Trade selection when fading the 169

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These trades need more evidence than just the 169, and these are some possibilities:

trade only in the direction of the M1 HH-HL or LL-LH sequence
trade when there is confluence at the level
trade compressions and triangles at the level

There was one high probability trade which I missed,. In response to this I faded the level a second time and although it did get to 1:1 it didn’t get much further.

The next trade had the Intraday 61.8% retrace to support it and it just about made +20. The stops on these trades could be a lot tighter – if the trade is wrong and it gets above the 169, it doesn’t need to travel 10pts before I know it’s wrong.

This is against the HH-HL sequence but the 169 hit turns out to be a LH, the reason why trade works is the compression into the level. It then found buyers at the 23.6% fib which was also an M1 TL

Here’s another example that works. There are many levels above to get my +20 and the Intraday 61.8 is there to help.

I traded this last setup the wrong way around because… closed the sell I took above at BE, then the big candle made me think it was working and I would be wrong – so I shorted again ….

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Updated on 11 January 2019

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