Happy Friday everyone! I hope you all had a great trading week. I’m making this post with the goal of showing some quality examples of concepts discussed in my “How I Trade” video as well as the trend discussion from Tuesday’s Newsletter.
This post will be open to the public, so if you’re new here please make sure to watch my “How I Trade” video before continuing.
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A Quick Overview:
As you know, my style of trading utilizes dual timeframe analysis to find low timeframe entries within higher timeframe context. I use a combination of EWT + S/D on the higher timeframes to determine the context and proceed to use S/D, market structure and a few other tools to obtain lower timeframe entries. This is a “thesis -> confirmation” system.
Broader Context:
- Heading into Thursday’s session the broader context was BEARISH. The thesis I was operating under was that the next leg down was beginning. Keep this context in mind as I go through the trades…
Trade 1: $NQ SHORT
Identifying the Area of Interest:
- This trade was not a big winner as I did not get continuation on the runners, but this is a great example of “Area of Interest -> Reversal Structure”, within the context of a broader bearish count/trend
Trade 2: $NQ LONG – SCALP
- This trade was a great example of TREND shifting. The micro trend flipped up as the LTF trend also shifted which allowed for a LTF pullback entry. Since the broader context was still bearish this was only intended as a scalp, rather than holding runners for a high timeframe target.
Trade 3: $NQ LONG – SCALP
- Today’s trade is another example of a LTF trend shift. Again, this was only a scalp as my broader bias was bearish (yes, you can take trades against your main bias).
As we all know, price continued another 150+ points after my exit… I flattened into supply per my plan and waited for a reversal that never came. On one hand, I followed my plan and captured a win. Rather than blindly flipping short from supply I waited on a proper reversal structure (which never came) so I also avoided a loss despite my general thesis being incorrect….On the other hand, I missed out on an extra 150pts of upside — could I have found a way to hold runners with trend based stops? This is something for me to study, I am not perfect…yet ;)
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Thank you all for reading! I hope this helped display how I operate on a day to day basis. While these three trades were winners, rest assured that I had a couple losses this week too – but thanks to LTF entries within a higher timeframe context, my losses are always smaller than my wins… No matter the style of trading you use, understanding trend, market structure and utilizing dual timeframe analysis can be quite effective. Have a great weekend!