Scalping: 3LZZ DSR

[aliassmith]

Back to it, a lot to unpack.

It's getting messy to write everything I want on the chart so I hope it still reads well.

A few missed trades, a few 'off' entries, and new questions

I think I need to trust some zlines more. #4 and #5 should've let them get to 1.

#6 I don't know if it was a valid entry though, not sure if that was a true zline or not (I can think of it like that if I think of the move as the 2 momentum candles maybe). So not sure if it was a zline and just didn't work or not.

As another observation, I plotted another zline, or what I think it is. That move broke the SR dots and price came back almost exactly to it. Didn't take that one either.

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Exits on #6 and #7 to reduce the size of the loss I think were ok but maybe I'm wrong.

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Question regarding the HH,HH,LH entry: Is the entry done at the break of the LH candle's low in the "next" candle (like trade #1), or in the same candle (like trade #3)?

Also just realized there is no trade #2, so there were a total of 6, not 7 trades that I took.

All in all a total of 1.1R ish; could've been much more.

GU_07112022_1.png

Hi!Good for you. 1.1R!
Congrats...
If you have that every day you have a 20% account gain per month!

I don't really see a HH, HH, LH trade. Those are reversal trades.
And if trade No1 is such a setup, it's not possible for trade 3 to be one again because we are still going down.

Trade 1 and 3 were continuation trades. Ask yourself....what would you like to see before you believe price is resuming it's trend?
I try to write it down in my log and hope to be able to tell what works best for me when I have enough history.

Do you still use the dots? And if so...how?

"I don't really see a HH, HH, LH trade. Those are reversal trades."

My understanding of this was that it was on a candle-by-candle basis. In order for me to say that the pullback is over I need to see that price went up (HH, HH) and failed to go up (LH), so I take the break of the low of the candle that failed to go up. That's the short entry here:

GU_HHHHLH_1.png


And if trade No1 is such a setup, it's not possible for trade 3 to be one again because we are still going down.

We are, but I see a pullback there as well. I guess it all depends where you measure it from.


Trade 1 and 3 were continuation trades.

Wait, maybe I have the names wrong. I see the candles (candle by candle) making a higher high, higher high, and lower high. Isn't that a HH,HH,LH entry for a continuation trade? (ie: entering after the pullback ends?) If not, how would the entry method be on those smaller pullbacks or how are they called?


Ask yourself....what would you like to see before you believe price is resuming it's trend?

Price failing to "push the price" in the opposite direction. For example if I'm going short and I see price making the smaller swings highs (relative from the newest lows I'm looking at), and at one point failing to keep moving up (not longer making new highs at the current swing).


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My definitions might be scrambled all around (either due to a language barrier or lack of knowledge). In any case if there's something that I'm not calling properly let me know

HL HL LL
&
LH LH HH

The inside part of a curve

[Yirbu]

HL HL LL
&
LH LH HH

The inside part of a curve

Ah...like Jhx said...on a bar by bar bases.
So it's a 3bar fractal. Going to look into that. I don't think I am actively using that in. my entries.
Thx!

[Jhx]

Hi!Good for you. 1.1R!
Congrats...
If you have that every day you have a 20% account gain per month!

I don't really see a HH, HH, LH trade. Those are reversal trades.
And if trade No1 is such a setup, it's not possible for trade 3 to be one again because we are still going down.

Trade 1 and 3 were continuation trades. Ask yourself....what would you like to see before you believe price is resuming it's trend?
I try to write it down in my log and hope to be able to tell what works best for me when I have enough history.

Do you still use the dots? And if so...how?

"I don't really see a HH, HH, LH trade. Those are reversal trades."

My understanding of this was that it was on a candle-by-candle basis. In order for me to say that the pullback is over I need to see that price went up (HH, HH) and failed to go up (LH), so I take the break of the low of the candle that failed to go up. That's the short entry here:

GU_HHHHLH_1.png


And if trade No1 is such a setup, it's not possible for trade 3 to be one again because we are still going down.

We are, but I see a pullback there as well. I guess it all depends where you measure it from.


Trade 1 and 3 were continuation trades.

Wait, maybe I have the names wrong. I see the candles (candle by candle) making a higher high, higher high, and lower high. Isn't that a HH,HH,LH entry for a continuation trade? (ie: entering after the pullback ends?) If not, how would the entry method be on those smaller pullbacks or how are they called?


Ask yourself....what would you like to see before you believe price is resuming it's trend?

Price failing to "push the price" in the opposite direction. For example if I'm going short and I see price making the smaller swings highs (relative from the newest lows I'm looking at), and at one point failing to keep moving up (not longer making new highs at the current swing).


---

My definitions might be scrambled all around (either due to a language barrier or lack of knowledge). In any case if there's something that I'm not calling properly let me know

HL HL LL
&
LH LH HH

The inside part of a curve

Ah so you're looking at the bottom wicks for shorts and top wicks for longs?

I was only using it for the entry candle, I had the "pattern" the other way around using the outside part of the curve. I was waiting for price to stop making new highs before going short, instead of looking for price to make a lower low.

[aliassmith]

"I don't really see a HH, HH, LH trade. Those are reversal trades."

My understanding of this was that it was on a candle-by-candle basis. In order for me to say that the pullback is over I need to see that price went up (HH, HH) and failed to go up (LH), so I take the break of the low of the candle that failed to go up. That's the short entry here:

GU_HHHHLH_1.png


And if trade No1 is such a setup, it's not possible for trade 3 to be one again because we are still going down.

We are, but I see a pullback there as well. I guess it all depends where you measure it from.


Trade 1 and 3 were continuation trades.

Wait, maybe I have the names wrong. I see the candles (candle by candle) making a higher high, higher high, and lower high. Isn't that a HH,HH,LH entry for a continuation trade? (ie: entering after the pullback ends?) If not, how would the entry method be on those smaller pullbacks or how are they called?


Ask yourself....what would you like to see before you believe price is resuming it's trend?

Price failing to "push the price" in the opposite direction. For example if I'm going short and I see price making the smaller swings highs (relative from the newest lows I'm looking at), and at one point failing to keep moving up (not longer making new highs at the current swing).


---

My definitions might be scrambled all around (either due to a language barrier or lack of knowledge). In any case if there's something that I'm not calling properly let me know

HL HL LL
&
LH LH HH

The inside part of a curve

Ah so you're looking at the bottom wicks for shorts and top wicks for longs?

I was only using it for the entry candle, I had the "pattern" the other way around using the outside part of the curve. I was waiting for price to stop making new highs before going short, instead of looking for price to make a lower low.

Yes

[Jhx]

Patterns and breakouts to try and understand how to 'follow' price. Or at least what I think they are.

I marked areas where price closed within those tight areas multiple times.

There were more, but there has to be a criteria to see which are 'better' than others. Assuming that these are even patterns

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[IgazI]

If you ask the right questions then you will find the answer within yourself:

Is this a breakout? Where did it come from?
Is this a breakout? Where did it come from?
Is this a breakout? Where did it come from?
Is this a breakout? Where did it come from?
Is this a breakout? Where did it come from?

Yes, there are breakouts everywhere, but which breakouts stand out to you as price moving from 'somewhere'?

Ask these questions over and over and you will see it.

I might mark the chart a little differently than you, but that doesn't mean that I am right and you are wrong.

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[Jhx]

I marked what I consider to be the 'significant' ones; I'd find a candle that jumps out within the previous candles and try to see where it was breaking out from. Again there are more but this is what I see.

Each box is the pattern that I see the breakout from (congested areas), and the lines are pointing to the candles that made me see the patterns before them.

There are probably more, or better ones. The 'boundaries' of each box might be iffy; taking trades at those levels could really go both ways. Like, it seems to be really congested until it doesn't

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[Jhx]

I was looking for a specific post but didn't find it; came across this one from MO though.

Is this the same concept that you're talking about Igazi? Is this the way you view patterns and breakouts?

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[Jhx]

After reading don's post in Alias' thread, I kinda had an idea. These days I've been really thinking what is it I'm doing wrong in my learning process, and then it hit me that it wasn't something that I was doing, it was something that I'm not doing. I never compared charts. I can take a chart of a trading session, but a single day isn't going to give me the answers (because an entry can be either a winner of a loser regardless); and if I don't look back at it then it's information that my brain couldn't really assimilate. Trading seems like a very visual thing when all the trades we take are based on what we see on the chart, so I need to train my eyes.

Still, taking my time to trade 3 hours this 2 weeks made me realize that in this 3 hour window there can be good profitable trades, in most cases to end the day positive. Each trade I take doesn't have confidence behind it, and it's 100% like don said; I need the stats to build confidence.. That post by don made me take action.

So what I'm going to do is a 'learning' plan: I'm going to do something that I think might work for my brain and eyes. I'm going to mark 100 charts, the last 100 trading sessions in this 3-4 hours I have to trade; one chart for each session. As I said there are very good trades within that time. So I'm going to mark them up, the entries, how much they can go in profit, when they hit a stop (and where they hit them). Then I'll start looking what they have in common.

And then I'll study them, and I'll re-watch them again, and again, and again, and compare, and keep studying. The entries are there every day, it's not 'magic'. I need to problem solve, train my eyes and be able understand when to take them. Maybe throw a few candle by candle backtests from any of those days to speed up my learning curve, and keep trading my current session. I really believe that it will get to a point where my brain will understand when the chart looks a certain way. And I won't be curve-fitting anything because it's like a brain trick; I wouldn't be able to remember exactly how each date would look like, so my brain will take care of the rest and eventually say "this looks a bit like on of those cases where the entry gave profit" .

I can't say if this will work or not, but in my head it's really worth doing. Who knows. Maybe this is what I needed

[IgazI]

I was looking for a specific post but didn't find it; came across this one from MO though.

Is this the same concept that you're talking about Igazi? Is this the way you view patterns and breakouts?

EURGBPH1.png

Yes. I posted another example in the Chartbook thread.

Once you realize that a chart is only breakouts and "things behind breakouts", some pattern with a fancy name, then trading gets a lot simpler.

The #2 of the 1-2-3 pattern will always be a breakout.

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As I said, patterns and breakouts exist on all chart periods; you can zoom in, you can zoom out, but what moves really stand out to you? trade those.

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