Distinguishing between retracements & reversals

Interesting indeed!

 

db could you post a chart of today's breakout trade?

 

Using what criteria for entry and exit?

 

The post you quote was written yesterday. The post you wrote was posted today. If you can stop being cute long enough to tell me what you want, we can go on from there.

 

you could try this:

put a 20 sma on your chart. price will follow it down in a trend. once the trend gets weak, it will break it. don't exit yet. wait for price to stop retracement and come back across 20 sma. now treat the furthest price on the break of the 20 sma as the reversal point. i think this was super_ego's method....

 

Actually, that's Welles Wilder (of ADX/SAR fame) . . .

 

grail method from Linda R.

 

That's not her variation. She also includes use of the ADX.

 

On good method for determining whether it is retracement or reversal is Daryl Guppy's Multiple Moving Averages.
http://www.marketanalyst.com.au/kb/article.php/Guppy_Multiple_Moving_Average/