Metagame Entry – Recognising that entry is not just about price or patterns, but about the people behind the price and patterns.

And in particular the times when they're experiencing frustration, pain and disappointment.

Because the best opportunity comes when I can feel someone on the other side of the market getting it REALLY wrong.

This was one of my favourite trades of the week. Partly because it wasn't in my original plan. But when it set up, it screamed out to be traded.

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But then this happened…

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For those with the YTC Price Action Trader, the setup should be obvious. Refer to Volume 3, Chapter 4, Pages 28-31.

And you'll note that the entry is exactly at the point I define as the LWP. Refer to Volume 3, Chapter 4, Pages 72-77 for discussion on the LWP concept.

 

This trade was not part of my plan at the market open. I was keen to trade once price broke the overnight chop-zone, either higher or lower.

But until then… watch and wait.

Remain focused!

Because sometimes… price will set up right to sucker someone into a trap.

And when you see that trap, and feel their pain, you may well have found yourself some opportunity.

Happy trading,

Lance Beggs

 


 

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4 Comments

  1. Hi Lance,
    Did you place the stop off the TTF or LTF? It looks like if you placed it off TTF the stop could have been about 10 points which would give you a 1:1 R:R off your T1 exit.
    Do you tend to think of the stop in terms of a numerical value (10 points probably being quite high) or just off the R:R ratio? i.e. you are willing to have quite a wide stop as long as T1 is at least 1:1.
    I hope that makes sense.
    Thanks Lance,
    Josh

    1. Hi Josh,
      The initial stop location was on the LTF, not shown in the article. If you look at a 15 sec NQ chart for 7th Jan you’ll see price form a narrow range stall for a couple of candles just before the break lower (and entry). This gives a tighter stop and greater R:R.
      My stops are automatically placed at 4 points, and then manually adjusted to fit the price structure. I personally think in numerical terms, rarely accepting more than 4-5pts. But yes, I am also concerned with R:R and seek 1:1 or better.
      Cheers,
      Lance.

    1. Trade cost per point? I assume you’re referring to the amount of P&L per point? Let me know if I’m wrong.

      NQ = $5 per tick of movement (each tick being 0.25 points)
      https://www.cmegroup.com/trading/equity-index/us-index/e-mini-nasdaq-100_contract_specifications.html

      There is also a micro NQ contract:
      MNQ = 50 cents per tick of movement (again each tick being 0.25 points).
      https://www.cmegroup.com/trading/equity-index/us-index/micro-e-mini-nasdaq-100_contract_specifications.html

      Cheers,
      Lance

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