Price, as you might know, is fractal in its movement. Typically, price will move from a significant swing high to a significant swing low and vice versa. When price breaks to the downside/upside of a significant swing low/high it is to capture liquidity available beyond that region.
Look left and you will see the swing low which I used to predict the reaction at 0.6861. The market had taken out the liquidity above and therefore it continued to move beyond the swing low. This was an analyzed probability that prompted me to suggest that you could trail your stop beyond 0.6861.
It is difficult to explain how I arrived at that exact price point without providing you with a lot of background information first. That is not something I can do in a forum setting as it requires me to show you charts and walk you through examples of the concepts that you would need to familiarize yourself with in order to conduct precise price action analyses. And even after you gain that knowledge you will need to study and practice quite a bit to get to that level of analysis. It is for that reason that the PA concepts discussed in this thread are very rudimentary.
Howdie nice post Quadpip; do you or anyone have the exact trading methodology that Larry Williams used; I had been trying to find that out for some time; but from the sound of it, he must have traded with the trend and just continually scaled in over and over, building positions overtime etc…?
An acquaintance had claimed to have been under the tutelage of Larry Williams. He stated that Larry used market structure and price action to trade. However, this is hearsay and I have no way of verifying that person’s claim or the methodology that Larry Williams used.
I know that Larry authored several books. Perhaps he outlines his strategies in them?