lukx zline trading log + cfabian p.35 + adaseb p.48

[IN-XS]

Ok thank you cfabian, thats what im looking for now. And just to clarify when you say in the zone, what is your explanation of this? Sorry for all the questions, but thank you for your answers.

[cfabian]

Thanks again master dragon, very clear your explanation.

Just one question here along... weather the breakout is on the candle holding the # mark, or it can be on a consecutive candle? This arise my attention as many times long candles are the ones holding the # mark, making its breakout somewhat distant to where price is at the moment.

Hey Dragon,
Here's your chart where I made some comments.

The red circles show the points where at some point there were #2 or #3 values, before they were broken out. The question is weather you are alert to try to trade on the break out of the body of each one?

The second note is where your entry is... questioning weather you trade at the break out of the line in the very first candle, or wait till the next one to wick the line after price crossed it, and enter in that small retrace (in this case in the long bullish candle).

Thanks in advance.

This should be an answer to a lot of people who are struggling with the entry and the SL.

Lets start with a picture!


Lets say you are entering with a limit order at the 50% section of the H4 candle from where the lines are starting. That way you are entering without any view what price will do next!!! This is told several times but for those who don't have the discipline to wait put your SL at the bottom or the 0% section!!!

On the next picture i will give you other possibilities.



The white lines on this picture are the same as on previous picture drawn on the H4 chart. The red lines are the new analysis!
Now you can see what would have happened if you got in with a limit. It depends on what for trader you are if you like this or not!! I don't!!

The first blue candle gives you a hint of a possible change but you need to see first some things befor that candle will hold! Let that candle close and see what happen next. Put a line at the 50% area and if price hit that line and run away in the direction you want be ready to enter at body close or high!!! You will make pips immediately. Put your SL at the bottom of the candle with the drawings on!!! If the SL is bigger then 20 take it at your own risk. This was 18 pips. Lets tune the SL.



Now you can see how it is possible to tune the SL. You could have entered with a SL of just 8 pips and when you look up that was a nice RR
For targeting another difficult part. Every previous H1 open, close or 50% area is a possible stoppoint so be ready to close and try to reenter.

Dragon

is this trade correct acording to your explanation I quoted above

1h Mo Zone



5m entry of 1h MO zone



Thanks for your feedback

JUAN

Yes but try to make your entry after price came back. So you have your entry candle. wait for price to come back and then you enter. It is less drawdown

The points with the red circles are places where you can think of making an entry but it is you who decide to enter or not. What i do is pointing out where i would like to enter with high probability. This is drawn in yellow.

The entry i showed is very agressive and i don't recommend doing that. In the picture below you can see the right entry where i was talking about before. It is better to wait untill you see reverse, read other color, before you take the trade in another direction. That's just my experience. The entry place was also a double bottom visible on H4, H1 and even on M15 if you had a 22" screen.

[cfabian]

INXS,
Look at my previous post. There you can see the candle with the # mark, and it is inside (or touched) a mighty zone. That's what I mean by "in the zone".

Ok thank you cfabian, thats what im looking for now. And just to clarify when you say in the zone, what is your explanation of this? Sorry for all the questions, but thank you for your answers.

[IN-XS]

Oh ok, thank you! And that is a very good question you asked Dragon. I have been very confused on the right entry point, hopefully he will be able to clarify this for us.

[IN-XS]

I was going to go long here, but since it did not pass the half way mark on the big red candle to the left I thought I would short instead.

[IN-XS]

Closed that for a few pips, now im looking for a long again, looks like it could happen now, as the previous candle is a small red.

[IN-XS]

Going long, as the green candle is above the body and wick of the previous red candle. Is this correct or should it be above the 50% mark of the candle body to enter, if so I was a bit late!

[cfabian]

Looks like it is holding down. Be careful on price pace... it is moving really slow, so at this point down speed is faster than up speed. Probably this morning's news exhausted price action, and can be ranging during day long.

..... hey, you changed your flag from Britain's to Ireland

EDIT: Well... you're +40 at this point and speed increases. Good one.

Going long, as the green candle is above the body and wick of the previous red candle. Is this correct or should it be above the 50% mark of the candle body to enter, if so I was a bit late!

[IN-XS]

Yeah I noticed price was moving slow, so I closed my trades on EUR/USD and GBP/USD when they reached the top of the mighty zone. And yeah I changed my flag, as I am Irish, but I am living in the UK.

[IN-XS]

I should have held on a bit longer, it still had a bit left to go.