IN THIS THREAD: IronFist learns (the elusive) PRICE ACTION

Discussion in 'Strategy Building' started by IronFist, Dec 2, 2008.

  1. vingbel

    vingbel

    IF

    Have you decided how many HL and HH to wait for before you enter? I saw you posted a number of choices, but everyone told you do find your own style. I'm curious what you're currently doing.

    BTW, I've tried each with mixed results. One trader that I watch and whom has a fairly good record, considers an uptrend to consist of only the established low, followed by a HH, then a HL, then another HH, then one more LH. But he swing trades.
     
    #481     Dec 23, 2008
  2. Exit half the position as we hit a new low. I'll probably continue my ramblings in my own journal,there's probably too many cooks here to be of any help to IF
     
    #482     Dec 23, 2008
  3. Last first, yes and no, depending on whether you are all in/all out or you prefer to scale out. If the latter, you can exit part at a target, exit another part at a lower high, exit another part at a break of your trendline or MA (it doesn't matter about the MA since an MA is just a trendline that moves), and so on. If you place all your money on one bet, you're going to be a lot more nervous than if you take an active managment role.

    But you're still mixing things together. Figure out where and how to enter. If you're using higher highs and higher lows to decide, then you also have to decide how much risk you're willing to assume, because the more higher highs and higher lows you wait for, the closer you'll be to the top of that particular move. And even though you think you're reducing your risk by waiting for more and more confirmation, you're actually increasing it because you're entering much too late in the move.

    Going back to the first chart you posted, and ignoring all the lines (you don't need any of them), where is for you the first acceptable place to enter?
     
    #483     Dec 23, 2008
  4. There is no scaling. I'm trading 1 YM contract.
     
    #484     Dec 23, 2008
  5. vingbel

    vingbel

    Exactly! How many HL and HH do you usually wait for?
     
    #485     Dec 23, 2008
  6. Re: how to enter

    I'm still trying to figure out what is best.

    Say we're in an uptrend:

    - enter after high of current candle breaks previous high of a retracement candle?

    - enter after high of current candle breaks previous swing high?

    - enter on open of new candle after last candle closes above previous high of a retracement candle?

    - enter on open of new candle after last candle closes above previous swing high?

    ^ And that's just taking the smallest timeframe chart into consideration.

    Unfortunately, I suspect the correct solution will be "some of those are correct in some conditions, and others are correct in other conditions."

    And that says nothing or profit targets (see my previous post about that) or stop losses.
     
    #486     Dec 23, 2008
  7. Pretend. If you trade all or none, you're asking for a whole host of emotional entanglements.
     
    #487     Dec 23, 2008
  8. dead on. IF, you might still be thinking of discretionary PA trading as system trading. Two different mindsets IMO
     
    #488     Dec 23, 2008
  9. Keep it simple and keep it specific. Again, using the chart you provided in your first post, where is your first acceptable entry? Or is all of it just a random scattering of price bars?
     
    #489     Dec 23, 2008
  10. I can't answer because it's in hindsight now. So I know the correct answer for that particular chart.
     
    #490     Dec 23, 2008