These were worth 6.4R for 2R risk, but officially, I should not take these trades while price is still outside the Bolli Band.
On the other hand, when price hugs the Bolli Band, it means it’s in a nice firm trend and I want to get on board so how do I resolve this?
I described the entries as H-C-B entries, but were they really? I entered the market when price paused at a level and then broke the mini-corrective TL. This works in a strongly trending market, but how can I distinguish that from a fast move that is about to reverse? The former is caused by an order vaccum plus a marker that is looking for trades; the second is also the result of an order vacuum but one created because no-one want to buy – there is a subtle difference between the two and I need to be able to see this in the PA.
The correct second trade is to wait for SUP 2 and take a break of the brief pause at the level.
TRADE PLAN: trading the H-C-B outside the Bollis makes sense when the market has broken through many levels and hardly paused, making PBs of less than 10pts while hugging the BB, but at other times, this is a recipie for disasterm but what’s the difference and how can I include this in my plan?
