Yesterday the first bar trade was voided because it took out both the high and low on the next bar....but the third bar setup was good for a short entry.
Now come the problem of management, where do you take action at? Well, there is several ways and it depends on you of course. I like to take half off and move to breakeven plus a tick and see what I can get. But, you could also use the stoch in the oversold area and when the high of the last bar is taken out, just adjust your stop.......there isn't a 100% winning idea...it is what you feel comfortable in doing.
Today, the first bar setup and triggered.....and got a few before being stopped out, but I also like to take the 3 bar setup the other way if that happens. Today was just a classic fill the gap and then take off to the other side. Once the 3 bar setup triggered, again when the stoch is overbought in this case, I take some off move my stop and hang on using the 3m low of the last bar as a trailer......simple ideas and fast fingers.
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8 comments:
Dennis,
What are using as your setting for that Stochastic on the 70T?
Mar
Dennis,
What are you using as your settings for the stochastic on the 70T chart?
Mar
Dennis,
What are you using as your settings for the stochastic on the 70T chart?
Mar
Sorry about the multiple posts.... not sure what happened...
Mar
Dennis,
When you say the first bar was voided do you mean that you took the trade and it was a loser? If it breaks out of the 3min (1st bar) range you just take the trade.... only in hindesite could you say well it took out the high and the low of the first bar so its a void trade, right?
I must be missing something, how do you know the first bar setup is voided if the hi and low are taken out, didnt you enter at one end or the other and get stopped out at the other end? Is that what voided means?
Stoch is always set to 10.....
Stoch is always set to 10.....
Stoch is always set to 10.....
The rule is, you have the first bar that prints which is the setup bar. If the low of the setup is taken out without taking out the high....you would go short. If the high is taken out without taking out the low....you would go long. So if the high and low is taken out on the next bar then it would void the setup.
That would require you to wait for the close of the second bar before entering the trade.....I do front run this close but you would have to research it on your own to find where you would consider taking the trade before the close of the second bar....
OR, you might find that based on other "toys" you would only consider taking a trade in one direction or the other only.....
What "Stoch" are you using... dont they require 3 imputs?
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