Hello Guys
First of all thanks for the great feedback on my first educations setup. I decided to share another great setup with you guys
I have first observed this setup multiple times and then tested it. Just to be sure that I have tested this setup which I am sharing now :) (Made good money :))
In order to get the maximum from this setup we need to have solid trend lines. I will share my 4H chart to show how I made this trend line.
I have identified multiple positions as P1 to P5 and I will talk about them in detail here.
To start off, this setup was observed on NASDAQ last week.
P1: Last week there was a big dump and most of us (including me) thought that we have missed a great opportunity. If you see this you wont think anymore. I think these big dumps are great opportunities to study and its very difficult to predict but the setup afterward is much easier to predict as I will discuss. The first indication of this setup is a strong pullback which we can see in this case but the most important is the point of the pullback.
P2: If you can see this black trendline, this is the pullback I was looking for. But at point P2, we missed it and get bearish. I did not get on this trade, I knew that it will return and even If i was on this trade and it get back it was not licrative. So i stayed out.
P3 : It was a strong bearish wave on friday followed by an equally strong pullback.
P4: Early morning today we touched this trend line and now I was ready to go short on it. Now the question was the entry point. The best and most secure entry point was P4 where the trend line was touched but I missed it so I was looking for a good ennty point now. If you see the green arrows on the chart and compare it with the RSI chart, you can see the pattern and there was a wedge formation. I was looking at it closely and entered the trade as soon as it was broken. As you can see, it was the perfect point. It went down very quickly and I break even so I was completely secure now
P5: This was a tricky point in the trade. Where to close the trade. In this setup, what I have seen is that we usually won't recover back to the starting point. so if you are breakeven so there is a major chance that you are safe and you will end up with good profit. At P5, there was a strong pullback and it got me thinking if I should close it or not. I have seen that in most case we usually go below the last low so I did not close and let it run. It went up for a small correction and went back down. At the exit strategy point I have put 10 pip trailing stop and let it run to get the maximum. I would have closed also but I may get some extra pips.
Look at the indicators in the chart closely and implment on other trades.
PS: Ngas had a very similar setup too. You can study that too. Based on this formula'
Any feedback questions are welcome :)
Best of luck
First of all thanks for the great feedback on my first educations setup. I decided to share another great setup with you guys
I have first observed this setup multiple times and then tested it. Just to be sure that I have tested this setup which I am sharing now :) (Made good money :))
In order to get the maximum from this setup we need to have solid trend lines. I will share my 4H chart to show how I made this trend line.
I have identified multiple positions as P1 to P5 and I will talk about them in detail here.
To start off, this setup was observed on NASDAQ last week.
P1: Last week there was a big dump and most of us (including me) thought that we have missed a great opportunity. If you see this you wont think anymore. I think these big dumps are great opportunities to study and its very difficult to predict but the setup afterward is much easier to predict as I will discuss. The first indication of this setup is a strong pullback which we can see in this case but the most important is the point of the pullback.
P2: If you can see this black trendline, this is the pullback I was looking for. But at point P2, we missed it and get bearish. I did not get on this trade, I knew that it will return and even If i was on this trade and it get back it was not licrative. So i stayed out.
P3 : It was a strong bearish wave on friday followed by an equally strong pullback.
P4: Early morning today we touched this trend line and now I was ready to go short on it. Now the question was the entry point. The best and most secure entry point was P4 where the trend line was touched but I missed it so I was looking for a good ennty point now. If you see the green arrows on the chart and compare it with the RSI chart, you can see the pattern and there was a wedge formation. I was looking at it closely and entered the trade as soon as it was broken. As you can see, it was the perfect point. It went down very quickly and I break even so I was completely secure now
P5: This was a tricky point in the trade. Where to close the trade. In this setup, what I have seen is that we usually won't recover back to the starting point. so if you are breakeven so there is a major chance that you are safe and you will end up with good profit. At P5, there was a strong pullback and it got me thinking if I should close it or not. I have seen that in most case we usually go below the last low so I did not close and let it run. It went up for a small correction and went back down. At the exit strategy point I have put 10 pip trailing stop and let it run to get the maximum. I would have closed also but I may get some extra pips.
Look at the indicators in the chart closely and implment on other trades.
PS: Ngas had a very similar setup too. You can study that too. Based on this formula'
Any feedback questions are welcome :)
Best of luck
Note
Here is the trend line on daily :)
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.