Life cycle of a trader:
1st year - fail
2nd year - fail
3rd year - fail
4th year - still fail
5th year - become a trading influencer
6th year - sell a course
@CoveTrader The math doesn't add up. How do you have a $550k profit and a 24.0 Profit Factor, yet your Sharpe Ratio is only 0.31? This suggests the strategy is either bugged or highly unstable. Stop selling 'holy grail' dreams to beginners using unrealistic backtests.
Most people said the D-shape profile, but why?
It all ties back into auction market theory and the idea of a bellcurve distribution.
A symmetrical profile offers equal opportunity for both long and shorts since price is trading within a balance as both buyers and sellers have agreed upon what fair value is. Once price accepts inside this value area the responsive side isn't willing to reverse price until it reaches the extreme again, where it's not longer considered "fair value".
A non symmetrical profile is advantageous to one side of the market. There has been initiative taken by either buyers or sellers, this then prompts a response from other time frame players as they are faced with the choice to either ride the trend or counter trade it. Which then results in anomalies inside the profile such as low and high volume nodes, single prints ledges. Basically anything that sways away from the standard D-shape distribution.
If you’re a scalper, pick your overall direction from a higher timeframe, then place your trades using only one smaller timeframe. Using more than two timeframes can lead to confusion and weaken your decisions.
$NQ
There is no such thing as Fibonacci on the chart. Don’t rely on it for support or resistance, and don’t believe in the golden ratio.
Be careful not to fall into this trap.