Price Action Trading Method.

[shrigsm]

what difference between 24 feb 6.25 two candle on upside
and 24 feb 7.05 three candle on upside
why traderdude not trade or not take long position on 24 feb 6.25 upside candle

 

[4xpipcounter]

Shrigsm, if it is the TL you were referring to for a potential trade, then it was not drawn right. I knew it with a cursory glance at your chart.
Notice how the TL cuts through that large candle. If you are trading the TL break, then still not trade has been yielded, because in trading it, you are looking for a correction back to the TL, and then you enter. You can trade the moment of the break, but it is very risky, because you do not know for sure if the break is the real deal, and there always is a correction back to it, then trend resumption.

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[4xpipcounter]

I know the answer to that, but I'll let him answer it, because I don't want to take over his thread.

what difference between 24 feb 6.25 two candle on upside
and 24 feb 7.05 three candle on upside
why traderdude not trade or not take long position on 24 feb 6.25 upside candle

 

[4xpipcounter]

BTW, I can see you are new to the forum, and you are asking some really good questions, so just keep plugging away.

what difference between 24 feb 6.25 two candle on upside
and 24 feb 7.05 three candle on upside
why traderdude not trade or not take long position on 24 feb 6.25 upside candle

 

[shrigsm]

ohk
as i seen on my gold chart i have draw TL on HH to LH candle then extend right only

 

[rkgoyal_98]

Shrigsm, if it is the TL you were referring to for a potential trade, then it was not drawn right. I knew it with a cursory glance at your chart.
Notice how the TL cuts through that large candle. If you are trading the TL break, then still not trade has been yielded, because in trading it, you are looking for a correction back to the TL, and then you enter. You can trade the moment of the break, but it is very risky, because you do not know for sure if the break is the real deal, and there always is a correction back to it, then trend resumption.

image hosting png

Sir i get stuck some time on drawing trendline only in Your chart i see trendline passes the middle of candle but as i draw it with the same starting point and joining high of 5th candle its position become different.
Similarly if we go little further left join the peak of Aug 11 with that of Oct 11 then position of trendline will be diffrent
So what should be the correct point to start the line??

Regards

 

[4xpipcounter]

Rkgoyal, you drew yours right. I drew mine wrong.
I just proved how easy it is to overlook details. From the peak to the 1st swing high is how the dots should be connected.

@Shrigsm, thanks to Rkgoyal catching the mistake, I also wrong he saying there was no trading opportunity yielded on that break. The next candle corrected perfectly to the TL, which means the next candle would have yielded a perfect long trade.

Rkgoyal, thanks again for pointing that out.

Sir i get stuck some time on drawing trendline only in Your chart i see trendline passes the middle of candle but as i draw it with the same starting point and joining high of 5th candle its position become different.
Similarly if we go little further left join the peak of Aug 11 with that of Oct 11 then position of trendline will be diffrent
So what should be the correct point to start the line??

Regards

 

[TraderDude]

why u not make trade on 24 feb 6.25 when two candle go up side
is there u know price will make new bottom or low ?
can u describe u r trading TA about price action pls

shrigm, you must see where you are on the daily first before day trading..

2200 was good support on friday and all you needed to do was look for PA confirmation @ 2200.

 

[TraderDude]

what difference between 24 feb 6.25 two candle on upside
and 24 feb 7.05 three candle on upside
why traderdude not trade or not take long position on 24 feb 6.25 upside candle

Not really sure which candle you are talking about..can you highlight it on the chart..

 

[TraderDude]

Shrigsm, let me jump in here and possibly add something to what TraderDude is going to tell you. In viewing price action only, you have no way of knowing that price was going to move lower from your point. He drew that line at the bottom, because that is the entry, because it broke a swing low.
From the point it is now, you know it will drop further. A conservative estimate of where it is headed is to measure the distance from the swing low that it broke to the recent swing high. Take 61.8% of that, then subtract it from the swing low, and that is where price is headed, and most likely it will go lower than that.
In using price action, you are not looking for the perfect peak or valley to enter. In trading price action there is very little pullback on your trade once you master it.

wow 4xpipcounter, you sure are a complicated trader...:lol: