(binned per thread starter's request) Market bottom rotation trad

Rudy my primary trading time is NYO first 3 hours equities, London i trade sometimes and sometimes not usually multitasking few things from other businesses.

Priority play USDCNH, PBOC eased again, with Chinas equity markets sluping there is almost no chance that currency would not take a hit. If stimulus doesnt help economy at the market hit, it certainly cannot help the capital flows into offshore currency market.

Priority play thus playing bull trend that is about to further develop in USDCNH, 7.000 the PBOC defense level to be tested in next weeks.

USDCNH longs covered. As expected shorts accumulated and pressure on CNH ramped. More to come.

is there any decent scanning software out there for the patterns you look for?

Nope, that would be impossible. Even if you tried built one you would get so many fake signals that it wouldnt be worth it, basiscally there is no proper solution to decent high and low detection by computer only a trained human eye can do that as its very relative subject so it doesnt really tie well with any scaning.
That said for pullback legs and supply takeouts.

However on equities, for short squeezes....there is very easy scanner. All you have to do is to go to finviz or any website that has pre-market movers list of equities that are gapping over 30% on that day, and thats it, list those under watchlist for potential squeeze, then wait for squeeze and play them. That is scanner that i use every day and its free, there are plenty of websites that offer those. Its for equity markets only of course.

USDCNH 6.9278 longed, H1 pullback leg, looking for a forward push on macro levels.

I love your style of trading because there's actual market logic to it, but I think I'd get lost in the noise if I tried to skim through the quantity of charts you do. Did you do anything specific to practice/train your eye? Like print out Grade A setups and tape them all over your bedroom for a month?

I've considered it.....

Keep up the good work.

Hehe....what you just suggested, and multiply that by about 100 to get even close to what i did. You need to go trough miles of setups and charts to practice any type of real play that has edge. You also need to do objective statistical counts of each setup once you understand it, and why that is needed is because you need to wire your brain correctly to what realistic expectations of the actual traded setup area, thing is every trader will have too optimistic expectation of setup because that will be imprinted in brain from the hundreds of sucessful setups you have seen in past, so you need to do proper objective historical data collection to really grasp how setup behaves (average DDs, dislocations, cancelations with heavy reversal moves, average TP reached ...etc...). All that requires study time for each setup at least 2 months. If you dont have time for active study time each day about 1 hour i would say its not worth it because it wont work.
Also to note, my main meat comes from the short squeeze setups, those are very different kind of beast to learn because you cant just only use chart to observe setup. Its the highest reliable pattern of any pattern in market, and thus my focus is each day to find 1 such asset and put it on watchlist, this heavily helps to keep trading more calm as that asset is always watchlisted pre.market and i dont need to keep re-scanning for new setups.

haha I understand. sometimes I wonder had I known from the start how much time it would take if I'd still have pursued trading years ago

would you have traded this or is there not enough symmetry at the top for you

Nope this one doesnt have enough symmetry. Not enough condensed supply on top.

Gold on closer watch for bull plays as global equity markets take a plunge over next days.

USDTRY

too bad TRY didn't work out, I would have guessed it had at least one more pop to the upside. GBP gave a nice clearout that I happened to be watching

so what are the benefits of trading equities? what made you decide to trade that market?

Significant benefits are:
-thousands of instruments which makes a lot more opportunities for plays, thus giving trader chance to be picky and only choose A quality plays, extremely important for consistent gains
-short squeezes. They are rare in FX, in equities you have them every day on at least 1 instrument. 80% of my monthly gains come from those plays, heavy short squeezes are the most reliable pattern in the market, 95% of short squeezes end with price collapsing all the way to where squeeze started (as mentioned many times on the thread). This makes it the main meat on the bones play for any kind of trader.
-consistency of plays. Every day there is something in first hour of NYO, almost guaranteed. No such thing in FX, you can spend hours tracking FX without catching or seeing any play.

Those are main reasons. For any serious trader looking for consistent gains those reasons are too strong to skip and not look into.

I see. so I guess it's a personal choice for the trader to decide whether to track a lot of markets to look for that perfect setup, or track a single market (or 2) in say futures where there should be a few decent setups per morning. assuming one knows how to read a market.

I may never trade equities but I appreciate your input as I've always been curious about them.

Actually i have to correct you on this one, that is exact problem of thinking that most traders especially FX traders make, and its a downfall. As trader you dont choose anything. Market chooses nearly everything for you, in terms how many assets you need to trade to be consistent, what broker is suitable for that, how many plays should you have in playbook to be consistent, how does the pattern behaves and how your strategy should be constructed based on average behaviour,....all that is what market picks for you, the worst mistake traders make is they tend to pick things first and then force it trying to make market work for them instead other way around.

Basically what you need to do is to carefully do research on exactly how many assets and how many patterens you need to trade to make consistent gains with your capital, this will dictate on how many assets should you track, how many markets, and how many patterns. Without doing that trader is simply forcing things on market. So in reality, if you want to trade the patterns on this thread you will need to trade equities and FX both, and utilize all of presented patterns, unless there is one big unless...unless you have very strong account size compared to your living costs. Most traders wont have that capital, thus as i said before you will need to utilize both equity and FX markets.

If you trade only few assets, most likely your trading will not be constructed of perfect plays, in reality you will sooner or later start to force B quality plays just because you want to be in play, that is the real result of not having and trading enough assets. It is the 100% correlated result to why most technical analyisis knowledge out there is absolutely useless because traders are trying to find the meaning behind every candle, instead of being more macro focused on structuring a lot more complex plays rather than finding a clue in every tick of price.

If a trader is using strictly TA I agree completely. I like to include some fundamental "why" to my trades though.

Since markets move due to the actions of large players and the decisions they make, it is possible to look at a lot of the same information as them and have an idea about what they are likely to do. If you have that fundamental aspect on your side then even if the pattern isn't perfect on balance the edge should be the same.

It kinda depends on the time frame you are trading though I guess because liquidity rules the lower time frames. The fundamental side would give you an idea if a patterns an accumulation or distribution but the scalp trade will be there either way.

Maybe I should have added some emphasis to my last post that a trader REALLY needs to know how to read a market. Im always asking

1. what should happen?
2. where is it likely to happen?
3. what is being done with liquidity when we get there?

On watchlist next week: YGYI, TRSSF, GNBT, CRMO all extended parabolic runs, looking to short, most likely gona play them trough options with 4-10 day strike time.