1M Displacement (Bearish), 50% Mean Reversion Target, BSL Swept, Limit Order, Price Action,

Here are the key takeaways from your trading notes:

1. Shift in Strategy Focus:

   • You focused on using displacement price action over your typical variation entries, aiming to reduce losses and increase win rate. This is based on noticing that starting sessions with losses has hurt your performance, often leaving you spending the day climbing back to breakeven or negative.

2. Reduction in Trade Volume:

   • By waiting for clear displacement before entering a trade, you're intentionally lowering your trading volume. This strategy led to a low drawdown winning trade today, reinforcing the potential of this approach to improve your win rate.

3. Missed Opportunity Reflection:

   • You missed a major trade the previous day because price missed your key level by a few ticks. Reflecting on this has sharpened your understanding of the importance of timing and patience when waiting for your setups.

4. Market Context and Execution:

   • You noticed buy-side liquidity was swept early in the session, with the market overextended. Rather than following the trend, you strategically planned a contrarian trade by looking for bearish displacement as a signal of weakness to short, given the downside risk of going long.

5. Refinement of Entry Model:

   • You’re considering replacing your variation entry with the new "Price Action Response" model, focusing on displacement for stronger confirmation and tighter stop losses.
   • This new model has shown promise, as displacement typically occurs shortly after strong variation entries, but waiting for it upfront reduces the chance of taking "papercuts" (small losses).

6. Forward Testing and Risk Management:

   • You are forward testing this entry model for the rest of the week, using smaller size (1 contract) to prove its worth alongside your daily trading plan. Your risk management has been conservative as you build confidence in the new approach.

7. Milestone Achievement:

   • You've completed the 5/5 $200 winning days needed for a payout. The next step is to generate profit, which feels like a significant personal breakthrough after six years of disciplined trading.

8. Optimism and Motivation:

   • You expressed excitement about the potential of your new entry model, looking forward to scaling up and achieving your first payout. You're motivated by the possibility of turning trading into a career and lifestyle you've long aspired to.

Summary of Key Points:

• Adapting to displacement price action to improve win rate and reduce overtrading.
• Lower trade volume by focusing on high-probability setups, leading to cleaner trades.
• Using this week as a forward testing period to validate the new entry model.
• Excitement and momentum building after completing 5/5 winning days needed for a payout.
• A clear path forward to scaling up and aiming for consistent profitability.

This mindset and approach should help you sharpen your skills and move closer to achieving your long-term goals.

 

 

 

 

I came into todays trading session with a key intention to focus on displacement price action reactions instead of my variations. The reason being is that since the start of this month, my win rate has been absolutely atrocious, and I am noticing that I have been starting each trading session with a loss, and I am either spending all day trying to climb back, or I am breakeven or negative. 

So I figured that waiting for displacement, will lower my trading volume, and potentially increase my win rate, and today I had a nice winner, with a very low drawdown entry.

I missed an extreme low risk high reward trade yesterday during the overnight session, because price failed to hit my key level by a few ticks, before it displaced higher, and came back to tag what was my mental entry long, and it wound up running over 300 points.

So I came into the session today, noticing that buy side liquidity was being swept pretty decisively. And I wanted to play against the majorty and look for a short opportunity on an overextended market. Not only because we were extended from the overnight, but because from the 930 open, greedy bulls started squeezing shorts to the upside. So my plan was simply to wait for an price action that signaled weakness to play against the trend. Simply because there was too muh downside risk taking longs. 

So instead of me playing a variation entry to the downside with my VWAP bands as usual, I specifically wanted to wait for bearish displacement to show strength in a downside move. And if these displacements prove a stronger signal in the future, I will likely consider completely replacing my variation entry signal, with displacement and re define this type of entry as my 'Price Action Response' entry. 

One thing that I have noticed about this entry system, is that is seems I can keep stoplosses a bit tighter than my variation entry signal. 

And usually, If my variation entry was very strong, it would usualy displace shortly after my entry, and if not, I would take endless papercuts trading that entry model.

I simply had to figure out a way to cut out all of the papercut losses and wait for more confirmation. And I will stick with this for the rest of the week to forward test it. 

Im excited to see todays trading session in Hindsight, because I would have liked to have still been in this trade short, but because its a new entry model, I have slashed risk to only 1 contract, and have a plan to make back my losses on the account, and proce this entry model worth alongside my daily trading plan, so that I can start trading with more size again, and get my FIRST PAYOUT BABY!!!.

Today I also made all of the 5/5 $200 trading days needed in order to get a payout, so now all I have to do is generate profit, and I will finally reap the rewards of 6 years of disciplined work. I can feel it coming.

Trade smart, trade safe, take one good trade each day, and youll be on your way to not only a payout, but potentially a career and life that you could only dream of. 

2D Bullish Orderblock, H12 FVG, H12 FVG SHORT, M1 Displacement through H12 FVG, M5 Displacement through H12 FVG, M5 FVG 50% Hold (LONG), Price Action,

Strengths:

1. Price Action Focus: You successfully read price action without bias, reacting to displacements on multi-timeframe Fair Value Gaps (FVGs).
2. Entry and Re-entry: Your re-entry after the first small loss was well-timed, capitalizing on a bullish-to-bearish variation on the 1-minute chart.
3. Trade Management: You demonstrated strong trade management by cutting your long trade just before a major drop, showing great awareness of shifting market conditions.
4. Profit-taking: You effectively took profit at a key level (50% between the premarket high and low) and managed your trail stops, limiting losses and locking in gains.
5. Adaptability: Even though your upside target wasn’t hit, you adapted by identifying the short side displacement and capitalizing on the downside move.

 

 

Today I came into the market with no bias, I simply read price action, and follow the displacements on multi-time frame analysis FVG's (Fair Value Gaps).

There were many imbalances and gaps, but with hindsight at this current time, it appears that the 12 Hour FVG wil likely be the short trade entry of the day.

I entered the market long after I got the first 5 minute displacement to the upside, with a hold at the 50% line, and a bearish to bullish variation reaction on the 1 minute chart. 

The trade was very annoying to stay in, as is kept coming close to my trail stop multiple times. Until it ran my stoploss for a small loss, and I immediately re entered the trade on the following 1 minute candle, after it wicked the 50% area again. The trade put me in the money immediately, as I was targeting my first take profit to the upside, I noticed that there was a 1 minute displacement to the upside, and I was also tracking that fair value gap, and just short of my upside profit target, it broke the 50%, which is where I cut my trade, and actually happened to provide the exact short entry trade for the session. as the next minute downside candle was the short side displacement in price through the 12 hour fair gap, and the displacement had confluence between the 1 minute and 5 minute charts. 

It took me a moment to catch on to price action, so I wound up marketing short, and adding through the session low and VWAP break. I took profit at the 50% line between the premarket high and premarket low, and then trail stopped the rest of the partial on a 1 minute trail stop. And it took me out of the trade and continued dropping.

 

I think the part about this trade that made it the most difficult for me to catch to the short side, was the fact that it didnt hit the upside bearish orderblocks in confluence with a 61.8% bearish retracement from the prior days range. From that level (which was also my upside price target) I could have waited for a variation price action reaction trade on the 5 minute chart, but overall, I did an amazing job reading price action raw, because I cut the long trade at the perfect time before the drop, regardless of the fact that price didnt hit the upside target I was aiming for. Had I got greedy for the upside, there is a very high likelyhood that I would have ended the day red.