In the conversation you can read here, I was asked what I look for in regards to a greater imbalance that gives me confidence to enter a trade.
I rarely post my trades because I have nothing to prove or need to impress but in this instance, it will help hammer home the answer to the following question that appeared during the trader talk:
(with a greater imbalance of one or the other, I would like to see something happen that shows it.) “See something happen” … like what?
This is one of the things I look for when considering a trade. Price traveled a distance from the support level break to the downside, no price acceptance and price, on the same day, traded back inside the support that forms the bottom of a range. This was after a strong momentum push that happened a few days ago on good CAD news.
I entered at basically the close of the candlestick as you can see by the arrow.
We can see by the sudden momentum push up that there was an imbalance at that level. There is nothing better than seeing price move quickly in your direction. The amount of pips is one thing…more importantly is what each pip is worth.
These are simple approaches to trading. Why simple? Simple works.
Note: I may get a question about this chart. I use Oanda for my retail Forex swing trades. My futures traders are outside the scope of this blog but my trading approach is no different. The line at the bottom is simply a 14 average true range – volatility measure for stop placement