I stopped myself out earlier at 106 08. My original stop was 106 09 but it seemed stupid to give up an extra tick.
At that point I should have been considering that I was wrong. General rule of thumb is anytime price goes in your favor and then comes back to your entry, and continues past your entry, you need to consider that you are wrong.
Ten Year 5.2% short term resistance? I am done picking tops and bottoms. I caught a nice ride this morning in ZB, made back yesterday's faux pa......paid for lunch and bait for this afternoon's fishing. What more can I ask for? Good fishing! el surdo
0847 CST Just completed a very quick 1 ZB short trade at 106 08 and out at 106 06. I will take a break for a bit and come back again to evaluate the remainder of the day.
About right as rules of thumb go, but the devil is in the details. By how much do you want to see it in your favour before you apply this rule? Having applied it, how and when do you exit? It's one of those things that are open to interpretation and changes of mind while in a trade, isn't it?
JP: Did you leave the Troll filter off again? I told you, leave a few cheese nips right outside the room and they won't come in! Jejeje
Actually, I've thought a lot about the actual rule over the years. It is pretty straightforward. I enter a trade. Statistically, I know I'm good for a minimum of 4 ticks. If the trade goes in my favor 4 ticks and comes back to my entry, I get out. That is the rule. I don't always follow it. For me, the only time your statement comes into play is in the first few seconds, or minutes of a trade where price hasn't moved more than 2 ticks for or against. An interesting observation I've made is that the rule makes a good reversal indicator.
I had a 1000 CST neural net signal based on turning point calculations. I wasn't here to take the trade so I went short only 2 ZB 106 06 now at 1007. This may only be good for a couple of ticks. The last hour has been nothing but a very narrow range. Hopefully the best range of the day is not behind us.