So, this is a strategy I used to trade and what actually held me above water rly well while I did not know how to trade with limit orders and SL and stuff, Im still not the best with SL, but learning :)
So, I dont remember exacly but I think got this when MuleSkinner was explaining how market works in a human way, thats when I started looking at the market more human, and tryed to use it to scalp.
WHY IT WORKS:
In the market there are guys who think it will dump or pump, and if its in a spot where they are undecided they create "boxes" or... price of confluence, there is actually a indicator for that, and at that point it was undecided and in the end, one side loses, remember, it needs to exit the box range, it cant be "tested" untill it exits range, bcs ppl who were wrong, dont think they are wrong untill it gets a bit further away.
What indicates, that its something that cant be tested forever (look at it as a shield with a HP bar), it will be exhausted and all ppl under water will exit their positions.
But, be carefull of high timeframes before you get too consumed by it.
HOW IT WORKS:
There are several rules, the easiest thing to follow is.
It needs to exit the range for a specific time, maybe open and close outside of it, the cleaner the better tho, and it cant be too far away, by too far away I mean, in this example 9155-8932 is the range.
To detect the range, you mostly want closes, with less wicks, maybe look at wicks by only marking 50% of the wick body, if they are larger than the body dont even bother marking 50% of that, the best examples here are actually the lowest 3 supports.
Where to enter position?
you can always ladder it, but the way I did it is, I used the website called "aggr.trade" and looked at market orders, after they slowed down I market long/short if it was in a area, the hitrate is 100% in that case, if you count in any reaction after even if it ultimately fails.
The other way... ladder orders, with SL bellow/above wick of the box.
And as you see, it likes to test the lower or higher range, but I did not mention this bcs I dont have it in my old notes and I did not trade it for a long time so I dont remember, 3min works too, but not as accurate and if a box is broken cleanly, you can still count it to reverse its role, if it was support it will be resistance ...
well this is too much text, just wanted to share this, there are 2 more things that Im testing, that are based on what skinner said, but one of them is, things change if ppl are under water and buy after dump again to have it on 50% of the previous distribution to the are they longed again, thats more HTF stuff tho, and Mike does something called "Cat box" I think it has the same idea, actually never looked how it works.. but he uses Vwap and VPSV for it.
Oh yeah, I remember, its when he was explaining spinners, thats the candle with large wick up and down, and a small body.
So, I dont remember exacly but I think got this when MuleSkinner was explaining how market works in a human way, thats when I started looking at the market more human, and tryed to use it to scalp.
WHY IT WORKS:
In the market there are guys who think it will dump or pump, and if its in a spot where they are undecided they create "boxes" or... price of confluence, there is actually a indicator for that, and at that point it was undecided and in the end, one side loses, remember, it needs to exit the box range, it cant be "tested" untill it exits range, bcs ppl who were wrong, dont think they are wrong untill it gets a bit further away.
What indicates, that its something that cant be tested forever (look at it as a shield with a HP bar), it will be exhausted and all ppl under water will exit their positions.
But, be carefull of high timeframes before you get too consumed by it.
HOW IT WORKS:
There are several rules, the easiest thing to follow is.
It needs to exit the range for a specific time, maybe open and close outside of it, the cleaner the better tho, and it cant be too far away, by too far away I mean, in this example 9155-8932 is the range.
To detect the range, you mostly want closes, with less wicks, maybe look at wicks by only marking 50% of the wick body, if they are larger than the body dont even bother marking 50% of that, the best examples here are actually the lowest 3 supports.
Where to enter position?
you can always ladder it, but the way I did it is, I used the website called "aggr.trade" and looked at market orders, after they slowed down I market long/short if it was in a area, the hitrate is 100% in that case, if you count in any reaction after even if it ultimately fails.
The other way... ladder orders, with SL bellow/above wick of the box.
And as you see, it likes to test the lower or higher range, but I did not mention this bcs I dont have it in my old notes and I did not trade it for a long time so I dont remember, 3min works too, but not as accurate and if a box is broken cleanly, you can still count it to reverse its role, if it was support it will be resistance ...
well this is too much text, just wanted to share this, there are 2 more things that Im testing, that are based on what skinner said, but one of them is, things change if ppl are under water and buy after dump again to have it on 50% of the previous distribution to the are they longed again, thats more HTF stuff tho, and Mike does something called "Cat box" I think it has the same idea, actually never looked how it works.. but he uses Vwap and VPSV for it.
Oh yeah, I remember, its when he was explaining spinners, thats the candle with large wick up and down, and a small body.
Comment:
And no, doesent always work, even tho the hitrade is rly noic, I will maybe start understanding it a bit if I learn trend better