Image 1 - This is an attempt to trade DojiZones according my understanding of how we are to draw them. The thin yellow lines are a 15 minute DojiZone. The thicker yellow lines are a DojiZone based on small swings rather than just the M15 candles. I thought that the confluence of the two zones might increase the probability of the zone holding and getting wicked. You can see that I entered in a few areas. I generally enter when price enters a zone in anticipation of it wicking the zone. I also break my full entry size up to average out my entry price. When the 9:45 candle closed below the larger zone I exited the trade at a small loss. Was my thinking of confluence sound in this area, or was I crazy for trading in this area of consolidation? Next, I attempt to trade the reversal. Accordingly, I doubled my risk amount with my stop above the swing (not visible in the image). I made two partial entries, the first as price crossed into the larger DojiZone and the second as it touched the smaller zone. As you can see, this yielded a large loss. I took these trades with very small amounts of money because I have yet to be consistently profitable. Truthfully, I did not like this reversal set-up for reasons that I will explain in the next image, but these days of losing in both directions with greater risk are what hurt my account most.
Image 2 - As I stated above, I didn't feel comfortable with the reversal set-up. The reason for this was that though price close below the zones, it did not close below the area of support evidenced by several candles but (for me) specifically the low of the 9:15 bullish candle. In this image, I have drawn my "zone" a little differently. I have marked the beginnings of the momentum candles --- red for downward momentum and green for upward momentum. I did this because the wicks of these candles are the highs and lows of waves on a smaller time frame. In my mind, they are origin points of momentum in their particular directions and thus serve as potential points of support/resistance. As you can see, this would have yielded a profitable trade initially, albeit with some drawdown because the zone is bigger. Am I on the right track in thinking this way? My reasoning on this has been shaped by my understanding of posts by Doji (ABCD's, zones), MO (1-2-3's), and Jalarupa (BO-BI-Boom) in this thread and some others.
Image 3 - Applying the same logic, I have drawn my zone to identify the potential area of reversal and added a DojiZone as an entry target. The trade was a profitable scalp trade and I exited early at 1.5176 because price failed (again) to close below the 9:15 bullish candle --- which (for me) is an unbroken origin of momentum.
Again, I would appreciate feedback on this. I am attempting to "see" and "make this my own" as many of you encourage us learners to do. Any other "learners" are welcome to respond too, because we learn together. Thanks in advance.
https://imgur.com/a/6ewph
IS A LIE__________
