hard · 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), as 'fast movement' is a secondary indicator of momentum.
- Grade B (Solid), if the trade ends up being profitable by catching the momentum.
- Grade D (Error), as it was a 'FOMO' trade that ignored market structure and footprint criteria.
- Grade A (Slam Dunk), if the trader used the correct risk-per-trade formula.
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