set your stops below the last higher low. make sure you get a higher high before moving your stop. Or use a percentage stop. If you get stopped out and the trend resumes, you can always jump back in. Use swing pivot points to set stops. There are plenty of ways to do it, just decide on your pain tolerance for giving up profit.
i can see on the chart that it was a fair call with all that follows but my placing a sheet of paper over the chart to block off all that followed 09:30 i am not sure from that "snap shot" why you went long - a breakout possibly but not enough on that chart to see so what made you think it was going up? which indicators? or have you just found a chart that has a uptrend in it and posted that as an example, trying to figure out how to avoid those corrective moves - if you have it's not a problem but if this is the case you need to first ask the question "how do you spot a trend"
ok I need an answer how do i spot the trend to me it is an upptrend with some corrections it is not so hard to see now after it has formd it is harder from the start to now if it is a trend or a chappy market. Do you have an answear? Regards
there is no correct answer to your question, it is a case of finding something that sits well with you, the markets you trade, and the timeframes you use. however let me start with a couple of ideas for you to look at and I am sure you will get plenty of information from other people. Breakouts - easy to trade and clear to define where your stops should be - one tip thou, especially if using daily breakouts look at the 20 or 30 day average true day range - if the market has already made it's average move and you get a signal be wary as fakes often occur at these extremes and will just chop you - best wait for a fresh day before getting involved. Guppy's - a collection of exp moving averages, entry signals are when they converge on one another exit signals are when the price crosses the slowest of the shorter term averages. Bars outside of all the averages tend to point to a short term over-extension. You need to look at the various markets you will trade and the timescales to see how the signals are best interpreted for you. Divergence - higher high without a corresponding higher rsi (or lower low etc) - stops should be within your risk parameters but on some markets a good indicator of trend reversal.
Is there any other indicator that is like the ATR because i dont have it in my software. I´m most intressted in trading the e-minis on 1-5 minutes and i wold like to have trades that are often and for 2point or more. Regards
There's no magical indicator that will give you often trade signals that produces 2 points of more in profits. Besides...what's your definition of often ??? You are heading in the wrong direction with your thinking especially concerning the Emini Futures. I highly recommend you stop looking at indicators as an easy fix to the fact you have no trading plan. There is no surrogate mother for trading without a trading plan. Here's a 5 trading day exercise you should do... Stop trading, remove all indicators from your charts. Only thing on your charts is just price and nothing else. However, you can leave volume on it if you want. What your Emini Futures in realtime with no indicators on your realtime charts. Also, at the end of the trading day for those 5 trading days... Print out charts of your favorite trading instrument among the Emini Futures...print it out in 3 different chart intervals. Get a pen or pencil and highlight any chart patterns that appeared from the following website... http://www.chartpatterns.com Next...on those same printed charts... Write in and draw a arrow to the time on your chart when the following key economic reports appeared from the below website... http://online.wsj.com/public/resources/documents/b-econoday.htm Review and study those charts before you watch the Eminis the next trading day. My point with this is to give you a new perspective and you can return to your search at a later date for an indicator that gives often trade signals while producing 2 points or more when signals appears. Now...if during the 5 day exercise you find a few patterns you like how they performed when you saw them on your printed charts. Start developing a simple trading plan around that chart pattern... * Initial stop/loss protection method * Trailing stop method * Profit target method I also hoping this will help you feel more comfortable in reading charts... Something you will still need to overcome regardless if you use indicators or not. Once again...please don't trade anymore because trading without a plan is financial suicide. Last of all, if you didn't have any problems with indicators... I would not have made the above suggestions because it sounds like (based upon what you've said so far)... Your venture into indicator land has been a dead end so far. P.S. Nothing wrong with indicators if used properly. NihabaAshi
Many times that would be giving it too much leeway. In an uptrend, price shouldn't go too far below the last higher *high*. How far below? Depends on the market, you have to do a study.
Hello, Nihaba made a very good post I fully agree, The best way to stay in the trend is to not care. How do you not care if you are in a trend or not? Once you start trading multiple contracts, you can take profits once you see high volume buying or high volume selling bars on your first contract. Then leave the next contract to trend or dip or anything the trend likes to do above your entry point. But first you have to make sure your entries on your first entries are usually correct so you don't lose 2x the money when trading 2 contracts. Pay particular attention to the volume during the trend, if its not in sync with what looks right, then you know this trend has something wrong with it. spikes are no good in trends. spikes are only good in breakouts and fakeouts. I also try to keep as few lines as possible on my charts, but its nice to know what other people see, other then that, I try to keep my chart clear of BS. Price/ VOlume ,50 ma , 9ma , and pivot points thats all and other resistance lines I draw out myself manually. during a big fall I might chart out a fib chart to see retracement lines. Hope this helps
NihabaAshi Thanks for the link to the chartpatterns. I shall do as you says and try to fins patterns. But i wonder if there is not a simpler thing than the patterns, universal patterns I have try to find them higher highs and lower lows for example or somthing like that with fibonacci. If there is nothing whrong with indicators what do you recomend for indicators and / or settings. Maybe it is not whrong with the indicators it is just me or the settings that fails. How do you use the indicators right and what settings. The indicators that i think has a potential is BollingerBands, EMA, MA and MACD. Regards
coolweb Thanks for your sharing your thoughts, but i´m not sure I undestand how you mean can you show it on a picture? Regards