I had two customers in the past few days ask me related questions. Although they are different questions, the answer is similar, I decided to highlight this with the Order Flow Crude Oil trades in the video below.
One trader was asking about reversal trades and the fact that I don’t like them. That I feel trading support and resistance is fundamentally wrong because to get to support, the market has to be moving down. That leaves you always trading against the market.
I was discussing trading AFTER a reversal and the trader asked “isn’t that chasing the market?”. To better explain, I thought it was easier to show it than try to explain in words. So the first video is a trade AFTER a market appears to have reversed but it’s still not chasing the market.
The other trader has been struggling with some of the drills, so I wanted to show momentum as a means of entry confirmation. Both trades here show using momentum to enter, one of them on a breakout. one on a reversal. One long, one short – at the same price area but different times of the day.
This is just one of the setups Jigsaw users can take day in, day out. Using an understanding of how short term speculators operate!
As usual, you can click to watch full size.