After trading a decent auto system the past year, Im considering trading discretionary. Time traded will be the 8-12 est window Strategy - use 2hr/dailies/monthlies to to lend 'contextual reference' and outline areas of hard support/resistance. Favored entries will be signaled off the 5 min using long term trendline confirmation (third bounce). Regular entries made off the 5 min off the short term trendline (5min, third bounce). Exits - warning after a failed traverse. Hard exit made during confirmed trendline break. Thats it. I've been drawing intraday trendlines long enough to become skilled and have seen it work time and again. Im sitting on the fence. Any other discretionary fx traders out there?
why wait until the third bounce to confirm the trend? Why not trade off the 2nd bounce of the new trend?
Not that it matters, just semantics (like almost everything else in here). But I would differentiate between a fully discretionary trader and a trader of setups, however loosely defined.
Because it never seems stable enough to enter with a tight stop; I'm assuming you're reffering to bar#4 in jack hershey speak. I find third confirmations offer the highest prob for success. And i dont like being whipped around a lot waiting for the trend to 'find itself'. What do you think?