A TCL test on open may indicate the direction of the AM trend. A second failed overshoot of one or more TCLs from yesterday may indicate a reversal or at least a 2L move away from the TCL.
When the gap is small, this can be simply viewed as a climax bar and a W type reversal on overshooting the TCL. If the gap is large, this often leads to the formation of a reversal bar and a possible trend from the 1st bar.
Drawing the TCL from the prior day prevents you from taking an entry in the wrong direction and is especially helpful after a strong trend day or two.
You have scalped out 1 point on the first trade (probably half of your position?) but not on the second one. What was the rational behing this? Do you always aim for 4 points on your swing part?
ReplyDelete4 points is where I usually exit my swing positions. Some setups such as 1PB are very highly probably to move +4.
ReplyDeleteSome setups such as A2 can give 1 point or +4, its best to exit some at +1 and the rest at +4.
Setups like W1P can reverse the entire W and if it looks strong (no CT bars) I will often hold till the beginning of the W.