This is what we look for - A clear HTF bias, coupled with a LTF liquidity level that, if taken, will offer us an excellent R:R trade.
More specifically here, I am looking for the LTF sell-side liquidity to be taken and a quick/high volume reclaim - proving both intention of buyers and failure of sellers.
Without that move, we can still take a trade - however we will be missing 2 key parts to a good trade entry:
1. Much less confirmation. Liquidity still sitting below a clear level (even if LTF) that will want to be targeted at some point
2. Risk level further away and bunched up. The HTF risk level that we would have to use as our stop would be coupled with many HTF traders as it would be the last swing low. That leaves us sitting at an obvious stop and also limits the R:R of our trade in the first place.
Patience here. If our plan plays out, we will be happy with a win or loss. If we force a trade without the necessary confirmation, we will be okay with a win (though you will be taking immediate profits because you're never sure when we'll swing back to this liquidity) and the loss will just get us into a deeper hole on our journey toward respecting our rules and creating a profitable system.
Happy Trading :)
More specifically here, I am looking for the LTF sell-side liquidity to be taken and a quick/high volume reclaim - proving both intention of buyers and failure of sellers.
Without that move, we can still take a trade - however we will be missing 2 key parts to a good trade entry:
1. Much less confirmation. Liquidity still sitting below a clear level (even if LTF) that will want to be targeted at some point
2. Risk level further away and bunched up. The HTF risk level that we would have to use as our stop would be coupled with many HTF traders as it would be the last swing low. That leaves us sitting at an obvious stop and also limits the R:R of our trade in the first place.
Patience here. If our plan plays out, we will be happy with a win or loss. If we force a trade without the necessary confirmation, we will be okay with a win (though you will be taking immediate profits because you're never sure when we'll swing back to this liquidity) and the loss will just get us into a deeper hole on our journey toward respecting our rules and creating a profitable system.
Happy Trading :)
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Weekly 'In the Trades' Newsletter - My favorite tradable setups right to your inbox!
betweenthetrades.substack.com
betweenthetrades.substack.com
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.