josi wrote: Wed Apr 01, 2020 2:24 am
Guessing from the screenshot I take it you were trailing your buy trade. What are your trailing rules?
Where was your original SL and why?
What do you mean by "basic principles such as the Elliot wave theory, divergence and price action will eliminate most false trade setups"?
Can you explain how you applied these "principles" to this particular trade?
No offence - but ImpLaNT's thread up to now has been one of analytic precision? Shouldn't we at least try to live up to his standards?
No offence taken Josi and your question is highly appreciated, after al,l we all here to learn from each other I take it
- Simply put- In situations where price is above the 200 MA I would only look at retracement buy opportunities and visa versa in a bear market. I have tried to minimze the attached picture below just to illustrate my point...As for Elliot waves; a combination of the ZZ and Mladen's great Hilo indicator will help to almost accurately define these waves ( you could add the 123 pattern indi as well to trade breakouts).. so my entry in an uptrend as was with the current trend I looked at possible retracement entries...my sl was initially set below my 21 ema and custom psar (set my own paramenters)..Prior to buying we had a series of higher lows whilst price was firmly set above the 200 MA (main trend line)..my entry was set after the immediate higher low formed ( also take note of my background feature and candlestick colours)..Lastly looking at demand and supply zones, price was above support; we have more support than there is resistance for price to move upwards instead of downwards (secondary confirmation was the custom rsi level been above 50 and a rise in obv -very important above ma). In additon, you can pick up divergence in market price structure using the OBV but its best done manually since most of the divergence indies out there will more frequently show false divergences in my opinion- a true divergence whether hidden or standard will have a full 123 (abc) elliot wave move based on my charting observations...to trail my profit i manually do so after a 20 pip rise in favour os my trade...Also note that once my psar changes position i would then take that as an exit opportunity; however, with the current market long term trades grow scarce...Hope that this was helpful
