- Had the right idea today of a reversal but executed very poorly and instead of holding for the big move I sold for breakeven after taking too many attempts too early
Lets figure out where the actual turn was and why
- So right here we have the first higher low that used an FVG to push off of and break into a new attempted HOD. That is the perfect spot to take a long for a reversal, but you have to risk sooooo damn much to LOD that its almsot just not worth it. Is there anywhere else to take a long?
- Here is a much better spot in terms of risk and reward. We have a perfect little head n shoulders although that matters little but rather the more important part is that we held that last spike through LOD that reversed strongly. When we hit LOD and makg a strong move off of it that is sometimes an indication that we are at the LOD. Today specifically it was more of an indicator than ever because we moved nearly 65 points from the HOD yesterday to the LOD today which is not a small number. We also have CPI coming on thursday so that market will have a very weak incentive to trend strongly since that uncertain event is coming up. Where did I enter?
- The first entry was gross where I basically just took a SSL long which is pretty stupendously stupid. That is pretty much a roundabout way of doing exactly what I used to do which is just go long randomly for no reason or maybe a trendbreak or something dumb like that. That was a much deserved loss that reminded me a lot of my old self which used to take trade like that just nonstop no matter how red they made me. I then did the same trade again and entered where I stopped the last time which is never a good sign. I stopped again at the LOD instead of placing my stop a few points below LOD like i did on the first trade. We only went like 1.5 points below the previous LOD and spiked hard. this was the first sign of weakness in the sellers. When we spike like that the next pullback should be a zone where accumulation occurs and we can get multiple contracts for the breakout of the previous lower highs that are zones of high liquidity from shorts who are holding.
How should I have traded this?
5m FVG that are created in the downtrend. We never hit them for the breakdown until about the 4495 zone. In the 2m the chart gets a little cleaner
- This was not perfectly clean but this was an FVG fill where we had continuation to the downside. Why was this a viable trade? Internals were also trending lower at the time. I think that green spike may have stopped me out of this trade had I been using FVG but the proper way to use FVG is to use previous candles high and not the FVG candles high. If I used previous candles high on FVG continuation then this wouldve worked perfectly.
- Here is another kind of tricky short trade that wouldve been very very difficult. It hit old SSL and then failed which also was an FVG but it never really touched it before failling. I think it was to the tick so its difficult to capture that trade but if you did take it and had target of new LOD liquidity swipe then thats like 10 points
- This is probably one of the best trades of the day cuz reversal already occurred and we took out some key BSL then sold off through to a new attempted lower low and then we found buyers perfectly in the 15m FVG. I wouldve had to enter and risk the candle low at 4488 which is 3 points to make about 8
- This is actually a much better visual than the smaller FVGs that I put above, This one here is the 15m FVG and it looks muc better the only problem with these FVG are that there are so fucking many of them hahahhaa. How do I know when to break down a 15m FVG and put 5m FVG inside of that 15m FVG and then do the same on the 2m inside the 5m FVG. If I did that then basically the entire day of price action would just be scattered FVGs which I think its slightly fucking retarded.