I have chosen to trade trend pullbacks only when they come to previous swing support and turn around but i’m finding that this doesn’t happen often. Many times this happens.
Looks like it bounced off the 31.8fib. My question is, with pure price action how on earth would you enter this long position? You could enter at the 31.8 fib and price could just go down to the 50 fib. You could enter at the 50 fib and price could go down to the 61.8 fib.
In other words, am I doing the right thing to keep out of the trade here. Price did not come down to the previous swing level so I was too unsure of when the right time would be to enter.
This is frustrating because I predicted this very up move yesterday and was bang on the money here, only that the pull back was not quite enough…
I do see the pin bar which could be a signal however I think it’s dangerous. You can see a smaller pin bar to the left. If I entered on that one I would have got stopped out by the larger pin bar.
I want to trade support and resistance and I saw none at that turning level so was it right that I left this trade alone.?
In a long winded round about way, you’ve answered your own question. I’ve pulled 2 quotes from your post & capitalised one word in the opening sentence that says it all.
[QUOTE=“Epidot;722386”]I have chosen to trade trend pullbacks ONLY when they come to previous swing support and turn around[/QUOTE]
[QUOTE=“Epidot;722386”]I want to trade support and resistance and I saw none at that turning level so was it right that I left this trade alone.? Thanks[/QUOTE]
You’re only going to trade when it reaches the previous swing support, price never got there so you were bang on the mon£y in leaving the trade alone as it clearly did not meet your system requirements.
What you initially wanted to do was jump on a moving bus as you expected it to go to X. Instead, what you want to do is wait for the bus to get to the bus stop (swing support) & check that the sign on the front (price action) says that the bus is going where you think that it’s going. By jumping on a bus thinking that it’s going to X, you could easily be wrong & it’s actually going to Y. You’ve got to check & confirm it.
I hope the analogy makes sense, I’ve been using a few as of late & I’m maybe getting a bit carried away.
Also, if you had entered at 31.8% Fib & price did retrace to the swing high, you’d be sitting at a negative balance. By waiting, you get a better entry. You might not get in every trade but the entry would better as is the probability of success from the trade.
Thanks that explains it perfectly. I see this as a sign of frustration which leads to a losing trader. As a new trader, monitoring this chart all through the congestion yesterday and today. for price to eventually pull back it is very frustrating to see price prematurely turn around.
I need to see this as simply an invalid trading opportunity and look elsewhere
You can set alerts so that when price reaches a set level, your computer will make a noise to draw your attention (hell, I think you can actually get text message alerts).
Anyway, you could set an alert to within 15-pips of your swing high & only pay attention once it gets close. The distance in pips of the alert is dependent on the TF you’re trading.
A watched pot never boils…well it does but it just seems to take so much longer. Alerts & a good book should make a more pleasant day for you.
Each trading day is new for us and if we want to become successful in our trading and also know about the daily support levels it is important for us to monitor them first
