As in price action we look for H (high), L (Low), HH (Higher High), HL (Higher Low). This combination tells market is trending up. By current chart, we know ongoing HL is a correction. It will going up, the question is " from where " and where it will be going up to.
Since I want to trade with lower risk, I will find internal structure inside structure above.
Yesterday I show you the H4 structure. if H4 structure is still to big for me, then I will dig deeper to find structure that suit my appetite.
For example I got internal structure on H1. I have identified an internal support, then my next move will be waiting for reaction on blue area. As long as the price doesn’t break external support, we are still on the same game.
hi @tomo22, I’m not really agree with Elliot Wave, but I learn wave theory a lot. I share of a scanned version my my book.
Econometric is quantitative process of economic data by using math and statistic. I’m a very logical person. I won’t trade base on “feeling”, only by data (number).
Bellow is one of the methods:
Hi @tomo22, a lot of thing you need to know to implement econometric. It’s not easy, but it’s extremely worthy.
you need to learn about statistic, normal distribution. You need to have math model, or possible you need to implement neural network. Information on chart have to be examined to have the best approach for the instrument.
I show you part of book as an example:
You need to be creative to and able to get helicopter view from the market.
I’m not advising you to learn this for now. You have to build your knowledge base and skill to reach here. I believe you can, as you are still young. You need to have programming, math, and data analysis skill with good knowledge about macro economic.
A lot more things actually. I don’t want to explode your mind with flooding with information that you are not ready yet
All sounds really interesting but complicating. I’ve studied basic statistics like time series, SD, ND, Zscore all of that stuff. Why do I need to understand programming to help me trade successfully?
I’m also abit stuck what do you think I should try and learn after I’ve mastered internal and external structure in terms of drawing up SnR?
Having programming skill will help you to evaluate a model, extremely fast. You will try multiple model and it will speed up your learning progress. I never know other way to have this.
Don’t think too much for now. Try to improve your trading skill for now. Too many thing will give you distractions and you won’t be able to manage your skill and mentality.
Honestly, your question are determine how you are having urges to have things in fast track. With this mindset, you won’t be able to sustain from market. A trader needs to have tranquility and less emotion. They only do and learn. Focus more what you have now and improve them. You may have many concept, but dont bother them too much. That will be path for you in the future.
here’s my trading setup right now. I found some external SnR at 1D and then zoomed into a 4HR and found some resistance (strong). I was going to zoom into 1hr but I found that to not be as useful as 4hr as 4hr showed me some great market structure. Ive identified an uptrend.
As you can see, we wait for next move to break this structure. As the price is hovering above, we can look for opportunity to short as long as it doesn’t break and stay above external resistance. The opportunity should be from structure of lower time frame.
If the price break external resistance and candle close is above the resistance, It will be trend continuation. We need to redefine new market structure.
Hi, I’m having some trouble not sure if it’s my LTF of 1 hour but I seem to be getting stopped out all the time even when I have a large SL. What I mean is the trend goes against me. I’ve just noticed this on a 1 hour tf should I resort back to my original 4hr TF for internal SnR and use it daily for external SnR?
if I am to move to a 1hr TF again what are some tips to not always get stopped out or how to avoid losing my trades. I try to follow the trend however, I just get stopped out. Ill try resort to 4hr
Hi @tomo22, hit by stop losses frequently means, you miss out something from higher time frame. You need to learn a lot how to use higher tf analysis to get profit from lower time frame.
If you’re going to trade from H1, make sure you understand global structure or at least H4/D1
Trading lower tf will give more opportunities but has also many traps. Focus in get knows your instrument in detail.
I traded this because it was near external SnR (1d) and the chart produced doji candesticks signifying exhaustion in sellers. I went to take this trade and failed
Base on chart we know market is still under the influence of up trend. Temporarily, it’s moving sideways. If the price doesn’t break 0.9012x, any reversal on breakout in between the range 0.9012x - 0.9197x can be taken. Remember the longer the sideways, higher the risk will be.
If you want to trade, the breakout inside the range will be the key. Look at bellow, breakout on H1 Chart
Pay attention to the red line in the middle. That’s the area of long and short. Above the line is shorting area, bellow the line, long area. So we can filter out the breakout outside the area. It becomes:
You can see … it has 1.5 RR. If you look for lower TF, you will have better RR, possible to run for 1:5. Bellow is the example when you use M15. You can have 5RR for short, and 4RR for long.
