This is the day that doing the FBT is like....THANK YOU.
Point "A" is the first 3 minute bar or setup bar.
Point "B" the low was taken out WITHOUT taking out the high of the setup bar.
Point "C" on the open would be the trigger for a short.
Now comes the next problem, the management of the trade. There are a hundred different ways to manage your stops. What a trader needs to determine is what they can live with.
Do you keep the stop just above the setup bar while the price jumps around?
Do you take half off at a pre-determined target?
If you take half off at a certain target what do you do with the stop, do you move it to breakeven or allow your profits that you made on the first half give the trade more room.
These questions are something that each trader has to answer for themselves as we are all different on our tolerance level. You can post your ideas....if you like
Posts
5 comments:
Dear Dennis,
Thank you very much for clarifying the rule for me. I was taking positions on the second bar when I should be waiting for the open of the 3rd bar. I really appreciate your explanation.
Thanks Mucho,
Charles Miller
The way I read the FBT rules, the first bar is the setup bar and the second bar is the trigger bar. The trigger bar gives the direction of the trade depending on whether the high or the low of the First Bar is taken out by the trigger bar. You enter into the market at the open of the third bar in that direction. Correct?
Are there plans to reestablish the chat room? If so, how is that coming? Thanks
I finally twigged have to allow the second bar to print before entering so as to be sure not an outside bar. How about this for an exit. Move from 3 minute to 1 minute chart. if new low and close move stop to top of bar +1 Also display 6 period cci. At close of bar if cci under the 100 lines move stop to top of this bar +1
Simon
Dennis
Thank you for sharing this technique with us
Simon
Post a Comment