FTA ( First Trouble Area) is the first area that price is likely to stop and revers.It is the nearest price level where one can expect some opposing order flow.
We need some space for our trade to move and take our position to profit. Better to ensure that there is some space between our entry and the first point of interest that can give our trade some
trouble. Price may not always reverse at FTA. Price often will just stall for a bit before
carrying on. It depends on how strong the level it is heading into.Strength of the trend and the price action trigger also matters.If we really think about it, the FTA is also a RR ratio.
FTA could be a recent swing High/Low, a round number, a, price flip zone. or a consolidation border. It is best
to try to define these areas from situation to situation rather then one such thing.
Pay attention to FTA so that we can be more logical in our trade planning and management.
Hi Sir,
ReplyDeleteCould you please tel me approximately how much space is required to take a trade???
I was observing, for few trades you are not trading if the space is 10 points and few places you are taking the trade.
Thanks,
Mahesh
Mahesh
ReplyDeleteSuch rules cannot be made.
Your decision should depend on the strength of the move and strength of the FTA
For example a weak FTA against a strong trend will always break.You need not worry about space at all in such cases
ST
Hi Sir,
ReplyDeleteThnaks for your reply...
Do we need to consider the volume while trading...with DPs.
And also tel me what other things we need to consider..along with our chart?
Thanks,
Mahesh
Mahesh
ReplyDeleteThere are so many things to consider.
I have explained a lot in my 140 posts written over the last two years.
I was working quietly on this the previous three years. This is something that evolved over a long period of time and still evolving.
This cannot be explained or condensed in a comment reply.It may take one or two years hard work to achieve it.
If you are not willing to go through all this, do not waste your time here.
ST
Hi Sir,
ReplyDeleteThanks for your suggestion.
Thanks,Mahesh
Dear Niranjan,
ReplyDeleteFTA and LOL seem similar or am I missing the point?
Thanks.
FTA is the first barrier for price after a trade entry. This can be a single level
DeleteLOL is two trouble areas clustered one after another. This need not be the first one
ST
so can FTA be considered a sub-set of LOL?
DeleteNo. They are different concepts. LOLs are trouble area clusters but may not be FTA
DeleteTerm FTA does not refer to the first layer of a LOL
http://niftynirvana.blogspot.in/2012/03/trouble-areas_14.html
http://niftynirvana.blogspot.in/2012/03/layer-over-layer.html
ST
Ok. Thanks.
Delete