Trader's Notes
FaD December 06, 2023Good evening, I would like to share a little logic of one, very interesting situation. For some people, it might serve as a little bit of a lifehack. Okay, here we go.
Next, you need to bind the formation to something. I have two kinds - supports and impulses. I'm looking for
And the price reaction is exactly what I need. An active test determines the price's interest in a particular obstacle. I remind you, it is always a single point on the chart. expressed in numbers, not a zone or anything, just a price value.
I go back and see that the classic pattern is at the upper boundary of the impulse. In my theory, this situation is immediately discarded, because it is strictly forbidden to work towards the older support. At the same time, for M6, the H4 impulse boundary is a violation of the 3TF rule. For H4, I can only go as far as M15, which is the shallowest timeframe according to the above rule. But the classic is a precursor to further movement. no more than that.
I decided to wait for confirmation of my longing idea at M15 and above.
After a while on M15 and M20 I observe the following picture:
Price is interested in the level, it showed it with shadows and candles of uncertainty exactly on the border of the impulse.
Price shows a correct pin-bar (again from my methodology) on M15 and M20.
These points are already enough for me to build a picture of further movement. So, the price showed a slight hint at M6 in the form of a classic pattern. Then it went to the border of the impulse and drew confirmation.
I have two variations for entry, for binary options the entry would be until the end of the hour (expiry rules again from my own developments) and there is a long signal. how to set take and stop? It's simple, the stop is placed slightly below the momentum boundary (or other obstacle), take profit is placed either on the nearest support/resistance zones or on dynamic levels, which are trend levels. For this example, I have chosen the second option. The picture is as follows:
Went to H1 and drew two trendlines on the last three price reversals.
In total we have a potential in R3 on the first take and R5 on the second. I think the idea is promising.
UPD от 07.12.2023
So, the price was going up, taking into account the fall of volatility and some reflection, taking into account the fact that the price was almost approaching the take profit, I closed on the first position, on the second position, taking into account the rules of setting take profit, I left it at the level of 50% of R3. I closed in a small profit. I made a profit in binary options.
The main goal in trading is to avoid or minimize losses and it is successfully accomplished. It is not always the way we want it to be. I think that this kind of analysis is quite good, and I think that this format will become the main one for publications in the diary. Thank you for reading, your FaD.
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