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RE: Forex Trading Journal, June 1st 2017
Sure, I am happy to have this kind of talk. :)
I think maybe you are right. Two days passed and we still don't see any obvious upward move.
I trade mostly major forex pairs and metals. Basically, I will go with the longer-term trend, and look for major support and resistance levels. I will take rejections at those levels as my entry signals (like pinbar or false break-out from inside bar etc.).
To say frankly, the trade we are talking now is not the one with a typical signal that I should take based on my plan. The type that I take with more confident is a pinbar formation at a pivot point near SR level. I found that those are the trades with high enough probability if I enter every trade with risk and reward ratio more than 1:2.
Yep. I think thats a good way to go about it too. I had a period there where I traded the exact same way as you do! I found this worked well if you could scan through charts, looking for trends. And pinbars are such as obvious trade signal that they generally create a reaction just based off their presence alone...if that makes sense.
THIS, however, is the exact trade I look for. It is a trade where buyers come in early at the first breakout, set their stops at an obvious spot, the market moves to these orders like a magnet, creating a great price to get in.....AND what is essentially the trade you like to take as well (false breakout of inside candles)...which is a rejection of a strong level. In this case, replace the word "strong" with "significant", and you have the same trade setup you normally take. Except the context is different; trend vs range.
I personally feel the range trades have more potential though. A lot of orders build up outside the range during congestion, and makes for a fairly predictable movement!
And you catch massive long-term trades by getting in on a shorter-time frame! I generally enter on the 15min, using the 4hour and daily charts for setups.