4h
This is the XAUUSD trade I took on Tuesday.
Once again, what I am doing here is the same as always.
Within a daily sell-the-rally zone, the 4h also formed a lower-high setup, so I entered on the break of the prior low following a lower high on the lower timeframe.
4h
This is a 4h screenshot taken immediately after the entry.
On the 4h, rather than a perfectly clean lower high, the wick has pushed slightly above the previous high, but I do not concern myself with that kind of minor discrepancy.
If lower timeframes begin a downtrend from a daily sell-the-rally zone, I will still take the entry.
The green line below marks the level where I took partial profits.
The pink line beneath that is a prominent low that is also clearly visible on the weekly timeframe, so it is a level that often becomes a profit-taking target.
That is why I took half off there.
1h
On the 1h, it looked like this.
Price formed a very clean lower high and then broke to a new low, so this was an entry at the very start of the trend.
1h
Alternatively, it would also have been possible to enter from a point like this, but I entered at an even earlier spot.
1h
I only have screenshots from immediately after the entry, so this chart is from after the trade had already played out, but the exit was handled the same way as always.
After taking 1/2TP, I closed the remaining position at the point where the 1h trend ended, and that completed the trade.
That is all for this one.
My trading is always the same repetition of the same process.
I build a scenario, then execute it as planned.
And I keep building those scenarios in the same way every time.
Lately, I have not had the time to write, so I have not been able to post the kind of detailed scenario-based blog articles I used to.
But if this interests you, I encourage you to go back and read the older ones.
In them, I lay out the process of how I build a scenario from charts before the outcome is known, and how I actually execute it in real time.
What I do is use multi-timeframe analysis based on Dow Theory and Granville’s rules to identify where order flow is likely to concentrate, build a scenario around that, and then place and execute orders accordingly.
That is the process I repeat over and over.
And a little while ago, I released a piece of content called "Trading System Architecture."
It is a manual for building a reproducible trading system.
It covers everything in detail, including how to build a system, the exact process and specifics of testing, what metrics to use to evaluate a strategy, and how to calculate position size.
If you do not yet have a system with an edge, I highly recommend getting it.
It is an exceptionally detailed and information-dense piece of work, unlike anything else out there.
Thank you for reading to the end.
I hope my blog can offer useful hints to those who are trying to build a strategy, and to those who are struggling to achieve consistency.