DislikedThank you endroute, it's very reassuring when you hear an experienced trader confirm your thoughts.....Ignored
Also, if the spread really is 16 on this pair, you SL with THIS strategy will often be less than the spread by quite a bit, + spread. Most of the time the SL in this strategy is a little more than the spread +spread. Hope that's not too confusing for those trying to follow.
Now for some good stuff.
DislikedThe gap is also big and pa has only just burst through them. We have a poor angle too. However, there is a good bounce worth a few pips on the first test - I would no way take this though....Ignored
DislikedIt then re-tests and the second test has a red candle with a small wick that closes on the 50 and 10 ma's. This looks like a decent set-up to me, despite the factors against us and it not entirely following the rules. Price races away after that second touch. Should we be looking for these sorts of set-ups eclayf because they scream at me!!!Ignored
Keep in mind, this strategy is ALL about discretion and the rules are how you "filter" the trades. For newbies, they should be hard and fast immutable objects and you should look for ONLY PERFECT entries, but as you gain more and more experience, you WILL start to see things that TO YOU literally jump off the screen, slap you in the face and shout "TRADE ME, TRADE ME, TRADE ME NOW!" You're starting to "get there" when that begins happening. Then IF one of those fails, you can immediately go back to the rules and "see" where you went wrong, self correct and keep moving excitedly toward great success, EVEN IN THE FACE OF A LOSS, or even several losses. All because of the powerful simplicity of this strategy.
The hardest part is it's simplicity, the best part is it's simplicity. Take advantage of it and have FUN!
DislikedYou get instant profit here, if you take the touch. No waiting around to see if pa is going to go your way. It shoots off your way straight from the get go . No need to have more than few pips stop here, it's got everything going for it. Even if we just wait out two candles, you're going to net 4% on 2% risk. A thought I had on that sort of rapid bounce would be to wait until a candle closes back through the 10 ema against the trend direction. If you took that approach, you'd still be in this trade at 80 pips as I type! That's a staggering 1:8...Ignored
Overall good analysis. Thank you for the input, great trade setup.
One last thing, not sure what you're using as for image capture, posting and so on, but even though Imgageshack is OK, using the smaller images makes that unnecessary.
Good work Trotty.
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