Quote from Anekdoten:
Filtering for Confluence and a temporary farewell
I don't take just any failure, or just any reversal pattern. There must be a solid reason for me to enter a trade and risk my capital. Just because I see an M top does not mean I will take the short "confirmation", just because I notice a W formation does not mean I will go long on the "confirmation". In short, I need to see the green light from the anchor chart and receive an "ok" from the big guy, the big picture, that the play has good potential. This is precisely how you place the odds in your favor.
I filter my trades to increase accuracy, I examine the entry chart to use small but efficient stops and I use the anchor chart to make sure I'm on the right track.
Notice how price is "rallying" into resistance but you, the predator, must wait for that rally to fail, and confirm that it failed, to short it based on the "big picture analysis", the anchor chart.
When unaware of what you could possibly use for targets, use the anchor of the anchor chart, otherwise known as the daily chart but usually the anchor chart itself is good enough if you got multi days in your data display.
Here is a chart illustrating the above and this is how you take your price action trading skills to the next level.
This will be my last post for a while as I give the journal a temporary rest, feel free to discuss among each other.
This, my friends, is the only "holy grail" you will ever need.
Good trading.
Anek
