Hindsight Breakdown ::EurUsd:: New York Setup
A really very nice setup that I just noticed while skipping trough my charts-
Backtesting and Pattern Recognition is like going to the gym. You always have to keep fit and stay on the ball. Trading has more to do with sport than you might think, because we are only paid for performance. And if we don't score goals, there won't be any money.
This setup came about shortly after the NY session started.
We have a nice + order flow in the h1 and m13,
which is very easy to see with the naked eye.
(- why m13? - because I prefer it to the m15 -)
If we are bullish, then we need targets on the buy side.
The highs marked with $ are very good for this.
Because I love value, the value area must of course not be missing here. The goal of the prize is always to reach the other side. If you look closely you will see that this is where we made the high of the day.
If we are bullish, then ideally we want to buy / sell stops from long traders. This is very annoying for traders, but quite convenient for us.
We then pair these sellstops with buystops, which are very beautiful and practical here.
I like the NY session best because that's when the market is most liquid. You have to set parameters for yourself, otherwise you will just be confused about. If I can't trade in the US session, then there is no trade for me. Good filter that saved me from really stupid trades.
The fact that this setup emerges right at the beginning of the session requires a good degree of certainty in the setup and a quick reaction.
In this "small" 30 pip m1 setup we have a convergence of many different fundamental and logical influences.
We have pain with the stopped longs and pain with traders who wanted to go short the old lows. So here we have double pain. Logical, understandable and universal.
Chart is bullish, so the trend / delta / order flow - call it whatever you want - is bullish and we expect prices to continue to rise. To this we can add the value area (which is nothing else than the zone with the most transactions) and get another signal for long, because the price usually wants to visit / test the other side.
Furthermore, we have very nice highs as targets in the environment that are neither hidden nor secret, there is also an overall weak dollar and certainly there is something in terms of news that can be added. See there was ECB news ...
That would have been a really cool picture book trade.
There are so many ingenious setups in this chart that I'm really annoyed that I didn't participate. But that is also part of it. Rein your sanity, stay relaxed and dynamic and wait for the next setup.
No Expert / No Advice—please be kind. It's just a Wizard with Tales of Time, Price & Mind.
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