Price Action Vs TRSI on resistences

[adler]

Hello Neil

Thanks for your mini educational videos very intresting and very helpful in my trading. Please continue to do so whenever you can.

Please can you help me with this dilemma

EURO
Entered at 1.4228 and tp at 1.4187
4hr rollover at 18/09/2008 - 16:00 uk time
Entered based on 30M rollover at 19/09/2008 - 09:30 Uk time
Exit/TP based on previous low

In EUR USD, I had a 4 HR roll over on 4 hour so I have permission to short on lower timeframes. So i started shorting on 30 mins based on roll over on 1.4228 and i did get all the way down to 1.4157. Good..
Now after this I was waiting for it to rally up and so that i can reenter,

There was a resistence on the way 1.4220 where the price action on 5 mins and 30 where showing spining tops and next candle opened below it I wass thinking of entry but no trigger on 30mins trsi, but soon after on both the price broke the trend line in both pound and euro and went up to a bigger resistence and stalled there and started to move down.

Now the dillema I always face is on a resistence levels is should i enter based on price action or should really wait for proper trigger of TRSI on the lower time frames.

The risk is if I wait for the trigger it might be too long to happen and I would have lost quite a bit of the move but on the other hand if I enter based on price action and not wait for the trigger on the resistence I win most of the move on the required direction but sometimes i fail badly as price will start to suddenly decide to move to the next resistence/support which is very risky.


Question:
1. What will be your thaughts on priceAction/TRSI trigger
2. Which approach will you recommend
3. Your ideas on Money management on this trend.
4. Also for reentry should I have to reenter based on 4hr, 5 mins and 30 mins sequence rather than 4hr, 30 min and 5 mins as 30 mins trigger was way up and would take considerable move down to trigger

Please let me know if you need me to post a chart ....

[FibMaster]

Adler, please post a chart, it would be very helpful. Try to make the chart as clean as possible, remove any indicators and lines etc that are not pertinent to this discussion.

If you use the PNG image format, it allows a lot of detail and still a small file.

The cleaner the chart, the better.. Thanks.

[adler]

Hello Neal
Find attached the png of the situation i was talking about
Sell - indicated
Take profit - indicated
Price action of 5 mins indicator which made me think 30 mins is rolling over on downside.

Also may be my understanding of rollover was incorrect so thaught to add these lines to get more clarity from you about my question

Risk of rollover
EURUSD - 19/09/2008
Daily trend down on EURUSD and TRSI below 40 and looking for rollover and
then a double top happened on 4hr
4Hr trend up and rollover started at 60 so I decided to short on lower
time frames thinking market is not able
to move up and so can i consider the 4 hr trend is over.

After a decent bottom, Suddenly 4hr busted up side and what I thaught as a
rollover turned into a uptrend according to trsi indicator.

Neil please can you explain when we can trust a rollover and when we
cannot, what a ideal roll over means.

Hope it helps
let me know if it not clear yet..

[FibMaster]

Hello Neil

Question:
1. What will be your thaughts on priceAction/TRSI trigger
2. Which approach will you recommend
3. Your ideas on Money management on this trend.
4. Also for reentry should I have to reenter based on 4hr, 5 mins and 30 mins sequence rather than 4hr, 30 min and 5 mins as 30 mins trigger was way up and would take considerable move down to trigger

Please let me know if you need me to post a chart ....

Great question and charts! Here is what I suggest...

The trade-off is between entering early at a better price, but worse odds, or at a worse price with more confidence in the trade. Which you choose, is really determined by your personality and preferences. If you want to take the more risky entry with higher potential reward, you will have to be more careful about your stops and money-management (position size and leverage).

Another suggestion; If you want a faster TRSI trigger to get you in earlier, look at a lower time-frame. So if you see price starting to break down, putting in lower swing highs and lower swing lows, drop to a 5 minute chart, and short the TRSI crosses down there for entry (fine-tune entry and stop that way). Then revert to your normal trading time-frame for the rest of the trade.

[FibMaster]

Hello Neal

Neil please can you explain when we can trust a rollover and when we
cannot, what a ideal roll over means.


I'm really confused about what time-frame your down-trend is (TRSI 4H ?) and what time-frame your trigger is (TRSI which time-frame).

If your trigger crosses back against you, you really should be exiting. The move is over for that time-frame. If the trend holds, you can re-enter on the next trigger at SK resistance, but it it blows through resistance, you can't short any more.

[adler]

Hello Neil

The trend was from 4hr and trigger is from 30mins, but where i always get into a trap is on the reversal of any trend.

I 4hr trigger was down but then 30 mins grey line started to cross upside in currencies like pound i think it is a retracement but then it shoots me back like a reversal or a major retracement of a bigger trend. So this is where i get lost and can you please explain how you would handle this .

I enter and exit on every trade and my trade is not accumalated.

Please can you kindly let me know the ideal condition of a roll over from a trend perspective on higher timeframe and an example of entry and exit triggers based on trsi. Would be really great. thanks

[FibMaster]

You can exit any time to take a profit. If the 30 minute crosses back up (TRSI), you should exit because that move is over. You can re-enter if the 30-minute crosses back down to trigger another entry, at an SK resistance level.

Using that as your decision, you would have exited near the bottom to take profit (near where you did), and you would have been out of the trade when it rallied against the trend, with a big smile on your face.

[adler]

Appreciate that.

[Konstantin]

Hi Neal! Hi everyone!

I am struggling with this problem: trigger or not to trigger at price levels other than SKs, or even worse, other than not Fibs:confused:Often times I find that more or less price resists, turns, TRSI supports us, but that's all not at our projected level.....Is it a valid setup, can we join the move, or should we give it a miss?

Fibs and SK levels are definitely not a guarantee of price turning there, of course, if they conflow , that's a filter, and it's up to us to make this"filter" ,say, fine or more loose.

Neal, this is addressed to you as our "Sensei", does Fibmaster have strict rules with regard to these levels, cause if I tweak Fibmaster's rules, then that's totally diff approach.And I do not want to tweak...

Veterans and not only they:) are certainly welcome to participate

Thanks in advance!