LOVELY, just lovely. What in god's green acres does your "attach" mean? I hate to bring this up, but i don't suppose the thought has occurred to you to annotate your lovely, just absolutely fricken tootly, lovey graph.
I didn't read the entire post to see if any body mentioned this yet, but your idea is basically parallel to the point and figure (X&O) charting method. I've been using Dorsey Wright for their charts from sometime now, and have not made any trade decisions using point and figure, but I could see where if someone were to find the right combination of enterance and exit points, the two may be valuable.
theoretically it is true. but one step missed, you kissed your life and dead. take an example about RDN or ABK, if someone shorted two DOGS from 5, then use the gain to short more at 4, then at 3 using the additional gain, then do it at 2, then at 1.5, ... use his full overnight margin, that do yield a fortune in just one month! but I doubt no one will play this gaime like that, if some positive news leaked, the market next day may at $10, you end up owing the market 1.0 million! additionally, so nicely trending market is very rare, that is lottery play!
My idea was to try to initiate a discussion as to methods for adding to a winning position. Fibo was used to get to a large position quickly. Nothing special about it. I just wanted read how others add to their winners and maybe compare notes. That's all.
Thanks for the post. You would not have to always be long. You could use a reversal system to switch between a long and short position, but never flat. Or you could trade multiple markets and be flat most of them and just initiate positions in markets that breaking out of their range (a la the turtle traders). Granted all elements of a trading system (markets to trade, position sizing, entries, stops, exits, etc) are intertwined but in this thread my idea was to focus on initial position sizing and changing your position size as price changes.