This occurred today on a 5 minute chart of the SP500, can someone tell me everything thats wrong with taking a trade like this. Instead of trying to predict what will happen 5 days, 5 weeks from now how about trading an impending fast price move ? The only drawback would be staring at a screen all hours waiting to snipe maybe just one or 2 trades a day.
I see two good opportunities for entry that would have shown itself in plain sight in real time if one knew what to look for.
Not sure what "trade" you're referring to That said - we never know when a move such as you've posted will occur Impending fast price move - again.., no one knows when those are impending That said - trading momo takes a different approach/ mindset than trading standard setups (signals) One must be able to switch gears pretty quickly in order to trade momo effectively Trading is a job =================== Not sure this is what you're looking for - but what the hey RN
The trade I am referring to is where the line is drawn near the centre of there chart. Preceding is mostly chop and then suddenly red after red after red candle. When you notice that a short term directional bias has developed and taking a trade.
I don't understand what disprove this trend means ? Are you asking how to enter into a trend like this ? How to enter short ? clarification please...
A lot of folks love to trend follow on long time frames and claim it only works on long time frames. Ed Seykota & Michael Covel advise only to trend follow in long time frames. I always hear "don't trade short term you are just competing with the HFT's etc Do these short term momentum trends present a potential edge to us retail folks who dont have issues with liquidity ?
The vertical line - I take it Preceding is a range Price breaks out to the down side - with no retrace / retest AKA = RBO trade Absolutely.., with the main questions (in order of priority) Where do I place a SL (in case the move peters out.., and / or reverses) Where do I set a profit target How do I manage this trade ============== btw..., Until a trader "seasoned" - momo will cause that trade "deer in the headlights" syndrome Did me RN
They were no brainers, simple S/R set ups, but I am scalper, so I don't "Let Profit Run". I believe those with greatest wealth have been through long term trading.