Patterns Observation.

[Don_xyZ]

Patterns. What happen if there is a clash? Which one will you go with? Why? What's the grade of that potential trade?

Let's say you see there is an incoplete double top pattern which points to a bearish reversal but then there is also an ascending triangle which points to a bullish trend continuation. Which one will you choose? This is a daily scenario where you have 2 patterns clashing in the same tf or from different tfs.

Clash of Patterns.png (45.75 KiB) Viewed 2069 times

After you know what to do with your risk management, you can go with your choice of action with ease. However, you must also grade your trade. There are a lot of elements that must be considered when grading a trade and one of them is lack of support. What does it mean? If a move is supported by a couple of tf then it is considered stronger. A move in M1 that has a backbone in H1 is obviously stronger than not having H1 supporting it at all. If the H1 bias is downward and the M1 is upward then you have to be cautious to take bullish trades. If H1 is down and M1 is also down then you can be more confident with your bearish trades.

[Don_xyZ]

Consolidation, Accumulation, Distribution, Re-accumulation, Re-distribution, S/D, Rectangle, they are all showing the same thing. It's the expectation of what the price will do after the formation is completed that makes them different. Some people call it a market struggle, others call this area as balance, indecision, or simply whatever. It doesn't really matter as long as you know the core principle behind the event and what is that? The price could not go up or down for a period of time. It could be a single candle (indecision candles), 2 candles, 3 candles etc.

Types of SD.png (12.09 KiB) Viewed 2066 times

Consolidation phase or S/D can also come in the form of a known western chart pattern like a Rectangle, Channel, Flags, Pennants, Wedge, Double Top/Bottom, top and bottom part of H&S/IH&S. A H&S pattern on M5 might look like 2 candles or 3 candles S/D on a higher tf.

When you see something like this, you should know that a decision will be made at some point and the winner will be announced. The tighter the formation is, the stronger the breakout of this formation will become. When a pattern fails, there is always a reason why but unfortunately, we don't always know what the reason is. But one thing is for sure, there is big money involved in every event in the market and there is an algo behind that big money. What you need to do as a trader is to follow the traces of that big money and react accordingly while limiting your risk.

[Don_xyZ]

Hmmm.... adding a mini anchor trade seems good.
Boxes are minis, first one didn't reach full potential but the second did.
1st daily anchor trade also didn't reach full potential, 2nd did.

mini Daily Anchor Trade.png (78.05 KiB) Viewed 2055 times

Gonna observe more.

[Yirbu]

Consolidation, Accumulation, Distribution, Re-accumulation, Re-distribution, S/D, Rectangle, they are all showing the same thing. It's the expectation of what the price will do after the formation is completed that makes them different. Some people call it a market struggle, others call this area as balance, indecision, or simply whatever. It doesn't really matter as long as you know the core principle behind the event and what is that? The price could not go up or down for a period of time. It could be a single candle (indecision candles), 2 candles, 3 candles etc.

Types of SD.png

Consolidation phase or S/D can also come in the form of a known western chart pattern like a Rectangle, Channel, Flags, Pennants, Wedge, Double Top/Bottom, top and bottom part of H&S/IH&S. A H&S pattern on M5 might look like 2 candles or 3 candles S/D on a higher tf.

When you see something like this, you should know that a decision will be made at some point and the winner will be announced. The tighter the formation is, the stronger the breakout of this formation will become. When a pattern fails, there is always a reason why but unfortunately, we don't always know what the reason is. But one thing is for sure, there is big money involved in every event in the market and there is an algo behind that big money. What you need to do as a trader is to follow the traces of that big money and react accordingly while limiting your risk.

Already traded this two times this morning. 1 profit and 1 be.
Very nice. Also nice that I could see it immediately after reading your post!

[Don_xyZ]

20R cap for today coz I had to go drive my daughter to her 1st ever filming. Not for the main role but kids are happy to be in it if it's with her friends
Thank goodness it's a straightforward daily anchor trade.

Done for the day Monday.png (76.35 KiB) Viewed 1996 times

@Yirbu

Great! It helps

[IgazI]

20R cap for today coz I had to go drive my daughter to her 1st ever filming. Not for the main role but kids are happy to be in it if it's with her friends
Thank goodness it's a straightforward daily anchor trade.

Done for the day Monday.png



@Yirbu

Great! It helps

Does a stop size of 0.6 pips sound right to you? EURUSD?

sl_size.jpg (142.85 KiB) Viewed 1963 times

[aliassmith]

20R cap for today coz I had to go drive my daughter to her 1st ever filming. Not for the main role but kids are happy to be in it if it's with her friends
Thank goodness it's a straightforward daily anchor trade.

Done for the day Monday.png



@Yirbu

Great! It helps

Does a stop size of 0.6 pips sound right to you? EURUSD?

sl_size.jpg

Possible but not always in my opinion.

[Don_xyZ]

20R cap for today coz I had to go drive my daughter to her 1st ever filming. Not for the main role but kids are happy to be in it if it's with her friends
Thank goodness it's a straightforward daily anchor trade.

Done for the day Monday.png



@Yirbu

Great! It helps

Does a stop size of 0.6 pips sound right to you? EURUSD?

sl_size.jpg

Yes it’s good but the thing is we can’t make the most out of it unless you go very low with your risk per R. This fall into the category of Ghost entry because it usually provides this kind of trade, the sub pip trade. Like Alias said, it doesn’t happen that often unless you’ve found a way to constantly get that result.

[Yirbu]

20R cap for today coz I had to go drive my daughter to her 1st ever filming. Not for the main role but kids are happy to be in it if it's with her friends
Thank goodness it's a straightforward daily anchor trade.

Done for the day Monday.png



@Yirbu

Great! It helps

Nice trade!
Hope you had a good time at the filming.
It's these moments that often make the best memories in life for both of you.

I made some notes on my chart because I know we all love charts. (next time I'll use bigger fonts)
Overall I was quite happy with the first part of the day but then disaster struck.
Because I had some appointments later on the day I couldn't trade more.

Trade #1 was straightforward. The greenish area is what I took from your post on SD candle zones so I added to my position.
Trade #2 was a trade from a SD area. This time I decided to short it at the top so it would be a bit safer. Got out at be when price came back
Trade #3 was a bit problematic but worked out. I think I got married to this trade and wanted it to keep going down for the next 36 months.
Eventually it didn't and I closed it.
Trade #4 was a trade with the motto; if it doesn't go down it must go up.
Trade #5 my position size was X10 what it should be
Trade #6 I forgot about the news and got -3R slippage
Stupid trade because I wouldn't even have time left to manage the trade as I had to go.

That was enough trading for me.
I did a nice Us30 trade somewhere that kept running up but for a first time trading like this I was ok-ish with the result.
It was even more "micro" as I imagined but I liked it.

For trade 1 and 3 I found it difficult to decide when to close them because I was thinking/hoping it would go down a lot more.
That's also why I took partials because usually I don't like to take partials.

Now trade 3 is the same trade as you took. It's just that your trade was from the top part of that m1 candle and mine from the bottom of that candle
But in these areas, you just have faith and hop in?
Also I was amazed to actually see how big the difference is of these starting pips in a trade.

Let's see what today brings

221024 - EURUSDM1.jpg (237.14 KiB) Viewed 1863 times

[Don_xyZ]

Wow... yesterday was a very good day.

When I trade I don't usually mark my chart but for those who want to follow along my way of thinking I put in some time to mark these so let's just go to the charts...

long term bias is still down but short term bias is up.png (61.68 KiB) Viewed 1815 times

It's very clear that the long term bias is still down. However, there is an attempt to drive the price up after the lowest from last month. We also already got a higher low this month but we still haven't break the monthly high (October's and September's).

short term momentum zoomed in and the morphing patterns.png (94.55 KiB) Viewed 1815 times

So if we zoom into the H1 tf, the universal tf, we can see clearly that the attempt to drive price up have valid points. The traces are there. Line 1 starts at the latest high before the breakout to make a higher high. Line 2 starts at the latest lowest low before the higher high was made. Line 1 connects the higher highs and after this we can start putting line 2 with the same angle as line 1. However, the next higher low didn't come even close to line 2. Violet box showed the distance between the new higher low to the previous low's angle (line 2) so we make a new line, line 3. This line 3 showed the shifting of angle and created a crooked Channel pattern which actually turned into a potential Ascending Triangle pattern. Unfortunately, the new higher high after the new higher low also did not close at line 1 though this is much closer than the distance between the latest higher low to line 2. So we connect this new higher high to the previous higher high and make line 4 and put line 5 for the bottom part. Line 5 though, is drawn incorrectly. Sorry for that. It supposed to look identical to line 4 as far as the angle goes. At this point, there is high enough chance that the price will go up as the angle starts picking up the pace.

Regular anchor trades and mini anchor trades.png (47.91 KiB) Viewed 1815 times

There were 2 regular anchor trades and 3 mini anchor trades there. The first daily anchor trade was a flop but the 2 mini anchor short trades bank after reaching the intended target. The 2nd daily anchor thrived but haven't reached its intended target which is around the parity level 1.0040. Why there? Look left (top left, bottom left) on H1 and D1. Is there a chance for it to reach the target, highly likely but if you're seeking 100% surety then you better bail out completely or take partials. The 3rd mini anchor trade successfully reached its intended TP.

Is there any scalp trade during the day? The idea behind mini anchor trade is to aid the anchor trade and regular anchor trade and this runs along the idea behind the scalp trade. So when mini anchor is used it's better not to have scalp trade.

I wish I traded them but the filming is still ongoing and I can't have my mind partitioned into 2; trading and something else, coz the last time I attempted doing that, I ended up losing the day.