Which tool to decide to enter the market at a pre-defined area of interest?
I am currently working on my trading, and I am now willing to trade only in pre-defined areas of interest. This thread is not about ways to define such levels.
I would appreciate some ideas about the way to enter at such areas. More precisely:
Let's suppose that you start the day with pre-defined areas of interest, for instance determined by your analysis of market profile, volume profile, former support support & resistance, supply & demand, etc.
The question is: which tool have you found effective to observe the behaviour of the price at a pre-defined level in order to decide to enter or not?
- candlestick pattern,
- price action pattern (double-top, 2B, etc.) at a lower timeframe
- strength and weakness through candlestick at a lower timeframe
- times & sales, tape reading
- DOM reading,
- divergence between the price and something
- volume footprint, volume ladder
- other tool to assess the relative strength of buyers and sellers
- some indicators
- no tool, use of "blind" limit order to enter due to confidence in the level
I am personally more familiar with price action patterns (2nd bullet), but I would like to explore other promising areas.
The aim of my question is not to make a list of possible tools, or to know "secret" details of one's methodology.
The idea is more to know which kind of methodologies are actually used by futures.io (formerly BMT) members (willing to answer) in order to "zoom" when the price is arriving at a given level of interest, and consequently decide to enter a trade or not.
My preferred method is the 'use of "blind" limit order to enter due to confidence in the level' as i put more emphasis on the analysis and the identification of support/resistance. 'Footprint/DOM/Times&Sales' may help as well as 'strength and weakness through candlestick at a lower timeframe'. It depends of my risk and potential reward. For a scalp i might consider the Footprint but would prefer 'strength and weakness through candlestick at a lower timeframe' while for a swing trade the 'use of "blind" limit order' exclusively. At a higher level there is no need for fancy tools like the footprint in my opinion as you're not aiming for 1 or 2 points.
The following user says Thank You to trendisyourfriend for this post: