Trading successfully using technical analysis based charts must includes a [REASON] to trade ( Setup/Pattern/Indicators), A [FRAMEWORK]: Supp/Resistance Lines, MAs, Pivot levels, Bollinger/Fib. Bands... And an [EXECUTION] Trigger ( A Strategy based continuation/violation of certain level/thresholds).. Of course last but most important is [Money Management] this must be invidually tailored for each setup.. Could be $Stops, $Targets, MAs, Supp/resistance, Swing High/Lows etc.... Given that HA Color changes to show Trend is NO holygrail at-all.. But within a context of a Trade, I would like to show how I incorporate HA into a Pattern Based trading in the following Example. [REASON]: Potential H & S Pattern [FrameWork]: H&S Formation within the Fibonacci Bands, Showing a Clear NeckLine. [Execution]: 1. Wait for HA Bar [RED] Close below the NECKline to confirm the Trend. 2. Short One Tick Below the Low of the B/D Bar. (Watch HA Color Confirming the lower B/D Bar) [MM]: ** Stop above the Right H&S High (on close basis) (In fact, I thought this would happen first during the RT setup) ** Target the Entire Range of the Head from the Head to the Neckline (A Measured Move) Example: Chart1: Time: 2.46pm pattern formation Chart2: Time 3.38pm. (Result) Regards, Suri <img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1699476" border = 0> <img src= "http://www.elitetrader.com/vb/attachment.php?s=&postid=1699478" border = 0>
ok we are in an uptrend Don't focus on the no signal part, isn't that a scalp method you've seen before? hint hint the 2 letters of my image should help you....
OK, 1 tick above or below indicator. I ask because as I review your chart, almost every time there is a go signal, the price pulled back below/above the magic tick within the next bar or two. ( I see one exception)
Working on the tune, but my 3-year old son is becoming acquainted with chart reading... On a daily basis he opens charts in QT, scrolls and identifies trends and makes live calls... 3+ consecutive green candles and he calls out "Green Daddy Green" very enthusiastically and when he spots 3+ consecutive red candles "Red Daddy Red" very nervously (probably a product of our checking his college account together for the past year). I am working on his bullish bias and teaching him the way of AHG
Just to show you I'm not cherry picking, I highlighted a sequence of only bad trades, can you stand the negative pressure?
Lol you know what, I don't even know what the magic tick is, I somehow missed that post or I forgot it, hey at least I'm honest, can you explain it to me? Thanks!
From my understanding, it is one tick above or below the signal bars high/low. I'm just not real clear if we should wait for a micro-pullback-I'm talking seconds here-or just enter at the magic tick price. I'll be back later...Thanks!
Ok I tell you my rule, say the red dot bar low is 2000 i place my stop limit short at 1999.75 Is that the magic tick?