Win, lose or draw!
I'd be happy to take these trades EVERY TIME.
Let's start with some much higher timeframes to give you some context.
So there is good potential for strong directional movement below prior lows.
Any break to new lows… I'll be all over any BPB weakness.
And even better… if the market sets up right I'll try to enter short pre-break (above the low of day) to profit as price breaks lower.
Let's look to the Trading Timeframe chart to see what the market offered.
So we had some missed trades. Some losses. And some nice wins.
A mixed bag really!
The common theme being that they all traded either (a) a BPB entry short after break to new lows or (b) some kind of PB entry short above the low of day in anticipation of continuation through the low.
I mentioned in the title of the article that I'd take these trades EVERY time.
Context > Setups!
If you're results are inconsistent, pause to consider whether or not you're placing too much emphasis on setups and not enough on context.
Where your trades occur within the S/R and trend structure of the market, is of much greater importance than what kind of "pattern" triggers you into a trade.
How the market structure and price action influences the thoughts and emotions of other traders in the marketplace, is of much greater importance than how the entry sets up.
Give it some thought!
Master Lance. I am a big fan of your stratege. ?
a question, how do you calulate the position size in trading forex?
the fixed % of balance or fixed points or fixed money.
in your trading example. you use points..
waitting for your replying.
Single position risk is to NEVER EVER exceed 1% of equity. And that’s the absolute max. 0.5% would be even better.
In forex you’ll have additional risks if you trade multiple pairs at once. Trading highly correlated positions will expose you to potentially greater loss so you’ll need to further reduce position sizing to compensate.
Just like the previous commentator said, you should be called MASTER Lance.
Seriously, how do you manage to write such detailed posts? I need to have a cup of coffee next to me to make sure I’m following your thought process exactly. Btw how long does it take you to review your trades, annotate your charts and then write a detailed blog post about it?
Thank you for your wonderful posts.
Ha ha. Thanks.
I spend about 2 hours a day doing review of my trading.
If I’m writing a blog post I’ll already have the idea clearly in my mind, having developed it during my own trading review process or from email Q&A. So the whole writing and editing process is often done within 2 hours or so. It’s not hard if I’m clear on what I want to write. The “tech” involved with saving a chart and adding notes to it is pretty easy.
nice article as I expected .any time I read your blog it seem like very simple but a lot of depth knowledge , for example – you expect that price break low but when I study depth I realise why you are confident about the break then I figure out reasons like (context , how many time trader fail , weakness , what is the structure , some fake candle on TTF but when I look LTF perspective it continuously support our analysis , day type , much more ) . any time you write simple word I find great depth simple I ask question myself how you know about this ? today article you write about inside day concept . I learn this concept from frank Ochoa book .
In time, simplicity forms out of the depth of knowledge and experience. An informed simplicity, unlike the ignorant simplicity of the beginner.
But for all of us, there is no ending. Just ongoing and never-ending growth & development.