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Chapter 32, Part II. Tracking Your Performance - Continued... Page 2

Discussion in 'Complete Trading Education- Forex Military School' started by Sive Morten, Dec 28, 2013.

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  1. Sive Morten

    Sive Morten Special Consultant to the FPA

    Aug 28, 2009
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    Second, to find such zone where you intend to act you need higher time frame analysis. Very often this zone could appear as overbought/oversold of a higher time frame, Classical or Fibonacci support/resistance areas, Fib extensions targets, higher time frame patterns and other stuff or their combination. The current time frame also will add something to the overall picture. Since higher time frame analysis will not change fast and you may use it in multiple trades – it will be better to save it also. Besides, higher time frame analysis will not be seen in the details on your chart where the major battlefield will stand – it will show you just an area.

    Entering/Exit technique

    Every trade demands specification how you are going to enter and what technique to use. For that purpose we need a lower time frame chart (remember that we have talked about regarding multiple time frames analysis). It is very unwise to jump in blindly – better to wait for when the market will confirm your potential entry area. Depending on your trading style you may use a lot of different things – candlestick patterns, Gartley harmonic patterns, classical patterns, divergences, oscillators or something. Use what is working personally for you. The major idea is to confirm your entry area. Entry technique also could include some worrisome signs that cancel a potential trade. For example, a long thrusting bar near harmonic pattern completion point, erasing or harmonic pattern, trend breaking or something.

    Just remember – your entry zone and your entry technique are solid, indivisible. Blindly jump in at a predefined area leads to solid stress and loss, since you can’t resolve where to place your stop, while applying entry technique in occasional areas without preliminary analysis and context leads to catastrophe. Potential entry area just shows where to search for a signal, while entry technique lets you either find this signal or shows you that this area has failed and is not suitable for entering anymore.
    #1 Sive Morten, Dec 28, 2013
    Lasted edited by : Oct 9, 2016
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