Sofic, thank you for this insightful and thought-provoking contribution to the price action discussion
Nigel, I feel like either I am looking over your shoulder, or you are looking over mine, as our strategies are very similar right down to money management. Anyone following your strategy will do just fine! Cheers!In the above example I get interested when price is approaching the underside of the trendline (drawn in orange in the above example).
I like to enter my sell trade when price is as close as possible to the trendline.
I have very clear expectations - price should not manage to establish itself above the trendline, because this would signal that the buyers have regained control of the market. If price manages to to this, I quickly acknowledge that I am wrong on this occasion. I close my trade and take my loss.
I want to see price fail at the underside of the trendline and then quickly fall away. The buyers tried to regain control of the market after the trendline break but have run out of steam; the sellers are back in control. When this happens my sell trade will move into profit, and as it does so, I will tighten my risk by bringing my stop to break-even.
I now have a risk-free trade.
Thanks Gary - yes you are absolutely correct - I have tried my best to look over the shoulder of many traders over the years, and there are definitely commonalities between profitable strategies and approaches. Sensible money-management and asymmetric risk v reward are the two things that I come across most often in profitable strategies.Nigel, I feel like either I am looking over your shoulder, or you are looking over mine, as our strategies are very similar right down to money management. Anyone following your strategy will do just fine! Cheers!
Hi there Gary,Just an after-thought re trendlines and spikes, etc. Personally, I switch to a line chart and use the close prices to draw my lines. Allows me to see things without the clutter and noise, and seems to work for me. Cheers!
Funny you should ask Price Action Pro, I just did one yesterday!Hi Nigel to you have any recent video?
Very nice vids by the way, i love Price Action