Question:
I don’t know if you maybe had a new book, guide or article on your new site priceactioninja.com, much more interesting to which I already have, if I remember on this same string of mails you mentioned 6 articles on your new site. A book related to volume could be, I don’t know, you maybe could recommend me any of big importance dear Liam, that you consider it crucial.
I take the opportunity to ask something else if you can give me your advanced point of view on your experience and knowledge:
I cached this trade yesterday but with some doubts, luckily it worked but I had a doubt:
I entered in 2 parts, one part when priced had touched the first blue line on $43.11 and the second part when the market was almost to close and forming the pin bar.
When I was to enter at first time, I switched to a lower time frame and you can see on the second graph how it looks:
On 1H TIME FRAME you can see the little candles and later a bullish engulfing candle with high volume, is ok take this candle as trigger to enter when I was planning a trade on daily time frame?
This is combine the daily time frame with 1 hour time frame,
Even the previous pin bar could be used as trigger due the high volume but not really sure if I was right on my vision dear Liam, I would really appreciate your point of view, you can see the high volume below looks as accumulation,
If I remember you mention on forexmentoronline how to combine daily engulfing candles with daily zones as trigger, but not sure if I’m right by combining the 1H engulfing candle with the daily demand zone. I thought that we can get a better enter price much more anticipated,
My Response:
No worries on the late reply—I totally get how things can sidetrack you. Big thanks for the link-hunt, it’s saved me heaps of time.
Your questions, let’s dive in.
Banks—Gotcha.
I see how my detailed posts might make you think I’m a bank insider, but nope, never worked at one, never will. All my insights about banks, losing traders and the like, they’re just my reflections on how markets function. That’s it.
Weekly zone—If I were in your shoes, Hector, I’d probably hold out for a daily pattern before diving in. At least that way you have some clue about a potential reversal, instead of a blind leap of faith.
Plus, patterns like pins or engulfs mean a shorter gap between entry and stop, giving you a bit of a risk buffer.
Book—So glad you’re enjoying it.
“How To Determine When A Reversal Will Take Place” was one of my last hurrahs before I let go of the site. Packed some neat stuff in there, if memory serves. I think you’ve got my complete collection now. Definitely no volume-focused book—I don’t really use volume in my trading. I’ll double-check though, just to make sure nothing’s slipped past.
The six articles you mentioned are part of the members-only section—you’ll need to sign up to access them. It’s a work-in-progress at the moment, so they’re not available yet.
Other trade—Sure, you can trade daily areas with 1-hour engulfs, but only if the engulfing candle is a biggie, like in your image. If it’s a wee engulf, hold fire and wait for more price action.
A sizeable engulf indicates a stronger move, so its appearance ups the odds of a price reversal in the area.
Hope that clarifies things,