easy · Order Flow Analysis market-mechanics-execution
A trader is using a 'Trade Quality Grading System.' They enter a trade because price is 'moving fast' and they 'don't want to miss it,' despite no key level being nearby and no imbalances in the footprint.
How should this trade be graded?
- Grade C (Marginal), since fast price movement alone is a secondary momentum indicator.
- Grade B (Solid), if that trade later turns a profit by successfully catching the momentum.
- Grade D (Error), as it was a 'FOMO' trade that ignored market structure and footprint criteria.
- Grade A (Slam Dunk), only if the trader also applied the correct risk-per-trade sizing formula here.
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