Dislikedentered short trades at 179.95 and 178.2, sl at 182, s3 exit around 172.5.
conservative trade, s3 might change if volatiltiy drops.Ignored
on what criteria did you made your entry overthere?
- #183
- Edited 1:56pm Oct 15, 2008 1:17pm | Edited 1:56pm
on what criteria did you made your entry overthere?
first and entries following that.
Usually, the maximum possible point in the ceiling(or lowest pt in
the floor) is picked, which in this case was 179(see the pivot pt on the day
candle stick on 10/8/2008) right before everything headed down.
Now as soon as prices start heading up towards the ceiling, use a technical
indicator - atr(10) which stands for average movement for 10 days
to calculate the stop limit. Say if the atr is 600pips(which it was), the stoplimit is calculated as max ceil + 0.5*atr = 179+300pips= 182.
That is the maximum the prices should ever go to with the current volatility after
the ceiling max (179) is reached. If prices breakout above that, it is
then considered a ceiling breakout . Chances are prices would
retract before it gets there. In this case it retracted at 181.2.
Now entries are made 250pips(max fin loss sustainable)
below the stop limit. So 182-250=179.5.
In the previous entry it took a while before i saw the ceiling max (my bad)
and had to make 2 entries to average up to the desired entry pt ...so.
Exits are based upon where the price pivots and every half atr below
that pivot pt is a support level. S1 is half atr below, S2 is 1 atr and
so on. Ranges can go upto S6 or S8 (the floor on the other end)
but traders exit on S1,S2,S3 or S4. Going from S1 to S6, the rewards
increase but so does the risk.
exit on S3 which in this case is 181.2-1.5*550pips= 172.95 or just 173!
-------------x------------
Sorry Greg, for using your forum to answer questions. have
been searching high and low to start my own forum and not getting
anywhere. any help appreciated.
(cheers)
Swing Trades + 120 pips/mo
- #184
- Oct 15, 2008 2:14pm Oct 15, 2008 2:14pm
The trading strategy uses ceilings and floors to establish stop limits
first and entries following that.
Usually, the maximum possible point in the ceiling(or lowest pt in
the floor) is picked, which in this case was 179(see the pivot pt on the day
candle stick on 10/8/2008) right before everything headed down.
Now as soon as prices start heading up towards the ceiling, use a technical
indicator - atr(10) which stands for average movement for 10 days
to calculate the stop limit. Say if the atr is 600pips(which it was), the stoplimit is calculated as max ceil + 0.5*atr = 179+300pips= 182.
That is the maximum the prices should ever go to with the current volatility after
the ceiling max (179) is reached. If prices breakout above that, it is
then considered a ceiling breakout . Chances are prices would
retract before it gets there. In this case it retracted at 181.2.
Now entries are made 250pips(max fin loss sustainable)
below the stop limit. So 182-250=179.5.
In the previous entry it took a while before i saw the ceiling max (my bad)
and had to make 2 entries to average up to the desired entry pt ...so.
Exits are based upon where the price pivots and every half atr below
that pivot pt is a support level. S1 is half atr below, S2 is 1 atr and
so on. Ranges can go upto S6 or S8 (the floor on the other end)
but traders exit on S1,S2,S3 or S4. Going from S1 to S6, the rewards
increase but so does the risk.
exit on S3 which in this case is 181.2-1.5*550pips= 172.95 or just 173!
-------------x------------
Sorry Greg, for using your forum to answer questions. have
been searching high and low to start my own forum and not getting
anywhere. any help appreciated.
(cheers)
(+650p)
