Price broke the previous high, moved up, and retraced. We entered on a bullish candle after the retrace.
Ignored
Hi jdcompute, I like your thread and hope to learn something out of it, but I have some doubts. Sorry I'm new, spare me if some questions sound silly.
I am scratching my head on this, the trend is down, there was a previous top on 26th Dec, and 28th Dec it tested the top again and came down forming a double top. Why will you enter a long at a price heading back to the trend?
Thanks jdcompute!
The only winner is the one who survive the longest...
Hi jdcompute, I like your thread and hope to learn something out of it, but I have some doubts. Sorry I'm new, spare me if some questions sound silly.
I am scratching my head on this, the trend is down, there was a previous top on 26th Dec, and 28th Dec it tested the top again and came down forming a double top. Why will you enter a long at a price heading back to the trend?
Thanks jdcompute!
Ignored
No questions are silly, especially when you are new at this stuff. You are correct with the double top. This shows up clearly on the hourly charts. But you have to remember that you will see different things depending on what timeframe you are looking at. An uptrend on the m5 chart may only be a retrace on the H1 chart. In that case, it would be a 'with the trend' trade on M5, but a 'counter trend' trade on H1. These are the things one has to be mindful of when placing any trades. Also though, trend reversals will show up "first" on the lower timeframe charts such as the m5 chart. On the chart that I posted, you see price taking out the trendline then retracing. This trade may or may not work out but then again, there is nothing definite in this business. You just have to stack the odds in your favor and pull the trigger. Feel free to ask any questions you have and I will do my best to answer.
Thanks for your prompt reply, jdcompute. Btw some more questions with regards to your TP.
@1, Do you take profit at the small yellow rectangle? If no, what target are you looking at?
@2, The price went down to your entry point near the bottom at the green circle, will you be closing the trade earlier than your stop loss if it break thru this new support line? Or will you wait for a retracement up? If so, is it advisable to long since its the same as your entry point?
Thanks alot!
Attached Image (click to enlarge)
The only winner is the one who survive the longest...
Thanks for your prompt reply, jdcompute. Btw some more questions with regards to your TP.
@1, Do you take profit at the small yellow rectangle? If no, what target are you looking at?
@2, The price went down to your entry point near the bottom at the green circle, will you be closing the trade earlier than your stop loss if it break thru this new support line? Or will you wait for a retracement up? If so, is it advisable to long since its the same as your entry point?
Thanks alot!
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@1 - I normally would've taken profit at that area but just wanting to see if price is going to move up higher, I set my stop to breakeven on this one. Normally I shoot for 1:1, or 1:2 risk/reward.
@2 - As long as price does not trade lower than my original stop loss, I would stay in the trade. Sometimes setting your stop to breakeven too soon, will get you bumped out of a trade. Sometimes if I am bumped out at breakeven but price doesn't reach my stop loss, I may re-enter.
If you were following my posts, here is the payoff for waiting and being patient, sticking to a defined method and following through. We waited for over a day for this retracement, entered and although it's Friday afternoon, we still banked a little over 20-pips on this trade. If it were not Friday, I'd be staying in but I don't hold positions over the weekend. As I sit here typing this, this move is already over 40-pips!
This is a 5-minute chart. Here is a classic break of a previous high, pullback and then an entry. I closed this trade out at +40 although it ran for +60 up to this point and is currently still going.
+30 pip trade here. Waited for the setup to come to us, then we pulled the trigger. At one point, it took us out at breakeven but the setup was still valid so we re-entered.
