Hey sunnyskies, I usually do one of the following: * Reverse my trade * Close my position eventhough my stop was not hit * Another option I failed to mention To go into a little detail about the above. If its one of my best trade signals that appears after I'm already in a trade... I'll reverse my position eventhough it didn't hit my initial stop/loss or trailing stop. Another option (something I discussed in a prior price action only thread) that I've been using whenever I'm prepared for such... If I'm at a profit and a trade signal appears that's against my open position... I'll tighten up my trailing stop and take a trade in another trading instrument. For example...lets say I'm short ES and then I get a long signal in ES... I'll go Long in either YM, ER2 or NQ while protecting my profits in the ES short position via tightening up my trailing stop. I only do that for my best trade signals. Nothing magical nor too difficult especially since I watch ES, NQ, ER2 and NQ at the same time on my monitors. NihabaAshi
Hi all, Ok, with hindsight it's obvious that my analysis @ EOD on Wed 22nd was wrong, but this is how i read it. Looking back at the resistance shown by the Bearish Engulfing pattern on 7th / 8th April, 61pt Up day followed by a drop next of 84pts, the highs of these two days were 10,557 and 10,553 respectively, with the close of the Up stick of the 7th @ 10,546. The 4 pt body (Doji) on 2nd June opened @ 10,548, closed @ 10,553 with a daily high of 10,559. This confirmed strong resistance which IMO was broken on the 16th June. I agree that the long upper shadow on the 22nd showed that the bulls, as yet IMO, had not gained the upper hand, but the 2 support points i mentioned in my previous post showed that previous resistance was now support. Of course what happened on Thursday showed how wrong i was and my trade was stopped out @ 10,550.