Feedback suggests that people got a lot out of last week's article, so let's continue with that topic one more time.

Check it out here if you missed it – https://yourtradingcoach.com/trading-process-and-strategy/opportunity-exists-where-you-find-frustrated-traders/

This was the general idea though –

I'm always looking at the market from the perspective of "the other trader".

In particular, seeking out the places on the chart where others might become frustrated.

Where is someone stuck out of a trade they wished they were in?

Where is someone stuck in a trade they wished they weren't in?

That's where I want to trade!

This concept can be applied on any timeframe. You can use it on the Trading Timeframe to find quality trade locations. You can use it on the Lower Timeframe to time your entry.

It's this Lower Timeframe application that I want to look at today.

Timing an entry at the point of maximum frustration for our poor friend, "the other trader".

Let's start with the general trade idea.

Opportunity exists where you find frustrated traders

And so let's now step through the data to see how this trade idea unfolded.

Opportunity exists where you find frustrated traders

Opportunity exists where you find frustrated traders

Opportunity exists where you find frustrated traders

Opportunity exists where you find frustrated traders

Opportunity exists where you find frustrated traders

Opportunity exists where you find frustrated traders

Opportunity exists where you find frustrated traders

Opportunity exists where you find frustrated traders

Opportunity exists where you find frustrated traders

Opportunity exists where you find frustrated traders

Opportunity exists where you find frustrated traders

Opportunity exists where you find frustrated traders

Opportunity exists where you find frustrated traders

Happy trading,

Lance Beggs

 


 

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4 Comments

  1. Hi Lance,

    Thank you for this wonderful article. I have a question regarding your entry decision on this trade. On the third image from the top, you have written that you aren’t keen on taking the trade way up here despite a visible stall or at least the beginning of one. With hindsight i can see why you chose to wait but i would like to understand the reason for not taking the trade on the first bullish candle (intra candle)? When i look at the image where you say you’re not keen on entering way up here i sense that some of the shorts must already be trapped when the price pulled back. So am i correct when i say that you usually like to wait for a longer stall as that increases the number of traders getting trapped who would subsequently provide the initial orderflow in your direction? Obviously the price could have very well just shot up from there without you and that would have been okay and you would have moved on to the next opportunity. Apologies in advance for the long question.

    1. Hi Vinayak,

      To be fair, this trade was 3 years ago so I have direct recollection of the decisions and reasons underlying them. Best guess though: While I do like to see a good stall that really builds tension and anxiety in other traders, I suspect in this case I would have not perceived sufficient edge on entering here due to lack of “room” to the swing high. Stop entry on a break above the TTF bar (or LTF structure) takes me almost immediately into the swing high structure. Waiting for entry lower gives a “little” more room to play with, providing a greater opportunity to scale some out for profits and an opportunity to easily scratch the rest if the swing high holds.

      Cheers,
      Lance.

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