Zen Trading Tech

Intro

• In this drill you use the higher time frame to understand how your favourite setups work.
• For example – mine is a High 2.
• Zoom into your favourite setups to develop new understandings.
• I spend a lot of time researching how they play out, so I can manage them well.

Daily High 2 on DAX 40 – Success

https://www.tradingview.com/x/euTlpBC0/

I write notes:

• Daily H2
  • Good entry bar
  • Good follow-through bar
• 60m Chart
  • BR CH
  • BLBO Fails
  • TR
  • LL MTF
  • HL Inverse H&S

Daily High 2 on DAX 40 – Fail

• Compare the above with this one

• Daily H2
  • Good entry bar
  • Bad follow-through – which closes below my entry
  • And I can’t get out at my entry
  • Earlier disappointment should have been a sign
• 60m
  • Bear Channel, failed bear breakout, then failed bull breakout
  • Once strong bear spike appears – probably close entry
  • You can see in the first image that pullbacks were more of a channel – here the pullback is surely a SPIKE – needs more down.

Breakeven on the daily chart

• Buying the H2
• Buying below the H2
• Could exit breakeven

Conclusion

• Suggest you take your favourite setups and begin to analyse them on a higher timeframe to develop the feeling of what the good ones look like AS THEY ARE FORMING.
• Using 2 or 3 is best.
• I like Daily -> 60m -> 15m
• Also 60m -> 15m -> 5m

Happy trading!

Tim