I go by setups that show up on the 5min. The charts are 1min charts because Ninja puts the trade lines only in that time frame. Actually my back-testing showed that my system works best in trending markets but there are some days like today that the setups are scarce. I never thought of the idea that some aspect of trading can be too easy and thus I will not want to participate (lack of reward) but maybe you are right. Gabe
From what I have see in CL so far it seems to frequently chop in zones for a while.. (NoDoji please comment) IF so looks like waiting for some structure to build, drawing lines, and when the convincing break happens THEN trade.. These lines HAVE to be of a minimum length though.. What I am saying is a bar or 2 bar signal should only be taken IF there is broken structure OR a reversal off SOMETHING drawn on the chart.. Maybe I can go back to daytrading.. make a fortune!... NOT!
That is amazing. What about the Green outside bar around 10:30 on the 5m chart? Could be NoDoji's 2nd Mouse area.
Vol=volatility. Anyone looking at your trades can see your stops are too tight. You seem to be trading some sort of pulback entry, but that often puts you into a congestion zone, just like rashid observed. If you are entering in congestion, you have to have stops outside the congestion zone or you will get knocked out way too often. JMO obviously, but I can read a chart.
Yes, exactly. He is doing everything backwards. The typical newbie mistake is to try to trade the countertrend. It seems safer, but of course it is thin ice. Gabe does not seem to be doing that, but it seems to me his entries and his stop placement are not on the same page.
I mainly trade off the 5min chart and my initial stop is 11 cents as that is what I arrived at looking at historical MAE. These stops are adjusted to the extreme of the entry bar. Yesterday may have been an exception. I am investigating and I have made some observations but I want to re-check them. Gabe
So that worked out great for you. Are you still in the trade? In general, I think stops are not a good way to exit. They are the last resort, insurance against a breakdown in discipline or something unexpected. I would prefer to dump a trade when the entry conditions have been disproved or violated. For example, if entry is crossing a MA, then a recross invalidates the trade.