Re: Bob Volman Price Action Scalping Quote:
Originally Posted by Kalp A tricky day today for EUR/USD with many set ups being skipped due to earlier price action potentially acting as imminent support or resistance in the way of our 10.
I've attached a AUD/USD chart to illustrate a non EUR/USD application of the method. |
While Kalp is right that Bob's principles are universal, if you are relatively new to trading like I am it is advised that you stick with one currency pair when trading.
On with today's trades:
S1: Skipped Range Break setup. The overall pressure favors a short trade but the break itself was of the tease variety (prices bounce off the 20EMA and break without much buildup). After prices dropped a bit below the 60 level, sideline bulls entered and deployed their longs. The bears decide to push back the 1.2269 level. The bulls, ever keen to defend the 60 area, buy prices back up at a higher support level than (1). But all they could muster was a lower high (3). We can't count the bulls out yet as they fall back and defend their earlier support level (4). Yet again they are served with a lower high (5). The bears are shorting at lower and lower levels while the bulls are trying to defend the same support level). The mistake the bears made was to break the bottom barrier without buildup; they are quickly countered by the bulls. I would have liked to see prices test the 20EMA/60 level again before taking a break of the range to the downside; this would have given us a proper squeeze the could lead to double pressure (bulls bail and bears enter, pushing prices down).
E1: Prices continued to range around the 60 area for a good hour after S1. The top and bottom barriers aren't too well defined; the bottom barrier wasn't final until (6) had occurred. The overall pressure supported a short trade. We still have that downtrend on our chart from earlier. We also have a series of lower highs (2, 3, 4,5), leading up to a squeeze (prices bounce off 6, test the 20EMA, then proceed to break). It would have been preferable to see more buildup with prices bouncing between the bottom barrier and 20EMA a bit more but I felt that the big bearish doji that broke the range was enough push me over the edge to take a short. Unfortunately prices have trouble following through with the break and stall a bit before testing the 20EMA again. Prices pierced the 20EMA a bit, which is usually normal, but with a lack of follow through and prices crawling back inside the range, I thought it best to use this as my next tipping point should prices break through the lows of (1). Prices again stall, luring countertrend traders in, and I am stopped out for a 4.1 pip loss (0.7 pip from commission).
S2: Will have to comment on this later
S3: You could think of this as an Advanced Range Break. This was skipped because of unfavorable conditions; there was visible chart resistance from the dotted box to the left.
S4: Possible Block Break setup. The setup stands 3 pip tall but given the recent bearish move, this could be a good setup. But it still suffers from the same chart resistance as S3. If there wasn't visible chart resistance, I probably would've taken S4 if not already in S3.
S5: I could not argue against a more aggressive scalper from taken this DD setup. My only issue is that the pullback did not touch the 20EMA, so it's possible the prices may pullback even more (which would take out my stop)
4.1 pip loss for me today. |