Entry Points

[dstaples]

Hi Neal, or anyone else, I wonder if you could help me out with this one, I am still a bit unsure of how to enter a trade exactly.

I have watched the videos, trading the trend etc. but am still a bit confused.

The idea is to buy dips or sell rallies on the LTF but if you wait for a TRSI cross (grey over blue) then it seems you invariably end up buying near the top of a short term rally. Is the idea to buy at the 1st open after the TRSI closes with grey above blue ?, or should you enter at the fib or SK level on these 10,15 30 min etc. LTF’s.

Also, on the HTF, are we just looking for the TRSI to be up (or down) and with no near term resistance or should we be looking for this after a bounce off an SK level on the HTF ?.

Any help with this would be greatly appreciated.

Many thanks

Dorian

[FibMaster]

Hi Neal, or anyone else, I wonder if you could help me out with this one, I am still a bit unsure of how to enter a trade exactly.

I have watched the videos, trading the trend etc. but am still a bit confused.

The idea is to buy dips or sell rallies on the LTF but if you wait for a TRSI cross (grey over blue) then it seems you invariably end up buying near the top of a short term rally.

Please post a chart so I can see what you mean. When your situation occurs, it is usually because the higher time-frame has a weak trend. Be sure your example has a strong trend, thrusting market even better!


Is the idea to buy at the 1st open after the TRSI closes with grey above blue ?, or should you enter at the fib or SK level on these 10,15 30 min etc. LTF’s.


There are multiple strategies, and the ones you mention are good.


Also, on the HTF, are we just looking for the TRSI to be up (or down) and with no near term resistance or should we be looking for this after a bounce off an SK level on the HTF ?.


Both of those are good.


Any help with this would be greatly appreciated.

Many thanks

Dorian

[dstaples]

Thanks for you reply Neal,

I have posted a 15m hart of USDCAD from 14th July. It was in a good 4h downtrend at the time and there was a .382/.618 SK level at 1.1394/5 on the 15m.

Selling at this level would be “selling a rally” although I appreciate there is no conformation of the continuing downtrend at this point. It also coincides nicely with the down sloping trendline which I find happens very often.

However, if you were to wait for a close on the TRSI cross down you would be selling at 1.1352, which is just above the 1.1349 support, hence my query.

Another problem I have is that an SK level will require a .618 retracement on the most recent “wave” and the best thrusting charts have very shallow retracements often reaching only .382 if that. Do you think it’s ok to enter merely on a .382 retracement on these occasions ?.

The impression I’m getting form your previous reply was that any of these approaches is ok as long as you are consistent. Would you agree with that ?.

Many thanks again in advance.

Dorian

[FibMaster]

I don't understand those FibLevels. It seems they are made incorrectly? Perhaps you are making support levels, I just can't make sense of your Fibonacci studies.

See mine attached. I can locate an SK resistance at that level approximately.

In my next chart I'll expand the TRSI window so you can see entry options.

[FibMaster]

Attached is the chart with TRSI expanded.

In a chart with sudden down-moves (thrust) you are foreced to trade lower time-frames. The only way to get into a fast moving market is to drop to lower time-frames. On the higher time-frames, the sudden drop has already transpired by the time you notice it. So in this case TRSI is not able to determine a change in direction from weak rally to sudden drop until after is has happened.

The solution is to go even lower, to say 5 minute charts. I have not checked in this case, but that is the normal situation for markets which make sudden thrusts.

The vertical red lines on this chart show the TRSI short triggers, when it is able to detect a change in direction (downward). Until the vertical red lines, that chart is in a counter-trend mini-rally. To trade this chart you really need to go to a lower time-frames to catch the little moves, or just take the 4 hour trigger and ride it out (for the bigger move). The 15 minute chart does not have enough resolution to detect the change in momentum, until after a sudden drop.

[Justin]

In a chart with sudden down-moves (thrust) you are foreced to trade lower time-frames. The only way to get into a fast moving market is to drop to lower time-frames. On the higher time-frames, the sudden drop has already transpired by the time you notice it. So in this case TRSI is not able to determine a change in direction from weak rally to sudden drop until after is has happened.

The solution is to go even lower, to say 5 minute charts. I have not checked in this case, but that is the normal situation for markets which make sudden thrusts.


I don't care who you are, that's some good stuff right there!