IF you plan to use the stops correctly (to avoid a catastrophic event) then you describe the stop offset method exactly as it should be used. Simply draw parallel lines the 'offset' distance from the channel. However, if you plan to use the stops as an 'exit' strategy (because you cannot monitor intra-day), then you might continue to use the 2%. I don't recommend using stops for exits. Hope that helps. You can locate a list of available video files here. - Spydertrader
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I did catch CBEY today and so far I'm very happy with it. It is well above peak volume already and so I'm not too sure what to do. I remember to read that normally one can get a better price if selling the next day at the open, on the other hand price is supposed to go down again after reaching peak volume. Any ideas what would be better in the current situation based on past experience?
With all due respect, I recommend following the advice provided in the following phrase ... "When in doubt, get out." Of course, Your Mileage may vary. - Spydertrader
I stayed in only because I'm trying to strictly follow my system, but I think the chart/indicators point more towards exiting.
I ended up picking up a really small position (1/6th my standard size) earlier in the day after volume continued. When my position came close to 6% then started to reverse, I debated taking off some shares. In the end, I drew the same channel that you've drawn, adjusted my stops, and decided to hold. It hasn't broken out of the 30 min channel, volume was definitely picking up towards the end of the day, the stochastics look strong on the 30 min (MACD slightly negative) so I'm holding. I think some other people had found that selling on the day it reaches Peak Volume yields slightly better returns. I guess we have a chance to test that theory out