ (Demand Zone), right that seems easy but its not. ask any trader & he will recount stories of price violating the SZ, & the stop loss is triggered the loss is carried (hopefully small) only to have the...
Choosing your STP loss determines your risk, and is essential part of executing your trade.
On this trade analysis, we are looking at ticker F (Ford Motors) using the weekly (W) chart as the active chart, the price is selling off & coming into a Demand Zone (DZ). This DZ is also the last higher Low HL of the long-term (M) monthly uptrend.
my trading strategy;...
It seems like all trading rules are out of control in this bearish market. One of the Greatest investors of all time Warren Buffett said "be greedy when others are fearful; and be fearful when others are Greedy" this rings true in the mind. However Buffer was an investor & not a traders. the rules differ or both games.
THIS IS ONE OF MY BEST & MOST PROFITABLE...
In the world of trading, do you know what a Rw/Rs (Reward to Risk) ratio is? if you dont this article will be beyond your understanding. I suggest you read up on Reward to Risk ratio & come back to read this. If you do know what a Rw/Rs ratio & assume most of you do, we can continue our merry trade discussion ;D
My Rw/Rs ratio for Swing trades that i take on a...
The Trend Reversal Trade, can it work? I have been trading the market for 10 years & the statistics in NOT in your favour, this type of trade has a low probability & trading is a game of stacking the probabilities in your favour. this is to be distinguished from investing; which is a whole different game.
Back to the infamous Trend Reversal Trade. This is the...
Classic (W) in downtrend & long term (M) in down trend.
waited for a Bounce (correction) up to the
last Lower High of the (W) took the SHRT at
My risk was right above the inverted hammer
& down she goes 7 weeks or seven red candles
I closed my Short today, while price is coming into a strong DZ
from the monthly chart
I fought Greed to keep the...
Two trades one long and one short trading the upper and lower bands of a price channel. I dont generally trade a price channel for many reasons, but with the long term chart dominating trend in my favour it worked out. For this trade my long-term chart was (W) chart and my current price chart (D) chart. The current chart is where i take my entry, stops & cover my...
I have been asked to show a trade opportunity am about to take & share it with you. All of the trades i have posted previously were trades that i have executed in the past, so this is something new. So, what are the possible outcomes we can expect
the price may never come to our DZ entry
the price may come into our DZ, we take the trade & the STP is triggered
When i want to take a trade, I look for ODD ENHANCERS, the more odd Enhancers I have the more likely the market will turn in my favour.
One of the most important Odd Enhancers is proper Risk to Reward ratio. Rs/Rw means how much am willing to risk if the trade goes against me, divided by how much Reward is trade gives if it is profitable. A properly weighted Rs/Rw...
Here is V (VISA) chart the price is coming into a strong DZ(Demand zone) untested sweet DZ, and its from the long-term (M) chart, so even better. the weekly chart (W) where i took the trade was correcting (hoping) into this DZ. if the DZ holds the price action was indeed a correction & the long-term uptrend on the (M) will continue. if the DZ fails to hold, well...
Lets say you have a trade opened & its profitable. all going to plan. then you get greedy. over boastful of your legendary trading skills. you ignore the original trade plan, you devise a better plan to accumulate more profit. you dont respect your previous profit Targets, & you keep the trade running, eventually you becoming forgetful of the market nature &...
WHY I TOOK THE TRADE
- heavy supply into a DZ from the (M)
- the long-term chart (W) in downtrend
- news of new Corona strain puts negative pressure on stock's sector
-price broke & CLS below DZ. invalidating the demand zone (DZ)
WHY I COVR PSTN
- my STP loss was triggered.
WHAT I LEARNED
- my ENTR to SHRT was too late. i chased the...
WHY I TOOK THE TRADE
- Long term chart in uptrend & price is testing into a new DZ
- The DZ(demand zone) on the (D) chart is the last Higher Low of the (W) uptrend
- technically: the (W) chart & (M) were in uptrend
- Price failed to CLS below the DZ, I enter LNG on the retest
- Double bottom confirmed after price broke out & rallied
WHY I CLOSE THE...
Basic Price coming into DZ. Good odds . Price fluctuated in DZ & close below it. STP triggered. Loss carried
LONG on QSR - Took Loss
LOSS Taken 0.88
Why I took the trade?
The long-term (M) in uptrend
The trade chart(W) is in correction.
The price coming into the DZ (D) unbalanced selling. Outside BB bands
Low Risk as ENT was near the bottom of DZ
TOOK my Loss - am...
FOLLOW THE TREND AS IT CHANGES
Long-term chart (W) Trading chart (D)
First trade (undocumented) - The (W) was in uptrend. looked to (D) chart to take a LNG on price entering the DZ (demand zone) it was untested DZ
from the longer term (W) chart.
price entered the DZ & broke through it even closed below it. my STP was triggered & I took my loss
Trade on S&P ETF for US Crude
Opened the LNG in OCT as price was testing
the HLof the Longterm (M) Uptrend.
My STP-Loss was below the red line around 70
Price rallied for 11 weeks till it reached Resistance (top red line) I closed 1/2 the LNG to take
in Profit & control Greed.
Today as price broke the 102 Mark. I closed the other 1/2 of LNG
Trading is simple but not easy. Really anyone can do it. Here are my rules
- Use a 3 chart correlation to trade the bigger picture & filter out market fluctuation.This will help to control your emotions & control trigger fingers.
- scan the market for low risk (Rs) and high reward (Rw) trades. a ratio of 1 to 3 is minimum. Find places where Support &...