Hello Dewey,
I will answer your questions the best I can but understand it is with a risk of being rude which I don't want to do. So FW please excuse for it is not my intent.
Quoted by Dewey:
[quote]Can you please explain your method here?
[/quote]
I use Support and Resistance.
[quote]I think the idea of FW’s method was to use the ALF method to take the trade. Do you see a problem with it? There are two threads devoted to using ALF and TVI without breakout. Is there something you think is better?[/quote]
The problem is with the initial trade and the use of the box for direction. The box is not a good means of finding the right trading direction. Would you use a divining wand or a compass to get you out of the woods? The answer to that question is quite obvious but the question of why is the box being used as a direction finder seems to elude many? Time and hope is the only answer I've seen so far with the hope of a major high or low found prior to the London Open. Why do it if you're relying on hope. Time + Hope = GAMBLING.
I use 16 TP up at 10 pip intervals and 16 TP down and move buy and sell stops as the PA completes it's run to exhaustion. I take profit at points of resistance or support. If the initial trade is a wrong direction trade and the price reverses then I analyze the extent of the mistake and either close the trade or add positions. Closing the trade is done quickly as the factors are a quick glance away. The Stops are very rarely ever hit.
In summation I don't take profit based on the Fibs or the 10 pip interval lines but only at the SRs. The stops are not set at a defined level except at the initial buy or sell point. As the trade progresses the move of the Stop to the break-even point is done as quickly as possible. Risk is the #1 enemy and must be dealt with as soon as possible.
Once that point is reached I let the trade run to the SRs and then take profit #1. If the SR is breached I wait for the retrace and a opposite side hit before taking profit #1. The degree of the SR is a consideration on #2 and #3 as well as the time of day. In any event the Stops are moved up if I'm waiting. Sometimes they get hit but the fact that my risks are covered and profit is captured no regrets will enter my mind even if the price turns again. I will look now for a reentry or trade another pair.
I see nothing wrong with FW's method but I must admit I haven't traded it for comparison. I do not trade off indicator values and I'm not familiar with this method enough to comment on it except it doesn't fit my trading style. Some of the things are definite improvements but that wasn't too difficult as some of the things being done on the old thread were a shake your head thingie.
I hope this answers your questions,
Johnny
I will answer your questions the best I can but understand it is with a risk of being rude which I don't want to do. So FW please excuse for it is not my intent.
Quoted by Dewey:
[quote]Can you please explain your method here?
[/quote]
I use Support and Resistance.
[quote]I think the idea of FW’s method was to use the ALF method to take the trade. Do you see a problem with it? There are two threads devoted to using ALF and TVI without breakout. Is there something you think is better?[/quote]
The problem is with the initial trade and the use of the box for direction. The box is not a good means of finding the right trading direction. Would you use a divining wand or a compass to get you out of the woods? The answer to that question is quite obvious but the question of why is the box being used as a direction finder seems to elude many? Time and hope is the only answer I've seen so far with the hope of a major high or low found prior to the London Open. Why do it if you're relying on hope. Time + Hope = GAMBLING.
I see using them as targets or SL’s. How do you use them here?
I use 16 TP up at 10 pip intervals and 16 TP down and move buy and sell stops as the PA completes it's run to exhaustion. I take profit at points of resistance or support. If the initial trade is a wrong direction trade and the price reverses then I analyze the extent of the mistake and either close the trade or add positions. Closing the trade is done quickly as the factors are a quick glance away. The Stops are very rarely ever hit.
In summation I don't take profit based on the Fibs or the 10 pip interval lines but only at the SRs. The stops are not set at a defined level except at the initial buy or sell point. As the trade progresses the move of the Stop to the break-even point is done as quickly as possible. Risk is the #1 enemy and must be dealt with as soon as possible.
Once that point is reached I let the trade run to the SRs and then take profit #1. If the SR is breached I wait for the retrace and a opposite side hit before taking profit #1. The degree of the SR is a consideration on #2 and #3 as well as the time of day. In any event the Stops are moved up if I'm waiting. Sometimes they get hit but the fact that my risks are covered and profit is captured no regrets will enter my mind even if the price turns again. I will look now for a reentry or trade another pair.
I prefer this over the strategy in the LBO thread.
I hope this answers your questions,
Johnny
