Hi guys,
many of posters here talked about redrawing trendlines as you get new candles but I'm more inclined to be on more conservative approach which is not redrawing as frequently.
I think somewhere in Moutekitrader's document he said that you should pick the most prominent highest high or lowest low though he did say to draw them from right to left.
Unless it's truely obvious, I don't think you would know if either the highest high of the lowest low you are using to redraw is a prominent one in a little more bigger picture.
For me personally, I would choose to see a little more bigger picture than using only recent candles which can be only 10 candles at times.
What I mean is that if you use, say, only the most recent 10 candles to determine resistance and support, you would most likely be basing your trade decision on daily resistance and support lines.
On the other hand, if you use more than 30 or more candles to determine where your trendlines go, you would be basing your trades on weekly resistance and support levels.
As peter said earlier today, this method gives you longer-term trades where each trade can take more than a day or two. It makes more sense to me to base it on a bigger picture that is to look for good and prominent points of support from the last 7 to 10 days or so with a little more emphasis on newer candles.
After all this writing, Moutekitrader might say something different than what I just wrote...in that case I'd have to really reconsider it but for the time being that's my humble opinion.
Oh, btw please make sure to keep us posted about how your trades go especially those who redraw trendlines frequently.
My guess is that you get a lot more signals to enter for fewer pips with success rate unknown at this point. It may prove to be a very good inta-day trading method so I will keep my ears open.
Thanks.
PS Peter, very nice posts as usual. I'm sure many people will benefit from your wisdoms. Thumbs up!
many of posters here talked about redrawing trendlines as you get new candles but I'm more inclined to be on more conservative approach which is not redrawing as frequently.
I think somewhere in Moutekitrader's document he said that you should pick the most prominent highest high or lowest low though he did say to draw them from right to left.
Unless it's truely obvious, I don't think you would know if either the highest high of the lowest low you are using to redraw is a prominent one in a little more bigger picture.
For me personally, I would choose to see a little more bigger picture than using only recent candles which can be only 10 candles at times.
What I mean is that if you use, say, only the most recent 10 candles to determine resistance and support, you would most likely be basing your trade decision on daily resistance and support lines.
On the other hand, if you use more than 30 or more candles to determine where your trendlines go, you would be basing your trades on weekly resistance and support levels.
As peter said earlier today, this method gives you longer-term trades where each trade can take more than a day or two. It makes more sense to me to base it on a bigger picture that is to look for good and prominent points of support from the last 7 to 10 days or so with a little more emphasis on newer candles.
After all this writing, Moutekitrader might say something different than what I just wrote...in that case I'd have to really reconsider it but for the time being that's my humble opinion.
Oh, btw please make sure to keep us posted about how your trades go especially those who redraw trendlines frequently.
My guess is that you get a lot more signals to enter for fewer pips with success rate unknown at this point. It may prove to be a very good inta-day trading method so I will keep my ears open.
Thanks.
PS Peter, very nice posts as usual. I'm sure many people will benefit from your wisdoms. Thumbs up!
