31 May

Victors Trading Blog #6

Updates

Salesforce:

Let's start with the last stock analysis I posted on TakeProfit, Salesforce. This trade resulted in a 26.56% drop or $76.67 move per share at the lowpoint. As outlined beforehand, we were expecting lower prices in Salesforce with an ideal entry, as almost always, at the 50% level.

Educational Note: You also gotta remember to factor in spread and order fees. Depending on your timeframe that can actually become an issue when prices changes direction where you outlined and put your limit order.

This is mostly the cast in 1m - second based charts as there are way less volume compared to a 15m or even 4h candle to fill you in. When you trade off of those higher timeframes, your entries will not be as good and precise, resulting in a higher probability of getting your order filled over the next couple candles.

Trust me, not getting filled because you're insisting on the best entry possible makes you MAD when price runs the first 20 pips (or whatever unit you're trading) without you. Then you may watch unfold the biggest moves, it always ends that way..

Crypto

If we look at the whole chart, we can see a triangle building. Triangles begin with big expansions in both direction that gradually get smaller in the form of a triangle.

Market participants assume that it's price action that's supposed to accumulate as many orders just force price into one direction, unloading all the accumulated orders to the market.

Often you can see at the tip of such a rectangle, that when you extend a trend line beginning from the tip, that price often returns to that level, this can happen multiple times.

As mentioned in yesterday's post, we reached the Rebound 1.27 of our little ZigZag pattern, fitting perfectly with the newly drawn triangle.

This expansion happened with another ZigZag pattern at the end of the trade, meaning we'll take the Fibonacci and drag it from one end to the other.

Here we have the 15m TF. Again, the little red circle is where price reached the Rebound 1.27 of the turkis ZigZag Pattern.

We have an intermediate term low that was dipped below, but not breaked/broken. That's an important difference. If price just dips below an old low, it's a Stoprun. If it's breached, price moves on.

As Bitcoin just took sellside, short term we're looking for higher prices before a break lower. We're expecting price to break down lower, because of the superordinate ZigZag pattern

Return to CE (Consequent Encroachment, meaning the 50% level) of the FVG. \

At the level of CE you can see the FVG at the upper part of the dealing range as well as that old FVG. Now we can expect price to go lower as we're above equilibrium of the recent price range and got our PD Arrays identified.

When a FVG is not respected because of higher TF Bias for example, those FVGs become Inversion FVGs. Kind of like Broken Support Turns Resistance.

This is actually a very nice way to better expect which FVGs to take for the entry, just look at the inversion FVG for more context and to find an entry.