Scataphagos, Great job on your accomplishments and thanks for sharing. I have a question for you, I would like input on my exiting strategy. Today on crude oil, I entered short at red arrow, stop loss above orange arrow. It has always been a challenge for me decide when/where to exit a position for profit. I do not like using predefined targets. I like for logical (less emotion decision, less opinion) reason for exiting. So recently, I decided to use a 7 ema for exit strategy. For this case, when I enter long and bar close above 7 ema, I place stop loss 2 ticks above bar high. So for this case, I use price action to enter and set stop loss placement, and an indicator (EMA) to subjectively exit the trade. I do not use the indicator for no other reason, but for my personal reasoning. What are your thoughts on this?
1. You're talking a range of what, 30 cents? That's just noise. 2. I don't like MAs usually. Buy/sell/risk decisions should be made on "support and resistance" + a buffer to allow for "overshoots". There are only 2 logical places to exit a position (profitable or otherwise)... that's when you perceive either "exhaustion"... fading into an extreme, or "breakdown"... suggesting the trend may have reversed. Everything between is just "hope and gut"... not a good way to trade.
good question i am 62 years old so now i do everything for enjoyment eat drink trade.....i would have liked to make money. but not many people are highly successful in trading.......that is probably true in any other activity as well. but right now i am only trading to be busy...
ema should not be used in tight channels.....that is a tight channel. you are studying Brooks course....in tight bear channels which is a strong BO on a higher time frame only sell..
any signal is only as strong as the context that precedes that signal if the market has not gone above a moving average for a 'long' time, then if it goes above it, it signals a weakening of the trend........ just a break of trendline does not make a reversal....... if market goes above a support and then breaks below it then that is a failure and you could sell ...the support may be a trendline a pivot....ma if the context is right...... then you could take any signal ....it does not matter if you use S/R pivots ma trendlines.
well had i known that sooner . . . Here's a 'funny' story by trader Steve Bigalow about a Polar Bear. Between jokes, Steve talks on the dreaded 200, 50, 20 MA, and 8 EMA, all the while leading up to the Penguin Joke that follows some minutes after the Polar Bear Joke. cheers
thanks 1hour is too long right now but perfect for the weekend will use it to kill time over week end which incidentally i hate