Hey Scooter,
There are 1 million ways to skin a cat and likewise there are just as many ways to enter and exit a trade.
In the example I am provding the red lines indicate the mroe aggressive or higher risk entry and stop areas.
The Yellow is the more conservative entry location but inherits a larger stop. But also notice this that we could place out initial stop closer at say the same place that we would put our stops for the higher risk entry.
The green line indicates where prices may stall before continuing or be rejected completely. Hence this is why I call it a Red Flag Zone.
I plopped some numbers on there so you can get an idea of how much potential risk and profit is on the table with different entry areas.
And as you said if prices blow on through and never look back well then I will have to wait for the next bus to come along. NEVER chase the market!
Hope this wa hepful.
TV
There are 1 million ways to skin a cat and likewise there are just as many ways to enter and exit a trade.
In the example I am provding the red lines indicate the mroe aggressive or higher risk entry and stop areas.
The Yellow is the more conservative entry location but inherits a larger stop. But also notice this that we could place out initial stop closer at say the same place that we would put our stops for the higher risk entry.
The green line indicates where prices may stall before continuing or be rejected completely. Hence this is why I call it a Red Flag Zone.
I plopped some numbers on there so you can get an idea of how much potential risk and profit is on the table with different entry areas.
And as you said if prices blow on through and never look back well then I will have to wait for the next bus to come along. NEVER chase the market!
Hope this wa hepful.
TV
Thanks TV...
So after the retrace you would enter after price breaks down through the yellow line expecting some resistance at the red flag area.....maybe take some profit or just continue to hold depending on what the larger time frames show?
If the price never retraces and shoots straight down then one should take the attitude of "...well that bus left but there will always be another one coming....and not chase it."
I hope I have it right or learning correctly...tired of being the turkey for feast in the slaughter zone. Sorry for the Thanksgiving Day pun but I just couldn't resist!
Scooter.
Nothing is impossible, with a willing mind!
just kidding, I couldn't resist the pun.
