Free, If I'm scalping, and scalping is when I use my heaviest starting positions due to lower risk(small stop), when price is approaching the next barrier, say support if short or resistance if long, if I see the low of the last two bars taken out, I don't think twice about it and exit with my profits. Sometimes even just the low of the last bar if the prev bar is long enough or if I see momentum dying. ...and onward to the next play. Anek
bmw, It's cool, I'm only conceited when it comes to the ladies and I'm married so that era is history ...and I sincerely hope you are wrong, hope more than a few truly make it from the teachings and examples of the journal. It's really not that hard, but just like in sports, you must practice and stay in shape. Anek
Dont be rigid. Take what the market gives you, if your expecting a point and momentum dies at one tick before the point you will give back your profit. Our job as traders is to adapt to what the market gives you and maximize that to our abiliites. If it gives you three ticks take three, if it gives you one take one. If your expecting one point with one point stop, you will probably take your one point stop many many times. Think about it, and hope you find the right solution for your style of trading.
If I could give you some advice and if your using your indicators as well, focus on price and use indicators as reference. In time you will get rid of the indicators overall. This is a business of trusting yourself and your system. When you get to trust yourself and your system you will take the trades and play your odds. Hopefully in time you will see the value of price action and the probabilities it gives you, till then use the indicators as reference but always trade price action. Good Trading to all
Anek, when you take a double bottom play (close above the high), do you use a break of the double bottom as your stop. Also, when taking a break of a symetrical triangle, what do you use for your stop, is it the other side of the triangle?
Anek, This journal is a keeper. Agrees with mostly what I have built my system on. Wish you and your friends here nothing but success. I will not comment on trades or charts. I have nothing better. Actually, our stuff is too similar so I will stay out. I will observe and enjoy. Thanks again for the journal. Finally one that is serious and helpful. Have a most wonderful life....george
Billy, Depends on the play. If the trend is up, the starting position begins right at support, small size with a stop a few ticks below support depending on the instrument, some wiggle more than others. Once the high is taken I fortify the position, and depending on the size of the double bottom, the stop can go anywhere from below support to in between support and second add area securing profits on the first position and small stop on the subsequent one. If the trend has been down and a double bottom forms the scenario is different, you want a swing high confirmation and the stop goes between support and entry. Needless to say the size of the double bottom matters a great deal. Remember that a confirmation is a bar CLOSE, not a wick, above the middle swing high. Last but not least, nothing works all the time, but some patterns, like this one, have good success rates with superb risk vs reward, and that my friend, is what good trading is all about.... Anek
I take stouts as payment, better if accompanied by a trader friend Sample of price action for a random NQ day, should help for stop placement logistics. Anek PS: Did it very very quickly so pardon any mistakes.
Question: Rn, what is the vertical lines/histogram at the bottom of the chart? Its a simple volume. Why would I use a volume on a constant volume chart? - it helps me recognize a stage of completion of a bar.
Anek, I have said it multiple times before and I'll say it again. This thread is gold. This thread is priceless in its value toward good people that really strive and want to have a successful trading career. Aside from the basis of the thread on how to trade profitably using price action, you have been a class act the whole way through even when a few naysayers came in and caused a fuss. I hope this thread continues the way it has and that those of you like myself who are trying to get quality people and be profitable in this business really do become successful like Anek has done through hard work. Here's to successful trading with what really works! ~Cx P.S. I have had alot of good beers and drinks in my life, but I have never had a Stout. Maybe one day we'll sit and have one. With what you've taught me thus far, you deserve a few rounds .