Thread by @siddharth_2410

LEARNING POST
[Refining your ENTRIES based on MARKET STRUCTURE]

In this post I will make an attempt to share a simple but effective way of getting into TRADE with LOW RISK

If you find it interesting feel free to "RT"

So let's get started

Most of the time when we want to trade LONG we generally look for a classical pattern of UPTREND i.e. HIGHER HIGH - HIGHER LOW which is the first confirmation to trade LONGS

(See the image for better understanding)

Secondly what we look for is we wait for the price to retrace to the zone where it prior faced RESISTANCE and now it will be acting as SUPPORT and from thereon we will initiate LONG based on the concept of ROLE REVERSAL / CHANGE OF POLARITY

A perfect sauce for "PULLBACK TRADING"

But how about finding a way in which we tweak our sauce of PULLBACK TRADING to reduce our risk and take low risk entry to get more benefits via better position sizing

So let's make an attempt to understand how that can be done

So instead of BUYING at the "ZONE OF CHANGE IN POLARITY" wait for the price to retrace back to the "ZONE OF ORIGIN" which lead to making to HIGHER HIGH

But always remember when the price retraces it should not break the pattern of HIGHER LOW other wise it will get invalidated

When you are taking ENTRY at "ZONE OF ORIGIN OF MOVE" you get two benefits
1. You get LOW RISK ENTRY
2. You get more places to COMPOUND POSITIONS when the price moves higher and get chance to make your trade RISK FREE

If you are looking for an example then here it is
tradingview.com/x/4NCpW9kf/

Hopefully now you have understood the way in which you can improve your way of PULLBACK TRADING

Happy Learning,

With Regards,
Siddharth