This is a trade that had confluence as it met my criteria for both my order flow analyzer setup (blue arrow on a pullback to a level) and my other scalping setup that I’ve been working on. Finally! Lately I’ve been taking more of the 2nd setup and a bit neglecting the first.
Price pulled back to the zone which gave me a valid setup for #2. However I didn’t enter because I was waiting for a signal. The signal came and I entered long. Now there is an interesting point here: Had I entered on the pullback I would have had a better price. However, waiting for the signal gives me a better win rate and boosts my confidence.
Now where to target? You can see the red line on my chart and that’s what I targetted. As a reminder I’m trading 1 lot but I want to trade as if I were trading multiple. If I were trading 2 I’d take my first target off at this line and then hold the 2nd for a new high. I plan to go to 2 lots once I have some more data and work out the details with my 2nd setup.
I hope all that makes sense. Please let me know if you have questions. If you’re interested in trying out the indicator let me know. The market is making new highs now and the second contract would have made more money.
If one can be patient and wait for pullbacks and time entries properly with low risk, one can be profitable.
PS: The blue arrow coming right after the red sell arrow set it up for a red signal failure and those are usually good trades.