Hi FT71, I don't like the price action that lead into the Dark Hammer Line. Thus, it wouldn't have crossed my radar screen as a Bullish Dark Hammer Pattern. Among the prior three intervals is a white WRB that was the peak close in that upthrust that then pullback a little until the formation of the Dark Hammer Line. I prefer to see smaller bodies in between the white WRB and the Dark Hammer Line... Smaller via comparing the bodies to the long lower shadow of the Dark Hammer Line. NihabaAshi
First off all, let me say I greatly respect you as a trader and have enjoyed all your posts, and private discussions I have had with you about trading. However, I would have to question whether one should be managing trades according to how you have traded that day. The market doesn't care how you have traded. I would think it would be better to manage trades according to what the market tells you. Just my opinion.
http://charts.dacharts.com/2005-08-25/0825-1.png RED HAMMER http://charts.dacharts.com/2005-08-25/0825-2.png DONT KNOW WHAT THE HELL THIS WAS. BUT SOME TWEEZERS, ANYWAY LOOKED REALLY BULLISH. Comments on trade management would be especially appreciated.
Completely agree. Yet...you misinterpreted what I said. Trades are managed and adjusted accordingly to what the price action tells me. Any adjustments due to greed or fear are made in reaction to key economic news... I've already stated earlier in this thread and in many other threads how important key economic news reactions are important to price action only traders... Which includes traders using candlestick analysis. The adjustments are either via WRB analysis, position size analysis or both. NihabaAshi
Oh ok. Sorry for the misunderstanding, I must have read it wrong. Thanks for this thread, perhaps one of the most educational on ET. You are very generous sharing so much of your trade method with those on ET.
http://charts.dacharts.com/2005-08-25/0825-1.png What's the red dot exit (3rd exit) and why so late after a price decline ??? I think the Dark Inverted Hammer that occurred three intervals prior to that 3rd exit was a white (green) WRB prior to its completion as a Dark Inverted Hammer Line. http://charts.dacharts.com/2005-08-25/0825-2.png Looks ok to me although I don't know if you made any adjustments between the pt WRBs. Based on the above charts with three exit lines in each...looks like your exiting in 1/3. What was the "feeling" you got from reviewing your live-recordings ??? Did any of those pt WRBs occur at/near or as a reaction to any key economic report release ??? Let me re-emphasis the importance of the below as explained earlier in this thread... * Live-recordings * Key economic reports You cannot learn how to make adjustments in your pt WRB (greed or fear) via hindsight charts alone. Your pt1 WRB occurred just prior to the 10am est Help Wanted Index Report... http://online.wsj.com/public/resources/documents/b-econoday.htm You then banked some profits at that pt1 WRB... Price then moves higher and then pullsback into the price area of that pt1 WRB... Does your live-recording or your memory of the price action of the pullback tell you its stable price pullback, any bearish signals or anything to create fear ??? Did you get any clues from a different chart interval about that price pullback to create greed ??? How was your trading prior to that trade signal...discipline and following your trading plan...profitable or at a loss for the day ??? I remember you asked about volume before...where you analyzing the volume and price action of EuroFX as that trade signal or trade in EurUsd developed ??? After you answer the above questions for yourself... You can determine how you would interpret a pt2 WRB, pt3 WRB and so on... Via either leaving your chart interval the same as pt1 WRB chart interval, increasing your chart interval or changing the number of contracts for the pt2 WRB exit, pt3 WRB exit et cetera. The above are things that will tell you about your trade mangement, help you define a trading plan for such along with helping you learn how to adapt from one trading day to the next via getting into the habit of answering those type of questions for yourself... Day after day as you traverse from one pt WRB to the next pt WRB. NihabaAshi
Hm, I've been getting a pretty high win % with these lately. But the gain yesterday was 22 pips on 8 trades - less than 3 pips on average trade. With 1.5 spread. Not good eh? I also noticed that reversing after a loss lets you recover some losses. I post a chart of such loss/reversal: http://charts.dacharts.com/2005-08-27/0826-SAR.png
August 29th Monday CME Emini - ER2 Bullish White Hammer Pattern Sub-Group: continuation signal With Hurricane Katrina causing havoc on the U.S. Gulf Oil and Gas supplies... Such was the big picture of the trading day along with the decline of Light Crude Oil (CL) after its gap to the upside while Natural Gas (NG) fought hard to keep its upside gap gains. In addition, have you ever heard another trader saying its not wise to trade the news because its already priced in ??? I prefer to see it as don't hesitate when you get a trade signal that was obviously news driven. NihabaAshi