I have a some questions about how these trades are placed.
1) Do you see the resistance ahead of time and place a limit order on the line with appropriate stops and such? This would mean you are basically assuming the market will bounce as it nears a s/r line.
Or
Do you watch the price hit the line and react, then place a market order at a precise moment? This would mean you may get in a little later, but are sure that a bounce is actually going to occur. This would also mean you have to be at the computer at the time of the bounce.
2) Also, is this trade more of a scalp trade? Meaning you are not trying to pick a necessary reversal, but a large enough bounce to snatch a few pips, and if you get a reversal, all the better?
Im just trying to understand this better, thanks for the help.
1) Do you see the resistance ahead of time and place a limit order on the line with appropriate stops and such? This would mean you are basically assuming the market will bounce as it nears a s/r line.
Or
Do you watch the price hit the line and react, then place a market order at a precise moment? This would mean you may get in a little later, but are sure that a bounce is actually going to occur. This would also mean you have to be at the computer at the time of the bounce.
2) Also, is this trade more of a scalp trade? Meaning you are not trying to pick a necessary reversal, but a large enough bounce to snatch a few pips, and if you get a reversal, all the better?
Im just trying to understand this better, thanks for the help.
All I ask for is a chance to prove that money cannot make me happy.