The power of market consolidation, market trend and market comfort. Which way will the market go ?
Being a zone trader, which allows for market profile, support and resistance, supply and demand and any other way of determining key levels in the market is obviously step 1. But when it comes to day trading/scalping and short term positions. What tools do you use to determine if the channel will break ? trend will continue ? a fake out ? or an all out reversal ?
Personally I trade the reversal, with a tight stop with a 3 minute reversal candle forming, divergence/convergence with market delta volume. Also look at candle patterns and just the way the price is behaving. With more rapid movement (rejection) large wicks, or even when price hovers at key levels I close the position to avoid a big thrust through the zone to continue trend.
Would love to hear some ideas on how to fine tune this idea.
Being a zone trader, which allows for market profile, support and resistance, supply and demand and any other way of determining key levels in the market is obviously step 1. But when it comes to day trading/scalping and short term positions. What tools do you use to determine if the channel will break ? trend will continue ? a fake out ? or an all out reversal ?
Personally I trade the reversal, with a tight stop with a 3 minute reversal candle forming, divergence/convergence with market delta volume. Also look at candle patterns and just the way the price is behaving. With more rapid movement (rejection) large wicks, or even when price hovers at key levels I close the position to avoid a big thrust through the zone to continue trend.
Would love to hear some ideas on how to fine tune this idea.
Learn, a forex trader must, unlearn and relearn he will.