Hi Pete,
What is a textbook trade? 
Might I suggest you do some analysis and try and work out which trade heās on about, and post it, the clues are there in petefaderās post, you will learn quicker than when you just get told what it is.
We are here to help, but you need to meet the helpers half way, for your own benefit.
Since I took the same trade as Pete above and since I like pictures better I made an illustration. I know itās the same thing over and over but it may help the newbies to grasp it.
If you are asking what does ātextbook tradeā mean, it is a trade that fits all Peteās criteria perfectly.
- Itās a down move - H1 background is weak.
- High volume in the marked fib zone, price couldnāt linger there for long.
- After the down move started there was a nice ND (small body, lower volume than previous two)
The ever helpful SagiCZ :21: you are too kind! I mean give the man a fish and all that! but yes good graphic.
Two quick questions about that last trade:
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Do we trigger the trade when price drops below the ND candle? Or do we wait until the confirmation candle (the down candle after ND) finishes?
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8 candles after the our ND entry, we have another ND candle with confirmation. Would it also be a valid trade?
1)I usually set up a limit order at the low of ND (or high of NS). So the trade is triggered as soon as price brakes that level. For safer way to enter you could wait to see a reaction to the ND (price would be dropping) and enter using your judgment. Generaly the enter level is shown on the chart above.
- I canāt find the ND youār talking about so there is a big probability that you identified the candle incorrectly.
I also want to note, that answers to all these questions could be find in the old thread.
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I tend to trade on the breaks normally.
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Yes I suppose thatās a second chance.
Yes, technically itās not an ND, but the setup is ND, so Iād say it depends if you are going for an aggressive trade, like I keep saying, there will always be a discretionary element, IMHO.
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I usually wait for the close. I need to make a video on the ins and outs of ND/NS.
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Yes, all NDs are valid to take during a mark down until:
a. High volume demand shows up.
b. Entry price is too close to a previous support or fib zone.
c. Price is entering an area that previously showed demand (looking left).
d. Nearing an upper or lower trend line.
ā¦true as they said, it doesnt look like ther was another nd there.
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Whatever Iām trading, I enter on a break if the market is āniceā, but if itās a bit more spikey, Iāll wait for a close, Iām not saying this is wrong or right, itās just what I do. Todayās trade if Iād have traded it, would have been on the close. (I think!)
Iāve marked the ND that Iām seeing with red arrows. I would only consider entering upon it once it is confirmed with the following down-candle.
It has a volume lower than last 4 candles, but still higher Vol than the first ND. It would give a bad risk/reward ratio of about 29/20pips. These two are clear reasons for not taking in.
But I donāt really see it as technically not being a ND.
Agreed.
(extra typing for required minimum)
Thanks SagicZ,
Could you or someone specify in this example the case for weak backgroundā¦tksā¦I feel that noticing SV and ND are getting much easier but the spotting of weak background is still ephemeral ā¦
Nothing complicated. Today we were in a down trend (mark down) that [I]didnāt hit stopping volume yet[/I]. Itās simply trading in the direction of the 1hr phase. You could say, trend is your friend until stopping volume.
I would have to disagree. Itās markdown/redistribution. It would be better if you give some reasons why, if your going to make a post like thatā¦you are not a Jedi yet lol.
PS Re-accumulation only occurs when a markup pulls back.
Yes, I took late high volume as being potentially stopping volume, and there was a great NS setup on the 5min, for a safe entry, took some pips, but as I see this morning, not āproperā stopping volume, but thatās trading, itās interpretation, some assumptions, some facts, some rules, some discretion and dare I say it? - Some luck!!
LOLā¦:pā¦Sorry to laugh tehmac, but that tickled my fancyā¦partly because I do just that sometimes ā¦
You are perfectly right. I am very sorry to make confusement. I mistyped the word āreaccumulationā
Hello,
Should we compare our stopping volume to the most recent down move overall volume or the whole down moveās volume? It is only high if we compare it with the previous 9 bars. Is this valid? Will this up move be a shake out? I might have been wrong but I did not see background strength and took this stopping volume low. I did not find NS candles on 5 min too 
