Nice top down read, monthly context saves a lot of bad trades when daily looks tempting. When you talk about rebalancing the FVG, do you wait for a specific close, or you scale out at the mid point?
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Swing & position trading
- Joined Dec 2013 | Status: Trader | 570 Posts
Nice top down read, monthly context saves a lot of bad trades when daily looks tempting. When you talk about rebalancing the FVG, do you wait for a specific close, or you scale out at the mid point?
As a general rule I tend to scale out at the mid point.
When a FVG forms, the mid-point (consequent encroachment or CE ) tends to be tested more often than not)
It is the fair value level ( 50% ) within the gap.
This is why, when I trade, I use limit orders as opposed to market orders.
If my analysis is right I will be triggered out of a trade.
Same thing applies when entering a trade.
It all comes down to how much buying/selling pressure there is at the time.
Dropping down to a 4hr TF ( which is as low as I go ) can give clues.
Hope this helps.
