A little snippet into a current trade of mine right now - $DOT
A mini day trade thread:
- First open the chart and assess the Price Action
- What we see is some previous market structure broken per the rectangle
- We've also now had 4 taps of support here
Now we set up our HTF fibs as shown, and then also check the volume
- Note that there was a large amount of volume to support the larger move, with much lower volume now where price is trading
Then we add our fibs on to suit as we love to do
Followed by our mate, Stochastic RSI
- Old mate SRSI shows us that there is an overbought event right now occuring at the resistance of the 0.618 level
- This suggests that the market will dip as a result
- I'm now set up for a short sell
- But, let's look for more confluence
So for more confluence, let's take a look at the VPVR
And, what do you know - a point of control also sits right on the fib that price is resisting at, coupled with the overbought SRSI, and... one more thing
Our bias builds for a short.
We now also pull our fibs with our targets, and price also lines up with the 0.618 to 0.705 level for an entry, and target could be the 0.786 fib which is also not far from the Value Area Low of the VPVR we explored above.
Short confirmed
By this time, I've taken first profits, and my SL is now at break even.
It only takes 5 mins to assess a trade, and when you find the conviction that supports your idea, pull the trigger.
Take no prisoners.
You're right or your wrong, but probability is in your favour here.
And for those of you who were playing at home, here is the result of our daytrade that we took.
Target hit for 2.53R
Remember:
- Build the narrative
- Find the confluence
- Execute
- Repeat
You can do this!
• • •
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- We've hit the 0.618 fib of a higher time frame &clearly seen some rejection
- Based on the move, we should now build a narrative
- History has doesn't repeat itself, but it does rhyme
We can call this move a bear flag at the moment, and the key thing is to recognize how price reacts as the 0.382 fib level of a bear flag
- Note the ellipses shown here for reference
Now to check out some Volume Profile:
We're at the VaH of the VPVR - in a parallel channel we usually short at the tops of these, so there would have been a lot of selling interest here, coupled with the 0.618 hit of the overall HTF
When carrying out TA, you've got to build confluence. Here is how I would build this $BTC trade:
1st Pic - VPVR tool on TV shows we are at Value Area High of the recent price action
Second image introduces a parallel channel to the mix
We usually short at the highs of the channel, and long at the lows, taking profit or closing trades at the mid line (this works until it doesn't - you will end up losing a trade doing this in each channel)
Third image introduces HTF fibs into the mix
Note how well these levels are respected when pulled from the swing low of the move to the swing high
Sick of getting stopped out, taking a shitty entry, or generally feel like you gettin your arse whooped in trading?
If so, you’re in luck my friends - I’ve knocked up this whizz bang, you beaut thread for you:
✍️📒
Agenda
- Setting Up Fibonacci (Fibs)
- Long & Short Tool
- Position Size Calc
- How to Use Fibs
- Position Entries Based on Fibs
- Fib Targets
- The Importance of the 0.28 Level & Profit Taking
Fibonacci
I’m primarily a Fibonacci trader. I use them for every single trade I take. The value they offer is the best there is in my opinion as a primary tool for assessing a trade (you still need confluence to enter a trade though!)
Here are the settings I use.