That happens a lot and it just keeps going down. Do you use an objective measurement for "sharply declining" or do you just do it by feel?
I wouldn't buy into any instance of a sharp decline, it had more to do wit it going south of the lower bollinger band so I take sharply declining + going south of bollinger band was the indicator. Perhaps you're right that it doesn't always rebound when doing so.
Price goes significantly south of the lower BB and "keeps going down" quite often, that's why I was asking if you had a way to quantify when to enter rather than "price went south of the blower BBand."
instead of using fibs to avg down why dont you let the market set a range for say the first hour and either buy or sell certain levels, you might find that to be alittle more successful and probably less stressful.
That's kind of ambiguous. What criteria are you using for "certain levels"? How do you know whether to go long or short? Are you talking between the high and low or above the high and below the low? Are you entering on breakouts or on retracements? etc. What qualitative data have you used to arrive at the conclusion that it might be "alittle more successful and probably less stressful"?
for intraday by using say the first hour after a market opens that sets a range, now you can put a buy order above the high or below the low this is for the breakout trade. But at the same time i would set a fibonacci retracement from high to low or vise versa for the range of the hour or you could use the range of the day. Now if the market goes up or down from the ends of the range it could give you a retracement trade from the 50%,618,75, or 886 lines. but also if it does break out of the range your better off not trading do to the fact it will probably be an inside day. you could enter the trade from a breakout or retracement. but I always look for the 50%-886% line retracement which could be get out lines for profit or for stop loss, usually if it breaks through a 50% up or down against which ever way you are in a trade I usually get out because it has probably failed. The qualitative data is that most successful floor traders used the breakout system in one form or another, Mark Fishers system is based on it. I would say he is pretty successful. But alot of this trading is reactionary, you need to be a marine so to speak and adapt and overcome because conditions are always changing in the market. It is definitely more hands on active trading and very hard to program this style of trading. here is a daily gold chart with fib extensions and see it hit the 1.886% on downside and take off to the upside clearly showing a hugely over sold situation
Why do I detect a little hostility in that post? Day trade? I'll probably eventually get back into it. I still trade long term but I've been flat forever cuz the market keeps going up.
lots of lines on that chart! You're talking about an intraday system and posting daily charts. I'm confused.