These trades could get me into all kinds of trouble but they also get me into some excellent entries before the level – and they give nice, precise entries instead of the shabby, slipped entries that I see when trading at KL/TL breaks.
What are the filters for this trade?
- must be with-trend
- use only a retest entry
TRADE PLAN: I am getting confused about which of these trades is a Hits-Corrections-Breaks TL and which is an Imp-Corr structure. Maybe this doesn’t matter – but I feel it needs clarification so that I can monitor these trades accurately.
The first example here is a potential long. It is with the ST trend and the entry is buying into the TL which has just been rejected to target levels above. A direct break of the upper corrective TL costs 1R, but waiting for a break and retest doesn’t trigger.
The second example is on the short side and shows the importance of waiting for the retest of the corrective TL to enter. Again, this is clearly with the ST trend and the trade is given greater probability of success because the entry is also a retest of 23.6% intraday fib.
