The third bar revisited.......

Anonymous said...
Dennis,
Can you talk about how to exit the 3rd bar trade when the 1st bar trade does not work like today?
Mar
February 07, 2006 11:21 AM


So the question was asked.....the first bar setup today was voided when both the high and low was taken out on the next bar. But the third bar setup did trigger. So how do I manage that one? The same way I do for the first bar.....When the stoch gets overbought (for a long) and takes out the low of the last bar (70tick) I manage the trade by taking half off and moving to Breakeven.
Then I trail the stop on the balance using the low of the last bar until I get stopped out.......just simple rules I guess.


Now what about this TAZ idea, which is $TICK at zero. I am looking for a sclap setup, and the stoch pulls up while the ticks move from at least -400 or greater back to zero.....while this happens the price holds and when the ticks get to zero I am ready to short the market or a scalp only. When the ticks moved back down I just short the market and manage it. You guessed it, when the stoch gets to oversold and the price takes out the high of the last bar...I cover the trade.


Of couse, at the same time....at point "A" and "B" the $PREM was spiking up without the $tiki and $tick......that is a nice short setup also for a scalp.....just check it out....but only if you are fast.