Mira wrote:LeMercenaire wrote:Mira wrote:
Do you consider the opposite S/D zones (lower time frame) as a barrier?
I always consider the H4 / H1 zones to be solid - the ones that drive the overall picture. As I drop down, the lower tf zones can form around the edges of those larger tf zones. I think of those like rumble-strips, slowing down but not necessarily stopping price dead as it gets to the larger levels.
However, down on those lower time-frames, there will be zones that form as standalone elements. These zones are obviously not as solid, robust, or long-lasting as the large tf ones, however they tend to form as price passes a level and they form behind that level. These then form pull-back zones and I use those as add-in / stacking points.
If price does go back through those, then that then can be a good early warning that you could be having a major turn.
The ones that will cause a bounce/rebound effect tend to occur once momentum and / or volume have declined. These are great scalping opportunities - so long as one stays aware to the fact that price can blow a gasket and bust out of that channel at any time.
Very clear! Since I’m using S/D zones to place my stops (as you suggested me) I’m doing a similar process
However I often don’t understand targets.
Fibo projections work, but choosing the right one is not that simple do you use a particular PA to decide when to kill the trade? Or do you use a take profit?
Sorry for all the questions LeM, and thank you for your help!
The main ones I use as tp points are the 50-fib, micro S+D and Daily Pivot. If I have been playing off a Z-Line, then obviously that has its own set of rules.
As price runs, my first overall concern is my +5%. Once I have that, I don't really care how I exit. If I have that, then I will look for any add-in opportunities (those micro S+D Zones) but always with one eye on the nearest, most relevant, 50-Fib.
PA does play a part, lower highs, higher lows etc.
There's no one way to bag-and-bail, it's always fluid with me (once I get the +5).