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YTC Price Action Trader (

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Elite Member
Trading Experience: Intermediate
Platform: Ninjatrader
Favorite Futures: 6E
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Posts: 247 since Dec 2010
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In addition, what I meant was that you can think in advance which setup will fail ( in this context, market invironment ) and wait for other traders ( novices )to take this low probability trade, and wait for it to fail. Where will they bail out?

Thus in a trend wait for countertrendtraders to try to pick the top or bottom. For a BOF( failed breakout ) wait for breakouttraders take the break-out which fails
So key lies in recognizing the failures in advance, identifying the weakness. Learn to see other traders take a certain trade, and see if that trade will fail. Offcourse sometimes the failure fails, and the original premisse resumes. Then also the failed failure can fail etc.
For example, a test of SR fails, and becomes a pullback with trend. When the pullback fails, 123 pattern traders jump in. When the 123 pattern fails, we can see a 3 swing pullback form. When this one fails maybe a flag/triangle forms....etc. And this phenomenon take place in every timeframe imho. Thats why we can see a simple pullback from on the 15 min chart, containing several swings, double tops/bottoms and other patterns on a smaller ( or higher) timeframe. Eg the 1 min chart.

You have to make yourselves a lot of these mistakes to recognize it are mistakes.

Last edited by Zwaen; September 8th, 2011 at 08:56 AM.
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