Try to enter when the direction has established in the direction of your trade. For example: on bounce, on false breakout counter-reaction etc. Don't try to catch peaks of the extremes, but do use them as stops.
- Don't enter F.B. when approach is smooth and not rapid. (FB vs BO setup).
- Do not enter during see-saws.
- Good F.B entry happens in a clean wedge, not in a messy set of toxic candles.
Have order ready, have it wait there for a few min, don't make it and it have triggered immediately or within a few seconds.
If you have a strategic entry, the cold order bracket should have been there for a while, waiting.
Here is same example, notice the first test: clean, sharp. Then followed by challenged level. A: Clean, B: Not idea reaction to level, followed by a mess.
Level Strength
Trade strong levels that have been established in either or both early session or previous session. Ignore mid-channel levels, these are weak, and don't lead to reversals, just temporary micro-trade-throughs.
Sequence of tests
Here level is established in pre-session and confirmed right after opening. Then followed by a fights between sellers and buyers, buyers clearly win, and defend the level as its tested again.
That second test is something to watch with a cold order ready.
Most Losses
Are result of bad entries.
- Rushed entries due to FOMO
- Trades motivated by desire to recover losses
- Trades on weak levels or no levels
- Trades entered during see-saws
Other thoughts
Past analysis of the big picture (end of day C etc) shows that chasing 2-3 candle moves is a waste of time, stay in it. Let it run. One of these doing a full move will yield more than a week full of roach trades.
Move your stop into lossless position, but don't go beyond.