Are you more comfortable buying or selling previous highs?

Discussion in 'Trading' started by 1a2b3cppp, May 16, 2013.

Which entry method do you prefer?

  1. Buying previous HHs - uptrend, baby!

    9 vote(s)
    45.0%
  2. Selling previous HHs - double tops and 2t's (I know apostrophes don't make things plural but "2ts" l

    8 vote(s)
    40.0%
  3. I only trade JH method

    3 vote(s)
    15.0%
  1. Here:

    [​IMG]
     
    #21     May 18, 2013
  2. d473n

    d473n

    Personally for me it depends on the bigger time frame. If I see price has a positive chance to run after taking out the Previous High/Low then I may be inclined to add, take profits or hold. If we are at major sup/res I usually wait and see what price unfolds and make a decision based on that action.

    It really all just depends on my current situation at the time, keep in mind my decisions are discretionary. So to answer your question, I am comfortable with both because in the end I trust my experience to make logical trade decisions with positive R:R, even if that involves fading or just playing the range. If I am wrong, I usually find out pretty quick and move on.
     
    #22     May 18, 2013
  3. Buy low sell high. By the time you go long, hoping for a break out I would have already made money.
     
    #23     May 26, 2013
  4. deaddog

    deaddog

    How do you know where the low is?:)
     
    #24     May 26, 2013
  5. Lucrum

    Lucrum

    [​IMG]



    As I mentioned some time ago, I'd buy the second graph. Stop would be somewhere just below the apparent swing low just forming. I'd then tighten the stop as price approached the previous high. If price breaks through and runs, great. If it fails and reverses or gives a false break then reverses who cares. My stop by that time protects break even including commission and slippage. In any case I can sit back and objectively just watch, playing with the house's money so to speak.
     
    #25     May 26, 2013
  6. So you buy price starting to go back up after a retrace.

    Well that's a good strategy but wasn't one of the options :)
     
    #26     May 27, 2013
  7. if u're into doing this swings high/lows, why not add what people who do that usually add : the famous fibonacci. Now apparently depending on how far it runs back inversely to the first move ( 23, 38, 50, 68, 75 %), some people make decisions on buying the high or selling the high.
    But then some people say that it works sometimes, and sometimes it does not work.
     
    #27     May 27, 2013
  8. deaddog

    deaddog

    Pretty well true for every set-up. :)
     
    #28     May 27, 2013
  9. heypa

    heypa

    Keep it simple.
    If you can find a trend longer term than the examples. Follow it by either buying the dip upon movement in your expected direction or the new high on breakout.
    It's not how you enter that counts. IT'S HOW YOU GET OUT!!
    After all you only make money when you can bank it.
     
    #29     May 27, 2013
  10. Lucrum

    Lucrum

    Yes. Generally it's less risky and if it tests the previous high by that time I'm playing with the house's money so to speak.

    I know, but it should have been.
     
    #30     May 27, 2013