On which candlestick is this trade confirmed?

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TECHNICAL ANALYSIS PART 1
Presentation transcript:

On which candlestick is this trade confirmed? B C D On which candlestick is this trade confirmed? A B C D

Answer Candlestick D A is before the VA and TS line have turned RED B and C both close above the Price Envelope’s RED line. This is therefore above support and not yet valid as a trade. At point D, the indicators are all still RED

Where is the entry point? A C B D Where is the entry point? As close to A as possible As close to B as possible As close to C as possible As close to D as possible

Answer Point B and D These are actually the same point. The close of the candlestick at B is the open of the next candlestick at point D. A is before the trade is actually confirmed C is the close of the second candlestick. You should be in the trade by now.

On which candlestick is this trade confirmed? B C On which candlestick is this trade confirmed? No Trade A B C

Answer No Trade A is before the VA has turned GREEN B and C both close marginally below the VA. Yes the VA turns GREEN, but it is a false flick and not a valid entry point. At no stage are the criteria right for a valid entry point

On which candlestick is this trade confirmed? B C On which candlestick is this trade confirmed? A B C D

Answer Candlestick D A is before the VA has turned GREEN B and C both close below the VA. Yes the VA turns GREEN, but it is a false flick and not a valid entry point. At point D, the candlestick finally closes above the VA, and the TS line is still GREEN too.

Is this a valid swing trade? B C Is this a valid swing trade? YES NO

Answer No Notice the Trendsignal line at it’s peak does not move above a reading of 75. A key requirement for a Swing Trade

Where should the stop loss be positioned? A B C Where should the stop loss be positioned? A above high B at pivot point C at VA No trade

Answer A. You need to give the market room. Too tight and you call the trade right and risk being sopped out. Very often winning trades will pull back first to test the pivot points (see above)

On which candlestick is this trade confirmed? Monthly On which candlestick is this trade confirmed? A B No Trade C D

Answer B – No Trade A is before the TS has turned RED C is the open of a possible confirmation candlestick, so too early. D is the close of a confirmation candlestick, so almost correct, but there is no confirmation reason to enter the trade. Without a sniper, and being against the trend of the monthly chart, no trade is confirmed.