Susana, I myself just enter at my trade signal, ie, one tick above/below the high/low of the 3rd bar in the pattern (like seen in my charts) do you do the same?
I do it like ST does it, unless the PA is exceptional then I just do 1 car @ confirmation and might miss the 2nd. Susana
Took me YEARS to be able to this. Chasing and fading used to account for 90% of my losses. Pretty much avoid both now, except in extreme cases (which are completely subjective). I just let a lot of trades go. The markets are not going anywhere. they will be there tomorrow.
This is just great! Right when I think I've finally kicked the habit, along comes a thread like this...one that actually makes some sense. The "Sirens" are calling me back again. Really is a very informative thread. Thanks for sharing.
Lucrum, The 3 bar reversal, also known as "3 bar Fractal" or "Market Structure (Low or High)", is identified as easily as extending and then pointing your 3 middle fingers either up or down; that is the sign of a perfect 3 bar reversal. You should take into account the 4th bar since it serves as confirmation (acceptance or rejection) of that pattern. Here's a link on Fractals (or whatever we'd like to call them) that I thought would come in handy for those of you who are interested: http://www.enthios.com/Primer_buildingblocks.htm Regards, Tex
guys, do you a draw a trendline at every reversal? I tried that today on msft, i obviously ended up with a lot of lines. I also saw some lines where there was significant pressure just because of previous reversals.