My trading Psychology:-
I have been trading over 2 years live in Forex market. Generally I scalp in 15 min time frame and it can last from 15 min to 1 hour. Initially, it was tough journey before i met a 65 year old wise man, a Canadian, who mentored me and developed my trading psychology, then I started seeing the price action more clearly in the present moment of Now. Most of the people either live in the past or think about future ignoring the present moment. The reality is, we cannot predict the future because future is uncertain but we can take reference from past to anticipate the future. If you are good and correct in the present moment of Now then you will be good in the future, and if you are incorrect then change yourself, because it is Now which will take you into future.The same psychology i apply in trading. Trading is very simple, price either go up or down, if you are incorrect then change yourself and follow price flow action. I do not preset any price target, I take whatever the market give and then reverse my trade direction. But for many people simplicity is too complicated. Trading is not about taking stress, its about being natural and simple, but most of us forget a K.I.S.S(K.I.S.S=Keep It Simple and Stupid). If you gather 10 different analyst in a single room,then I bet they all may not agree even on single point.Price do not listen to anybody no matter who you are, IT follow its own move ,not any analysis and not any indicator. Indicators hide the Price TRUTH and too many ideas make the things more complex and difficult. Price is not lagging indicator it is the truth and the reality of Now. Understanding Price action behavior is all about feeling and that feeling comes from inside by doing practice. Its all about using your eyes not using your mind. After sometime your eyes will develop memory and then you will start picking up price patterns very early. I believe a woman can be much better trader than a man because she has less ego and more flexible, she easily accept the change while man is too stubborn and try to fight and he loose. So be flexible, accept the change if it is required, bury your ego and don’t try to fight with the higher force which you cannot control. Understand the price pressure whether it is up pressure or down pressure. This is the first requirement for the style of pure price action trading. There can be many question which we cannot answer in words but you can find answer in price chart .
Now I am going to discuss some basic price pattern on 15 min time frame.The reason being why I have discussed my trading psychology in the same article because I want reader to see the method in the same way what I have discussed above. See the forest(daily chart), see the trees(hourly), see the Leaves(15 min). Apart from this I use line chart to see W and M pattern . We see W and M every where on line chart in the form of Wide double Top (W’s) and Wide double Bottom(M’s) which I will discuss below.
The basic price reversal fractal top and bottom price swing flow "reversal pattern formations". Which establishes, swing tops Res. (ceiling) and swing bottoms Sup. (floor).
1- DT= double top(where 2 price bar shares the same top) and DB=double bottom(2 price bars sharing same bottom).
2- WDT =wide double top(more than 2 price bars I,,,,I “Ms” and WBD=wide double bottom(more than 2 price bars I’’’I “Ws&rdquo.
3- For an uptrend price forming new HL(higher low) and HH(higher high) and down trend price forming LH(lower high) and LL(lower low)
4- TFJ = Top family Jewel and BFJ =bottom family Jewel.
5- 1 price bar Cross bars +.
TFJ formation is a formation of three bars at the top where the high of the middle bar is higher than other two bars or you can say a first LH formation.
BFJ formation is a three bar formation at the bottom where the low of middle bar is lower than other two bars or a first HL formation.
I will show you all these formation in a price chart below:
Another chart shows Double bottom, BFJ formation and Cross bar.
Cross is a most reliable reference point for support and resistance. Price move fast when it is going away and slows down when it comes back near the cross bar.
The only indicator I use is CCI(10) for price up or down confirmation. I do not trade the CCI, I trade the price. I only use CCI for confirmation and sometimes I ignore it ,depends on price action and reaction at resistance and support level and my own feeling. Sometime It help to reverse the trade when price make new support and resistance level. Nothing is 100% Just like Sun moon and Earth change its position every day , our faces change every day in the same way price change its dynamics , the support and resistance levels daily.
Identify fractals and its range in price chart. Every swing is a formation of fractal. There are big fractals and small fractals. They are everywhere, not only in chart. We see them in our day today life.
Risk exposure and MM:-
Below see the chart forensic for intraday market price swing trade with low tight risk exposure Money management concept.
The another important area in scalping is low tight risk loss exposure. Understand the money Management. Generally the average size of 15 min bar is 8 pips and average EU swing is 20-22 pips. So keep your risk exposure under 8 pips. Sometime we can have 3-4 pips risk exposure. Depends on how close we are with the key price line. The closer we are less risk we have and we get high profit. If risk is more than 8 pips, then do not enter or reverse the trade. Mostly i do not use stop loss. I use it only at the time of any important news event. That is the only thing i bother about news.
Why a child learn faster than adult because he/she has an empty mind. They do not think, The just follow while we adult judge and think too much and ask too much question before finding the Truth. Just BE and let it BE like a dry leaf.