i am trying to get an idea of valid trades in hindsight.
Main motivation initially is to use it as addon to VP method in rangebound/slow trend days and maybe later to enter in pullbacks in trend.
Using only 1day VWAP and EMA pivots for now.
Today's SBIN 2min chart below. Some questions + Please correct below for mistakes when you get time.
1) Gap down below below VAL but no continuation. Prices pullbacks beyond +1SD, but does not hold. So no long above pivot. Prices do hold above +1SD on next attempt. Can go long above pivot with VAL as target
2) V Rejection from VAL, weaker push up. short on pivot break below +1SD. This is simple minor trend reversal with Trend.
3,4) Price in Tight ranges - first between VWAP and -1SD and then -1SD and -2SD. Are trades possible here? If we enter on BO then entry is below -1SD which may only move in strong trend.
5) Price pullsback to VWAP which holds twice. pivot break gives clean short trade that reaches -2SD.
I guess +-2SD is clear area for taking profits, but do you look at using +1SD too (Besides fixed target)? Do you use AMA trail in rangebound markets?
6,7) Price ranging between -1SD and -2SD. Are short trades possible here? BO are beyond -2SD or close to it.
Some More questions.
1) Do you Try to enter before pivot break? Limit orders ? Do you do blind scalp between bands, say in tight afternoon range in direction of bias?
2) Besides pivot breaks, is there anything you use to judge whether price is holding at a level?
3) Do you trade into a level. Say in todays chart, will you take pivot break short just above -1SD with target -2SD
thanks