The vast majority of my trades lately, maybe 95%, fit within one of two broad categories.
(For those with the YTC Price Action Trader, the first category will include all variations of PB, CPB and BPB trades. The second category will include all variations of TST, BOF and any "reversion to the mean" scalp against an existing trend. For the second category, note that I will rarely be entering against strength. Look within the TTF/LTF to see weakness late in the over-extension, or on a subsequent retest. But the whole sequence should be over-extended.)
Let's look at an example and see how it fits within one of these categories.
Today… category 1 (the bearish version).
Let me highlight two key points.
Happy trading,
Lance Beggs
PS. On Tuesday I posted a repeat of an old 2015 Facebook post. You can see it here. Note the similarity in concept. Don't overcomplicate things. Simpler is better.
Hi Lance
Where was your exit point in case you were wrong?
Your entry is quite far from previous top?
Thanks
Hi Bob,
The stop point is always at the level which (if hit) will invalidate the trade idea. The trade idea in this case is that the retest of the point of prior breakdown will hold. As such, any movement above the green retest candle will indicate I’m wrong (the one with the upper tail immediately prior to the entry bar). The stop was 1-2 ticks above this bar.
Hi Lance,
Is there a part 2 to this article? Thanks.
In about 36 hours there will be. And I imagine I’ll do a few more over the next six months.
See here – https://yourtradingcoach.com/trading-process-and-strategy/dont-overcomplicate-things-2/