A simple price action approach

Let's push our understanding of PA at trendlines a little bit. Today I'm going to show you what I call a nuance entry. This is a more risky trade and not recommended if you're a beginner. The nuance entry is your basic trendline touch entry, which is the height of simplicity and it works, provided price is respecting your channel (which you likely won't know until later lol).

You can see that every one of our "regular" trendline entries started out as a nuance because you never know if price is going to pierce the trendline or not. Use this one with caution as you can already make very good profits using the normal entry.

Also note the psychological games that are played at these trendlines. Look at how price shows it's starting to respect the trendline but before the actual move there's a stop run or strong spike against our intended direction. These spikes are intended to throw you off, hit your stops or make you do something stupid. Stop placement is important here as you always want it above the swing high that marks your entry (for a short) or below the swing low (for a long). Expect to be messed with at a trendline.

Some PA from yesterday in the 6e:

5min_6e.png


And from today:

5min_6e_2.png


metal
 
Thanks for the good post Metal.

At what point do you start taking counter trend signals. With the benefit of the hind sight I can see that one can switch from drawing UTL from DTL. For example in your 2nd chart. when price did a HH around 14:00, I would have redrawn the UTL with the 2nd pivot of the utl to the new HL & still would be looking for longs. But in your case you drew the DTL & taking shorts.

Thank you for the good examples.
Buster
 
Just took this long on 6e. Stop is under those two double bars sticking out through the trendline. Target is in the 1.4274 area at this time.

live_long_6e.png


metal
 
Quote from metal:

Let's push our understanding of PA at trendlines a little bit. Today I'm going to show you what I call a nuance entry. This is a more risky trade and not recommended if you're a beginner. The nuance entry is your basic trendline touch entry, which is the height of simplicity and it works, provided price is respecting your channel (which you likely won't know until later lol).

Also note the psychological games that are played at these trendlines. Look at how price shows it's starting to respect the trendline but before the actual move there's a stop run or strong spike against our intended direction. These spikes are intended to throw you off, hit your stops or make you do something stupid. Stop placement is important here as you always want it above the swing high that marks your entry (for a short) or below the swing low (for a long). Expect to be messed with at a trendline.
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This style of trading requires a proven track record of calm, disciplined trading and the ability to trade in the direction of a trend. If you've broken your rules more than once or revenge traded at any time in the past couple of months, DO NOT attempt this style of trading because it will mess with you psychologically.

Thanks to you and this thread, metal, I've been using this tactic a lot lately. It's especially effective early on, draw your channel lines as soon possible. As the channel matures, there are more head fakes. In fact, I now play the off stop runs when the channel becomes obvious to even legally blind traders :p
 
for those that use Quotetracker, have you used the Regression Channel indicator feature? i tend to be lazy and i like how QT does the work for me. :D
 
Quote from JamesBond007:

for those that use Quotetracker, have you used the Regression Channel indicator feature? i tend to be lazy and i like how QT does the work for me. :D
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Would you please post a few charts to show how that looks
 
Great examples Metal. Just wondering why you don't adjust you channels as per attached chart. Also do you use levels or just channels.

The arrows show back tests on the channel line.
 

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