As far as stops go, I am similar to you so it must just be my trade selection http://cdn.forexfactory.com/images/smilies/yim/sad.gif
My biggest problem is I used to trade mean reversion on the ASX index and I find it VERY hard to stop looking for retraces. I am trying to create rules that I can follow to stop this very costly habit.
Agreed, looking for retraces is VERY bad for your equity......wait for a signal
Your envelopes on the MA are they 30 pips either side ? Yes
Are you guided by the colour of the 30MA or do you go long above and short below ?
The colour is just a visual reminder, its where price is in relation to the MA that's important and yes, basically Long Above and Short Below
When the envelopes are touched do you either close your current trade or if looking for an entry take the retrace trade.
The envelope is just an OB/OS guide and a warning that the move MIGHT slow down
As always, I'm looking for "a level" for price to react to and by using the MAs its easy to construct a set of trading rules.
As I've said before, I'm a "reaction trader" and Medici can give explainations of WHY price makes certain moves...
I hope this helps....
My biggest problem is I used to trade mean reversion on the ASX index and I find it VERY hard to stop looking for retraces. I am trying to create rules that I can follow to stop this very costly habit.
Agreed, looking for retraces is VERY bad for your equity......wait for a signal
Your envelopes on the MA are they 30 pips either side ? Yes
Are you guided by the colour of the 30MA or do you go long above and short below ?
The colour is just a visual reminder, its where price is in relation to the MA that's important and yes, basically Long Above and Short Below
When the envelopes are touched do you either close your current trade or if looking for an entry take the retrace trade.
The envelope is just an OB/OS guide and a warning that the move MIGHT slow down
As always, I'm looking for "a level" for price to react to and by using the MAs its easy to construct a set of trading rules.
As I've said before, I'm a "reaction trader" and Medici can give explainations of WHY price makes certain moves...
I hope this helps....
Trading Levels with WRBs