Why? For my own benefit & also hopefully to change people's mind on averaging down which is totally risky to our money, idea is to reduce risk, not increase it ImPO. My main lead is histogram (MACD) patterns involving double/triple peaks/troughs leading to a cross of centreline & I am not bad, still a piker, but not bad would be probably a fair evaluation of my skills trading short term charts, but I love the idea of participating in longer term chart's oscillations, main obstacle (now objective) is to minimise risk & maximise profits staying with 4 hour chart's initial signal for entry. Exit will be in a form of a reverse trade based upon presense of an opposite pattern. 4 hour chart will be used as a lead to THE DAILY chart's patterns, so I suppose it's trading both daily & 240. These will be real 1 lot YM trades. Risk management: -10 points. Entries: Upon price hitting same level Targets: At least x10 the stop level I guess I better post a picture, worth a 1000 words some say <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1931661> Please don't try to look at the chart's hypothetical entry arrows, as actual entry will be taken of the 240m chart, which will be providing lead into daily chart's patterns, comprende? Best to all! Stay Happy, Positive & Never Give Up!
Let's discuss future ones, not past tense TY! BTW I take no credit for any of this, it's information I have borrowed from books, articles, some ET & some of my own work has gone into this as well. Hopefully this will also prove that standard TA works, it's risk mismanagement that casuses people to abandon TA & seek other stuff.
sure, looking forward to it! I thought you could have provided a chart for the last few days to illustrate how the things might have worked out while the memory of the market action is still fresh on people's minds.
I'm looking forward to this thread. As you know, I follow similar patterns as you on the smaller timeframes... hell, your posts got me into them! It'll be interesting to see if it works as well on the larger ones... could mean less time in front of the screen if it works out
I reckon at the VERY worst I'll be coming out b/e, daily chart patterns provide quite an extension to range expansion, it's how we manage a trade, personally I do not want to go for large stops off support & resistance levels, even though that would have been more logical, I just want to limit risk down to the absolute minimum without having to sit on a crocodile egg Of course my man, less time in front of the screen, would mean more time on our hands...more time to spend with our women. That's a good thing, right? If any wonder whether I can spell the word causes, they will not be mistaken, I just suffer from the fast finger syndrome.