Learning to read Price Action with P&F Charting

You sir, are a scholar and a gentleman. I'll read through the thread after market hours, but just wanted to mention great job.

st

P.S. I applaud your supreme tolerance for the village idiots that will no doubt show up!

 

Thanks for adding this, I was interested in what you'd say about profits on that trade. Do you use trailing stops with your stop moving to higher low method, or either-or?

Also, getting away from the method a little, could you ballpark the risk you take per trade (most interested in intra-day futures)? As in, what money management do you use with this method of trading?

 

Thank you for those kind words. If you didn't know already, I value your opinion a great deal.

 

Since I trade off of a .5, .75, and 1.0 stop, and since I do not want to be stopped out until some sort of bearish sell signal is given(assuming I am long) the absolute mininum stop I would have is 3*.5 +.5 if I was trading off of a .5 chart.

3*.75+.75 or 3 points on a .75
3*1+ 1 or 4 points if I taking my signal off of a 1.0 chart.

I should mention that I do add contracts on pullbacks to get a better price basis, but only after that reversal has then reversed. You could just continue to add in a reversal column, but I like more of a sure thing. No one ever knows when the current column is going to end, so I like to see that reversal column end before I commit more contracts to a trade.

All of that may have sounded confusing so if you need an example let me know.

edit: for those that don't want to take that much risk, I do have scalping methods we will talk about also which will not have as much risk.

 

I understand what you're saying, but I don't think I was clear. I attached what I was meaning. Where do you move stops after you're in the black? (assuming my chart if right.)

Also, are all exits "stop outs", or will you have pre-defined exits?

 

Since we have only 1 x column to beat before a new high was reached I would have trailed this stop by my reversal amount or 3 points.

On most setups I use targets. On this setup which has the greatest potential to become a high flyer I trail by whatever would be the first reversal

 

sorry forgot the chart

 

JCG has been a good fill thus far.

 

Very clear. Thanks a lot.

edit: Your JCG trade looks great now

 

HG,
let's assume you miss the entry on JCG.
What would you do then if anything, or you just let it go?

Thanks.