NZDJPY Previously, I would have entered here because price is consolidating before the continuation.
I learned this from Rayner. Not to say Rayner is bad, but I might have misunderstood his meaning. Also, he did mention that it wouldn't always hold true.
Back to topic.
Now that I learned about the pot stabbing incidents, the blue lines I drawn and blue arrows drawn depict where previous stabbing incidents occured, "out of the blue" even though price did show signs that it is going to consolidate then continue its downward way.
The examples shown are not perfect, but the idea is there.
Do not, just because price is consolidating in your direction, and you enter on it thinking price would continue its way in your intended direction.
Those who entered on the consolidation becomes liquidity for the hunters, because their stop loss gets triggered, because they placed it at the top or above the swing high of those stabbing incidents area.
I would instead, enter at the stabbing incident areas, because those areas are where the real discounts are being offered.
I might miss the deal, and it's ok.
I also think that losing isn't as random as gurus make it out to be.
Losing is because big institutes or a large group of people decided to buy or sell something together or at very close timings, or in conseccutive time ranges, leading to trends that move against the market norms.
Blue - Marketplace where the real discounts are being offered aka stabbing the pot.
red - Areas that show price consolidating, and will be continuing on their jolly way in a while "hopeful traders".
orange - Double bottom, W, spikes, also know as the places where institutional traders stab the pots at, to get the liquidity they need, to get the goods they want at the best prices possible, from hopefuls who placed their SL just beyond the tip of the spikes, because they banked in on the consolidation, and if they place their SL too deep beyond the spike tips, their 1 to 2 risk to reward would not be possible.
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I thought i was smart, but actually now I realised I too am so ignorant because I entered on the consolidations for so many years being a hopeful, and theres no many traders who said to not put the SL at the tip.
I thought the tip was the consolidations tip, so, I placed it on the spiked tip instead(due to ATR buffer, too), and I got mixed results.
Now I know.
1st - Choose your
best discounted marketplace to buy to sell at.
2 - Consolidations are traps.
3 - If you missed the opportunity or it didn't come, its ok. You don't take much trades a month.
4 - Take care of your emotions and mood and mental health if you want to be a good trader. And that includes getting your dopamine from the right sources, like money from work instead of hoping you get it from trading. and, eating well. You dont haveenough to eat well? Go get a real job, first. Really. Even 10$ a day is better than nothing. And dont make babies or have a gf or bf. Really. Focus on yourself.
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