Buy Low Sell High is a straightforward concept in trading that must be adopted if we wish to be victorious. If all trades can adhere to that chances of winning will be guaranteed.
The main issue lies in what is to be defined as ” high” and “low”?
Also, if I wish to see immediate profits, or if I do not wish to see paper drawdown before winning, then I need to much better timing to get in at a price which I am satisfied with.
I believe with improved understanding and application of these 2 aspects, I will finally be able to complete the missing jigsaw of my trading learning journey.
In this chart , I seek to acheive clarity of the “NOW”. If i want to get the next 50-70 pips , where does it come from ?
If i want to avoid a paper drawdown, where will be the best place for entry?
To answer this question, I need to have a guage , or a fuzzy estimation of what is high or low for price.
With trend with momentum
this combination is best seen on the left side when h4 boxes are aligned with h1 box. Any retracement within h1 box will be best suit to rejoin dominant trend and will see immediate profits.
With trend against momentum
I define momentum as h1 boxes. It is easy to win when both h1 n h4 are aligned. The problem comes when WRMB becomes subconscious such that I start to see wrmb possibility when there are any flat boxes.
On h1 , boxes are up, so any short will be against momentum.
With this, I will now rate momentum as > trend, as it is momentum that gives me the immediate profits, but it is trend that allows me to ride the trade.
With this, I rather look at momentum in terms of boxes for momentum stability.
looking and drawing fib with sar and keep looking to turn against the momentum often leads me to losing and that is what i want to abolish in 2015.
Perception of high and low
If i can combine this well i can then better manage my EP n TP levels, and doing well on these aspect will allow me to escape even when i have crappy direction bias.
It will be much based on testing of levels,
Discipline to LOBSOW
Constant respect n patience for key levels and
finally a component still under research: the macd divergence.