adaseb wrote: dragon33 wrote:
Are we all know that not all H4 mighty-zones actually work out. Sometimes it can pullback in a region where we would normally short/long and then trick us and stop us out.
When do you decide that a particular MZ didn't hold and time to consider the trade failed?
When price is running to the openprice or mightyzone and stops at the open price the first target for me is back the 50% if at that area forms a new H1 in the direction to open price then the chance of breaking is big.
I take my trades in peaces and i always use the H1 bodies to target or the 50% areas on H4
After targeting i do not try to reverse because you will burn your ass a lot, you only can do that when there is high volume in the market.
In this picture you can see price bouncing between the lines. When price stays in the range of the market candle i assume there will come a BO or a test of the same level. For BO compare the candle en the strengt of them, time and speed are always important.
So what are you saying is that you don't want increasing momentum into the Open-50% area because the chance of BO is higher.
If that happens you don't take the trade?
Yep that is correct you do not short after that H1 and if you do take attention that openprice or 50% af that H1 is target. Lets assume that you take the 50% is it the risk worth?
I would wait to see what happen after the H1 an looking to go long again.
If price does not close outside the open price of the rising H1 yes i would defenitely go long.
Try to draw those lines on any significant H1 (bigger body then previous) body and observe how price acts around those areas you will be amazed how easy it is to scalp every other hours some pips.
If you are able to combine those drawing with H4 then you have a clue where price probably will run higher or lower.
In the picture below it is your situation but on a M5 chart and see what i mean. It is worth trading after a momo candle just be patient. Lets assume the H1 would have closed a bit lower. You would have waited again and see what price would have done while running up where will it close 50% or open if so take the trade it is that simple
Trading is like cycling, first you need to learn how.
Two options: you either lose or win!