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adaseb
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Postby adaseb » Thu Jun 02, 2011 4:49 pm

can you post an example of what you mean by levels getting engulfed.

the best way ive found is to simple wait for a failed low and a higher high to form and just enter on the pullback, when the failed low fails to hold, i look to get out.

that way or I just look at the depth of market.

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ajaymein
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Postby ajaymein » Thu Jun 02, 2011 4:51 pm

This supply level has been consumed as the buyers in the demand level below were stronger than sellers. Therefore we can assume prices will go higher until sellers at a supply level exceed buyers.

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Postby adaseb » Thu Jun 02, 2011 4:52 pm

for example

a few mins ago i longed at around 36.00 when it failed to go lower and the momentum started to gain, i watched the pivot at around 36.05 and made sure it wasn't causing resistance which it wasn't so i didnt look to get out.

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Postby ajaymein » Thu Jun 02, 2011 4:54 pm

adaseb wrote:can you post an example of what you mean by levels getting engulfed.

the best way ive found is to simple wait for a failed low and a higher high to form and just enter on the pullback, when the failed low fails to hold, i look to get out.

that way or I just look at the depth of market.


When levels get engulfed and opposing levels get respected simultaneously, HLs or LHs are made.

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Postby adaseb » Thu Jun 02, 2011 5:00 pm

ajaymein wrote:
adaseb wrote:can you post an example of what you mean by levels getting engulfed.

the best way ive found is to simple wait for a failed low and a higher high to form and just enter on the pullback, when the failed low fails to hold, i look to get out.

that way or I just look at the depth of market.


When levels get engulfed and opposing levels get respected simultaneously, HLs or LHs are made.


yes but when a level gets engulfed price has already moved away from that area and you'd have to use a larger stop loss to take the trade.

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Postby ajaymein » Thu Jun 02, 2011 5:03 pm

And of course, minor retest of previous supply and price taking off from it.

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Now that hourly and 15M have closed, I can transition trade to higher time frame and set stop at BE knowing that if price gets back to my entry, it would have made a lower low off previous 15m bar and could change direction.

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Postby ajaymein » Thu Jun 02, 2011 5:07 pm

Well I actually closed +20 now bc there is a small supply level on 1m chart again and my squiggly line is perfectly in line with it so price will probably bounce a little.

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Postby ajaymein » Thu Jun 02, 2011 5:10 pm

adaseb wrote:
ajaymein wrote:
adaseb wrote:can you post an example of what you mean by levels getting engulfed.

the best way ive found is to simple wait for a failed low and a higher high to form and just enter on the pullback, when the failed low fails to hold, i look to get out.

that way or I just look at the depth of market.


When levels get engulfed and opposing levels get respected simultaneously, HLs or LHs are made.


yes but when a level gets engulfed price has already moved away from that area and you'd have to use a larger stop loss to take the trade.


Yes, but in most cases you can within a couple of minutes find a spot to tighten and tuck your stop under. Many times, a safe BE is only a few minutes away...but some people don't move to BE so I guess it depends on your trading style.

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Postby ajaymein » Thu Jun 02, 2011 5:13 pm

Manually closed -8

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Postby ajaymein » Thu Jun 02, 2011 5:16 pm

Entered short again...looks like the supply level has some sellers. Need this momo to get engulfed south

Edit: Out -8 again. Done for the day

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