AUDCAD setting up for a cross. Not my favorite pair - but the only one available right now
- #385
- Jun 15, 2011 3:45am Jun 15, 2011 3:45am
- | Commercial User | Joined Oct 2007 | 1,015 Posts
No trades to be had right now, so let’s put school into session and talk about add-on trades.
Twice in the last few weeks I’ve had a triggered trade go against me, not take me out, but appear to go against me. One time price came to within 5 pips of my stop loss and reversed. Each time price graciously offered up an opportunity to double my profits.
This is a prime example of how price means business when it comes back to you more than once.
See the attached EURJPY chart. Notice the first trigger? Look at the first red arrow, that signal was TEXT BOOK.
Sharp angle, close to the blue line, set the bait and start to fish. Triggers in the next candle (Fish on!)
But then suddenly the next candle is bearish (very bearish) – scary.
Sit on your hands folks, sometimes this method can take you for a bumpy ride.
I do NOT recommend removing your stops or moving them farther away, that is just a BASIC CARDINAL RULE.
You enter the trade with rules, you should also exit the trade with rules – Here is why:
Same trade – 8 hours later, priced dipped below the blue line, your stop level was never in any danger and price magically reversed.
Notice the next time price closed just above the blue line? This is price begging you to enter again – why? Because there is a subsequent entry per the rules of balance line trading – that’s why.
1. 1st trade triggered and then moved against you (for 8 hours), went as low as -27 pips against you. All is lost right? Not so fast fishy!
2. Price retraces for you, creates another buy signal
3. Enter buy stop #2 – which triggers in the very next candle
4. 2 trades now active
5. Once you have 20 pips locked (actually now it’s a combined total of 40 pips) let the trade progress.
6. Notice the next bearish divergent candle – move stop to low of that candle squeezing every drop out of that move.
7. Next candle takes you out. Here’s the results of your efforts:
a. Trade #1 closes at +79 pips (after going against you for 8 hours and 27 pips)
b. Trade #2 closes at +86 pips (Never goes against you)
c. Combined take: 165 pips
Questions?
Twice in the last few weeks I’ve had a triggered trade go against me, not take me out, but appear to go against me. One time price came to within 5 pips of my stop loss and reversed. Each time price graciously offered up an opportunity to double my profits.
This is a prime example of how price means business when it comes back to you more than once.
See the attached EURJPY chart. Notice the first trigger? Look at the first red arrow, that signal was TEXT BOOK.
Sharp angle, close to the blue line, set the bait and start to fish. Triggers in the next candle (Fish on!)
But then suddenly the next candle is bearish (very bearish) – scary.
Sit on your hands folks, sometimes this method can take you for a bumpy ride.
I do NOT recommend removing your stops or moving them farther away, that is just a BASIC CARDINAL RULE.
You enter the trade with rules, you should also exit the trade with rules – Here is why:
Same trade – 8 hours later, priced dipped below the blue line, your stop level was never in any danger and price magically reversed.
Notice the next time price closed just above the blue line? This is price begging you to enter again – why? Because there is a subsequent entry per the rules of balance line trading – that’s why.
1. 1st trade triggered and then moved against you (for 8 hours), went as low as -27 pips against you. All is lost right? Not so fast fishy!
2. Price retraces for you, creates another buy signal
3. Enter buy stop #2 – which triggers in the very next candle
4. 2 trades now active
5. Once you have 20 pips locked (actually now it’s a combined total of 40 pips) let the trade progress.
6. Notice the next bearish divergent candle – move stop to low of that candle squeezing every drop out of that move.
7. Next candle takes you out. Here’s the results of your efforts:
a. Trade #1 closes at +79 pips (after going against you for 8 hours and 27 pips)
b. Trade #2 closes at +86 pips (Never goes against you)
c. Combined take: 165 pips
Questions?
