Market Neutrality - A Thread/Trade Example ๐งต
I posted a tweet a few moment ago and feel it could be useful to open this out in a working market example.
(1/x)
I posted a tweet a few moment ago and feel it could be useful to open this out in a working market example.
(1/x)
On the ES earlier, we see price trading up into 4026.50 which we'd noticed was a clear H1 inflection point between SR.
Traditionally you'd be taught "if price trades into resistance, the direction is short".
(2/x)
Traditionally you'd be taught "if price trades into resistance, the direction is short".
(2/x)
Now whilst that may ordinarily be correct, however this is a clear S/R level and therefore a lot of traders will be looking at this level. For this reason we want to let the market show it's hand and not pre-empt the move.
(3/x)
(3/x)
So to get in with the short, I'd want to see structure break to the downside. I'd want to see a successful rejection and further bearish structure.
The key swings in the trend are the natural target.
This is idea 1 - The main, but not sole focus.
(4/x)
The key swings in the trend are the natural target.
This is idea 1 - The main, but not sole focus.
(4/x)
On the other side, knowing that every trader that's passed babypips will be looking for the sell, we're prepared for the level to fail and the market to look for higher prices.
(5/)
(5/)
To get long, we would want to see a failure of the level, followed by price re-claiming structure to the upside.
Again, key swing in the trend is the target.
(6/x)
Again, key swing in the trend is the target.
(6/x)
The key here is that we're looking for very specific thing to happen for entry.
We're not just sitting looking for any reason to buy or sell.
We are neutral and plan "IF-THEN".
IF scenario 1, THEN short.
IF scenario 2, THEN long.
(7/x)
We're not just sitting looking for any reason to buy or sell.
We are neutral and plan "IF-THEN".
IF scenario 1, THEN short.
IF scenario 2, THEN long.
(7/x)
When we look at the 15m, we see scenario 2 plays out. Scenario 1 does not, therefore no short entry.
(8/x)
(8/x)
This is where 90% of trades struggle, their emphasis is on trying to predict everything with the utmost precision and this causes them to be blinded by their understanding.
Trade what you see in the now, rather than predicting what might happen in the future.
(9/9)
Trade what you see in the now, rather than predicting what might happen in the future.
(9/9)
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