yep .....very nice explanation. but it is not a two legged PB it is a contracting triangle and this triangle pattern can be tricky because you have both sides active within the pattern and so 2-3 breakouts may fail. that is why you need a strong trend to go with it aggressively. the strong major trend counteracts the two-sided nature of the smaller pattern, so it is likely to behave predictably.
if you are trading 1M then just trade the market, which basically means go with instinct.it just moves too fast no time to even think. and the moves are small because the pattern is formed over a short time. as such patterns which form fast result in moves that are probably small because lesser number of traders are involved with it. going with instinct: i used to do that for years but where i failed is that i had no control over my losses. you can make huge money because you are scalping a large number of trades but you need a very high win rate and low brokerage. i would not advice anyone to even try it: waste of time but make sure you do not waste your money as well so do it in demo. KING of this scalping and flipping was the 'EURO fliipper'.....Rotter made average of 10 million every year for 10 years trading 100,000 or more every day. so it can be done
Hello padutrader, Thank you for the EURO flipper Rotter information. That is AMAZING. So why you not follow the KING of scalping Rotter and learn from his books?
Kidding aside, thank you for the coaching. Your comments are appreciated, even those that poked fun at me. On another note, there must be good rationale why most of you regular day traders are trading with 5M or longer time frame. After I finish my 1M demo, I will switch over to 5M demo and restart my paper and small live trades all over again.
yes..... i do not think the mind can process that much information that fast. but if it works for you do it. i do not know what time frame Rotter used but he used to trade average 100000 contracts a day. and regularly made 7-10 million over a 10 years period trading is very individual and if it fits you, do not worry what others say. the funny thing is that all charts, on any time frame have the same patterns so theoretically it does not really matter, what you trade, time frame wise
. FWIW, I found that my system didn't give very many entry signals per hour on 5 minute charts, and that 1 minute charts were a bit too fast. Using 2 minute and 3 minute charts turned out to be the Goldilocks solution: not too fast and signals occurring in a timely manner.