Last week we discussed the Trading Timeframe (TTF) Narrow Range (NR) bar entry and looked at a trade example.
See here if you missed it. You’ll want to read this first. (Link: http://yourtradingcoach.com/trading-process-and-strategy/trading-timeframe-narrow-range-bar-entry-part-one/)
So now, as promised, let’s look at another trade example from later in the same session.
(Again this is a difficult trade example with messy price action sequences – ’cause that’s what the market often provides – and because it’s my belief that they provide you with greater educational value than simple “textbook perfect” examples that are in actual fact a rarity!)
Let’s wrap it up by again covering the two important points from last week’s article.
(1) Most traders look for confirmation via price movement in the direction of the trade.
I prefer to look for inability to move against my trade premise. It usually provides an entry much closer to the turning point.
In this trade, I bought because price couldn’t move down. An NR bar is one example of how to do this.
(2) Please note that I am NOT advocating buying or selling the break of any TTF NR bar.
The trade must be in a proper setup location, where follow through in your trade direction makes sense with regards to the structure of the market.
The trade must offer good reward:risk parameters. The NR bar entry will ensure low risk. The market structure though, MUST provide multiple-R opportunity.
While trading and waiting for LTF price confirmation… make sure to also keep an eye on the TTF. It may just be proving an inability to move further into your setup area, offering you a nice low risk entry into your trade.