AHG - Profitable Strategy for Struggling Traders

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Here is a beautiful AHG setup that I did not take properly. But i did go ahead and annotate the way it SHOULD have been traded!

First, watch the anchor. An uptrend overall but currently in a short term downtrend. When the key pivot of 1786 was approaching take strong note and start looking for entries.

02272008183042xt2.png


Now start looking your entry chart. You see LLs/LHs approaching the pivot. Stay out! Granted fading the pivot with a tight stop can bring great reward but that's not the AHG trade. That's more advanced. As you see when the 1792 pivot is taken I waited for a strong bar to paint and then went long. Initial stop a little below 1792.50 where that pivot was taken out. The AHG trade here is to continue adding cars as the pullbacks occur and keep your initial stop in place until your initial target gets hit. (in this case I'm targetting 1806.25 as it was a modestly important pivot) As the trade works out you should have 3 opportunities to add up and as you approach the HOD and other key pivots the risk is too great for the little potential reward and you should start either scaling out your profits or just take them.

02272008182831wn8.png


Here is the breakdown of the potential profits per car. This is assuming you had a sell order at the previous pivot of 1807.75 which consequently was the high after this rally. You figuring out that it's not all a coincidence yet?

1st trade: +14
1st Add: +13
2nd Add: +12
3rd Add: +9

For a total of +48, if you were doing just 1 car lots that would be a monstrous $960 on only $45 of risk. Damn nice trade...

I'm getting this, I really am...
 
I posted these charts before but here is an example of the entry I look for on the anchor chart.

When you get a low then a bar with a higher low draw tl then the next time a bar hits that tl have a limit order sitting on the line.
vice verse with shorts
 

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