WE have used blog post to talk about various trades that exit with the BOT System: Long BO's, Range Runs, and Short BO's are dominant. RR plays can be extended or quick to materialize. It is those slow plays that will leave some traders out, or create early exits. If PA is range bound inside the ranges, that too presents problems with holding for the range run. A solution is to focus on trend line plays within the range run. It should be obvious, Trend Line plays (TL) can be used at any time PA has established a trend, either a few bars or extended, and we can have trends within trends.
In all the possible plays, a trader can improve upon their success by having support for the trade. This support can be any PA set up, patterns, or tools used by the trader. The use of multiple time frame charts is beneficial as well.
THE STORY:
PA had hit the LB resistance and was in a range run. This was one of those extended runs, slow to develop and finding support at the Mid BOT. The "big picture" trend was down. Buyers had staggered their longs (roughly 94.5-93-90.5). They need an exit to profit, or their covering will push the PA below the support at the MB.
THE 5M LOOK
The last buy entries created a gap to the MB and we see a new TL develop. The strategy with a TL: hold until there is a break. If your not in, look for a secondary entry on the TL. The dominate trend is down, and we will assume it will return until it too is broken. The bear TL was broken at/near point 2. Another factor, look for TL FBO. The TL is played like the BOTs. Essentially, a TL is a diagonal BOT.
Buyers got their profit exit (avg. 1-1.25) near point 3. PA reverts back bearish and breaks the EMA and the TL. Short to the support.
SUPPORT CHART
Supporting your trade will improve your ability to trade. Improved confidence will help you take winners and not second guess losers. If the trade is not support, do not take it. If it's not working, get out. Focus on the why to the trade and your support.
THE 1M
The entry at point 1 seems clearer, as does the secondary entry at point 2 and the TL BO. The caveat, Short time frames are for quick trades, too quick for most traders. But a standard trading chart combined with a less time frame can often provide additional information for the trader.
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