Mira wrote:aliassmith wrote:Mira wrote:
Momentum creates Z-Lines.
If i only knew it 4 or 5 years ago... lol just kidding
Chickened out the first trade and gave 8 pips to the market
Well a candle closing above/below the extreme of the previous candle creates a break-out. A break out is where many people enter the market. If many of the people enter the market near that break-out then that is where the zero-line or break even area is.
Momentum can be an indication of how many people/money/orders were interested in that break-out and direction.
Large break-out plus high volume = momentum?
Large break-out plus low volume = low liquidity?
Even small break-out candles can spark a new leg on the chart.
We still need to consider market context to increase our probability.
Got it, thank you Alias!
That sounds a lot like VSA, I’ve been on it for a little time some year ago.
Is volume a reliable datum if using a broker dealer?[/quote]
I guess it does sound like VSA a bit. You can see more reliable volume in futures, stock, etc. You don't need volume in Forex really I was just putting that out there as something to think about. Consider market context and not blindly picking an extry. If you are blindly pickinging an entry then consider a small position and build it based on how the market behaves. You don't have to be so great that you make 1 entry and 1 exit. Try multiple entries and multiple exits over the same move. I don't do single entries or exits anymore. Consider entering where the check marks are. If it went lower I would have made another entry.