Hey guys...ok so everyone can agree that to be successful you need a good risk/reward scenario setup... be it 1:2, 1:3 whatever (side note what do you think is a good ratio)...anyway I use the ADX to get out so when it starts getting flat that is when I get out (IDEALLY) so how would you suggest I setup my risk reward parameters when it isn't based on a number like I will risk 20 cents to get 40 cents? According to my strategy I would be leaving early if I get out at 40 cents and the ADX is rising so do I have to manually watch every single trade and not have any parameters setup and just go with the flow each trade?? Thanks!
It's not a rule but it's a good assumption that those that risk more than they shoot for end up losing money so don't do it.
I'm not really sure what you're talking about. I'm talking about generally risking 10 cents to win like 25...so with the ADX it's not cut and dry and I'm wondering what people do that use the adx to make it more structured.
I would forget the indicator and just use support & resistance. If you're in no-man's land (new all-time highs or lows) watch price action @ TL or fib extensions.