I pretty old myself! Sometimes I will do odd things to highlight what a wrong action can do. Take that second trade today. It was a BO but not an extremely good BO. I had more than one chance to exit with a 1 point scalp but I got greedy and held for more. It went against me and I had to average down to enough get out, with a profit instead of a loss. I should have taken that 1 point profit considering the BO wasn't strong and just stalling around. Grab that profit and wait for another opportunity! My technique is to scalp 1 to 8 points over and over.
Just remember 1m charts require faster decision making. And a big bull bar or large bear bar on a 5 min chart is a trend on a 1m chart and can have PBS on 1m or no PBs, and is also likely a PB on a 15 mi chart or 30m chart.
Thanks for the detail answer. I like how you use the "noise" action of the index on your side. Do you always enter your original trade small so you can average down when the market goes couple level against you?
Good Evening volpri, How are you doing sir? First of all, I always appreciate your technical post and your comments are joy to read. Thank you Question for your please. How do you make the decision to exit for 1, 2, 3, 4, 5, 6, 7, or 8 point? In my trading I tend to always keep my exit points the same. Is it based on the A. current price behavior or price dynamics or price momentum or/and B. trade performance or previous trade was a loss and need to make more money to recover loss. Thank you for the response.
Yes. Probably 8 times out of 10 I start small. Occasionally, I am all in at one wack. Starting small allows me to be able to capitalize on averaging down opportunities while controlling my risk.
My decision to exit is based on how I read the momentum of price the moment at the level that price is at, at the moment. That includes resistance and support levels and how price acts when gets there. I have no set amount, dollar or point amount. The minimum scalp is one point. If I don’t think I can get one point then I figure it is not worth taking the trade. In short I let PA determine when I exit. I am interested in “how” price was made as I am interested in the distance or size of the move. And that doesn’t mean all big bars. Some of the strongest trends crawl up or down but they are relentless. Most of my trades get me 2 to 4 points. Some get me 8 or 10 points. I firmly believe in taking what the market hands because it can “poof” disappear in a puff of smoke faster than I can sneeze. I am a strong advocate of locking in profits quickly. I can always enter again with a new trade should a move continue that I have already exited with a profit. This modus operandi renders me a high win rate.