April 24, 2024

Increasing safety: sample entry from maintenance density

Scalping entry with a high probability of success or "one good trade".

We analyze the position for a breakoutlevel based on the impulse from the stops, while entering the breakdown from the density (we look at the density on the spot, do not forget about it).

When large participants set their limits close to the level and spread, we see it in the order book. And we use it in trade.

The beauty is that, more often than not, we get a really good break with LOW RISK. Because our posture is “protected” by the participant himself.

Increasing safety: sample entry from maintenance density

Screen for entering a trade on $DOT :) Density in the breakdown of the level on the spot, entry on the futures.

Scheme and essence of technology.</p>

Increasing safety: sample entry from maintenance density

</strong>Graphically it looks like this :)

If we see a density that is set IN THE DIRECTION OF THE BREAKOUT OF THE LEVEL, then we try to enter near the density, while placing a stop behind the density according to the risk per trade.

Here it is important to set the stop not quite close, because. the density can be removed and thrown around the market, and the breakdown will still go. But our stop has already removed.

+ We trade futures based on spot, and backwardation contangos can also hurt us.

Required Entry Factors.</p>

  • Spot density! It is not removed when touched by the price + moved closer to the spread, trying to realize it;
  • The tape is more active towards breakdown;
  • No densities against breakdown + no market participants in the tape who defend the level.
  • Stop loss per trade.

    There is nothing new in this paragraph :) We put a risk stop per trade in % (for scalpers it is 0.3-0.7%).

    As it was already written above, it makes little sense to set a stop for the density, because. they can endure with a shooter on the future, then the density will remain on the spot.

    Here you can see how the technique works by following the link: video from our student.

    We are waiting for you in the Telegram channel!