OMG runaway trade entry strategy
How do we enter a runaway trade without buying at the top just before a reversal? Where is a sensible entry point?
OMGUSD has popped and feels like the trade that got away before I entered. (see chart below posted when I placed OMG on my buy list)
Looking at the 4 hourly chart
( I prefer to use mainly daily and 4 hour charts - any shorter time frame is too volatile and open to volume and price spike misinformation)
I am using C.B.L- count back line analysis - finding the highest current candle and then counting back down 2 candles to find the low point of 3rd significant candle. Then draw purple line to the right handside. This gives me a volatility based entry level to buy when price come near this line. But to abondon the trade if a candle closes below this line.
Let's see how this turns out. I want to buy cheaply so always looking to buy near support. Short term support in this case is my purple C.B.L. and is confirmed by buying support - long candle wick in the zone.
Stay tuned.
OMGUSD has popped and feels like the trade that got away before I entered. (see chart below posted when I placed OMG on my buy list)
Looking at the 4 hourly chart
( I prefer to use mainly daily and 4 hour charts - any shorter time frame is too volatile and open to volume and price spike misinformation)
I am using C.B.L- count back line analysis - finding the highest current candle and then counting back down 2 candles to find the low point of 3rd significant candle. Then draw purple line to the right handside. This gives me a volatility based entry level to buy when price come near this line. But to abondon the trade if a candle closes below this line.
Let's see how this turns out. I want to buy cheaply so always looking to buy near support. Short term support in this case is my purple C.B.L. and is confirmed by buying support - long candle wick in the zone.
Stay tuned.
Trade closed manually
Price did not come back down near buy zone - above purple line.Price is now stalling under 320.
Better prospects moving faster elsewhere.
Note
definitely the one that got away! didn't quite come back down close enough to buy zone above purple line.
stay tuned for second chance entry strategy
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.