T28, Thanks for sharing these examples. Just a few questions: a) I am assuming the aggressive short you referred to in the first example is where the vertical white line of the cursor is positioned about 09:30am. What then is the significance of the black arrow/white cross shown at the start of day at 08:30am? b) For this short, is the exit trigger when price closes above the 3 SMA, about 09:42? c) If the 3 SMA acts as the exit trigger, then, can you please confirm that there were 4 scalps on the way up and 4 on the way down in the second example? Thanks again. Regards PotV
No the vertical white line is the open of the session The re-entry signal is when the price pops below the 3 SMA (other white line) about 20 minutes after open This is virtually identical to the floor traders method explained here: http://www.trading-naked.com/FloorTraderMethod.htm except the 3 SMA will get you in at a better price In the 2nd example there are 3 long re-entries and 3 short re-entries after the intitial Zero Line crosses
Trader 8? Do you sclap options or reg. stocks? If you trade reg stocks, how many shares do you buy at a time, at what price ranges?
No none of that, hard enough concerntrating on the ER2 at 4 in the morning without adding anything else
Good stuff T28. It's almost clear now Last thing, when you're short, do you use the 3 SMA as an exit trigger if price closes above it and you're inside 10 minutes? Thanks
You certainly can but there are no hard and fast rules on re-entry trades, some days you know it's just tearing away and you may hang in there longer, otherdays the market is giving you nothing and you have to scalp it, thats all part and parcel of trade management, or you may come up with your own exit strategy