This trade took advantage of the movement within the Range Setup on the 4 Hour Chart of the 4 Hour Chart. Entry took place just below Resistance with the Stop Loss placed comfortably above it. Target of 160 Pips was initially set at Support, but I exited for a 102 Pip Gain instead as the market had not yet hit my target at the end of the established Holding Period.
These are the types of trades we can make until the market breakouts from the Consolidation at Support or Resistance.
One of the challenges faced as Swing Traders using Price Action, however, is determining whether to trade these setups using the Signals of the Daily Chart, 4 Hour Chart or simply entering at Resistance and Support. What I have found is that there are several factors that help us to make this decision but a major factor has to do with the size of the Consolidation.
With smaller Consolidations such as this, there is less volatility at the S/R areas, making entry there fairly safe. Your Stop Losses wont be affected by spikes and the movements to the other side of the boundary are usually fast and sharp. Entry using Candlestick Signals would not be wise because the size of the Candlesticks would take up a lot of potential profit.
When trading Large Consolidations, we should use the Daily and 4 Hour Chart Signals. This is because the market becomes a lot more volatile at the S&R areas as well as in moving towards the other end of the boundary. Entry based on a strong and clear Signal would be the better option to avoid unnecessary losses and maximize on the movements.
In Summary, the main aspects of the trade were;
- Trading within Consolidation Setups;
- Determining whether to trade based on Candlestick Signals or Support and Resistance;
[b]- Never Actively Monitoring the Trade until it is closed/Holding Period reached (helps to avoid emotional trading);
- Exiting Trades within established Holding Periods;
[/b]
Regards
Duane
DaddyPapi
These are the types of trades we can make until the market breakouts from the Consolidation at Support or Resistance.
One of the challenges faced as Swing Traders using Price Action, however, is determining whether to trade these setups using the Signals of the Daily Chart, 4 Hour Chart or simply entering at Resistance and Support. What I have found is that there are several factors that help us to make this decision but a major factor has to do with the size of the Consolidation.
With smaller Consolidations such as this, there is less volatility at the S/R areas, making entry there fairly safe. Your Stop Losses wont be affected by spikes and the movements to the other side of the boundary are usually fast and sharp. Entry using Candlestick Signals would not be wise because the size of the Candlesticks would take up a lot of potential profit.
When trading Large Consolidations, we should use the Daily and 4 Hour Chart Signals. This is because the market becomes a lot more volatile at the S&R areas as well as in moving towards the other end of the boundary. Entry based on a strong and clear Signal would be the better option to avoid unnecessary losses and maximize on the movements.
In Summary, the main aspects of the trade were;
- Trading within Consolidation Setups;
- Determining whether to trade based on Candlestick Signals or Support and Resistance;
[b]- Never Actively Monitoring the Trade until it is closed/Holding Period reached (helps to avoid emotional trading);
- Exiting Trades within established Holding Periods;
[/b]
Regards
Duane
DaddyPapi
