IN THIS THREAD: IronFist learns (the elusive) PRICE ACTION
- Thread starter IronFist
- Start date
You took the last trade at Point 6, not Point 5.
I would have taken it after point 5. You would have potentially made some money on the trade depending on what your exit strategy was. I know I haven't discussed exits yet, but I wanted you to try getting used to entering either after point 3 or 5 first.
It took me a minute to decipher your chart and understand what you did because it's been a long time since I used candles. As I said, for me they muddy the chart, but once I saw when you took the short, I could see that you waited until another turn, Point 6.
Anyway, hope this helps and let me know whether point 3 or point is the better entry technique for you/
In hindsight it was point 6. But at the time I wanted to make sure the downtrend was continuing, and I couldn't tell if the retracement (from point 4 to point 5) was done until it went down from point 5 a bit.
I hope I explained that well.
I feel like in order to enter at point 3 or point 5 would require picking the top or bottom. Please correct me if this is wrong.
I don't know when point 5 has happened (in a downtrend) until price continues to move down from it. I just happened to pick the bottom which ended up being point 6. If price continued to go down after i entered, then it would have looked like i entered right after point 5 correctly.
Im confused how you know to enter at point 5 before price resumes its downward action. Or rather how you know where and when point 5 is occuring until it's after the fact.
Im confused how you know to enter at point 5 before price resumes its downward action. Or rather how you know where and when point 5 is occuring until it's after the fact.