Aliassmith Beats a "Dead Horse"

[aliassmith]

How about a chart?

I was marking a healthy run of (HL) Higher Lows going up the left there.

I was marking a healthy run of (LH) Lower Highs going down. That was until I found the situation I have been rambling about.

Do you see that wick that popped up out of place?

I believe that is a stop hunt or liquidity grab. They can show up on any timeframe.

If our bias game is good we would know that price going back up that high could be a "trap" or liquidity grab.

Stop losses that were there are now gone, and breakout traders are long from that point and considered trapped.

Luckily, we knew better and shorted there.

That was a clean example and there are more that are hidden. Over time if you are aware of them you will start to notice. You may also notice that they might look like other things with different names.

Last week I have been trading this idea.
I made about 50 trades.
I used about 13x leverage
I made about 9% (honestly there was a day or 2 when I could have made more but got lazy)
I traded on the M1, M5, and H1

Obviously this is only an entry idea/concept
Triggers were not discussed.
Trade Management was not discussed.
Risk Management was not discussed.
Bias was not discussed.

You need all these things for a successful methodology.
As I post more charts some of these will probably be discussed.

[aliassmith]

Ya ya I know it's a H1 chart.
It is easy to get large size in on this timeframe and slippage will not be as noticeable.
Let's say about 5 orders of 25 lots per trade.
Roughly risking $10,000 each trade.
Assume 5R on each trade.
Thats $100,000 in one day.

These trades could be managed in many ways.

[aliassmith]

Phase 3
"Why does my stop loss get hit and then price goes in my direction?"

In this pic you will see price came down and the Institutional traders got their fill of orders and limited supply enough to allow price to push back up where they intend.

In this scenario we would believe that Institutional traders are one entity that plays against the entire retail trader population. I believe this would be wrong. Many banks and trading firms want to make money. They don't care if they get it from each other or retail traders.

The Institutional Traders are supposed to be great at taking other people's money. They don't all use super sophisticated methods. Some will trade levels and use trendlines and other will play mind games and set traps. There are also algorithms running highspeed scaping a little profit in less than a second millions of times a day. Having these firms with different tactics is what enables volume to be provided at most levels if not every level.

Occasionally the volume that is being found is where the stop loss is right under the pointy place.

So basically you're just looking for a discount during a trend either it's the 50% or fib golden ratio or the opening price of that green.

Looking for entry at low.

[Don_xyZ]

Ya ya I know it's a H1 chart.
It is easy to get large size in on this timeframe and slippage will not be as noticeable.
Let's say about 5 orders of 25 lots per trade.
Roughly risking $10,000 each trade.
Assume 5R on each trade.
Thats $100,000 in one day.

These trades could be managed in many ways.

Yes, using bigger TF is good, especially when managing OPM through ventures other than the rich uncles.

[kiwiarian]

Ya ya I know it's a H1 chart.
It is easy to get large size in on this timeframe and slippage will not be as noticeable.
Let's say about 5 orders of 25 lots per trade.
Roughly risking $10,000 each trade.
Assume 5R on each trade.
Thats $100,000 in one day.

These trades could be managed in many ways.

OK nice, and this example is purely a 1H entry, no peeking at a LTF?

[aliassmith]

Ya ya I know it's a H1 chart.
It is easy to get large size in on this timeframe and slippage will not be as noticeable.
Let's say about 5 orders of 25 lots per trade.
Roughly risking $10,000 each trade.
Assume 5R on each trade.
Thats $100,000 in one day.

These trades could be managed in many ways.

OK nice, and this example is purely a 1H entry, no peeking at a LTF?

In this situation there waa no peeking.

[kiwiarian]

Ya ya I know it's a H1 chart.
It is easy to get large size in on this timeframe and slippage will not be as noticeable.
Let's say about 5 orders of 25 lots per trade.
Roughly risking $10,000 each trade.
Assume 5R on each trade.
Thats $100,000 in one day.

These trades could be managed in many ways.

OK nice, and this example is purely a 1H entry, no peeking at a LTF?

In this situation there waa no peeking.

OK, it looked quite clear on the 1 HR when it passed the prev candles close/high so would make sense.
Quite different to a momentum break out ZL, this is more a side by side candle pattern.

[aliassmith]

OK nice, and this example is purely a 1H entry, no peeking at a LTF?

In this situation there waa no peeking.

OK, it looked quite clear on the 1 HR when it passed the prev candles close/high so would make sense.
Quite different to a momentum break out ZL, this is more a side by side candle pattern.

Price simply moving to SL areas picking up orders

[aliassmith]

GBPUSD has looked nice recently.
Can you find 30 pips in 3 trades here?

[Don_xyZ]

Following your method, I guess it would be something like this

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