AHG - Profitable Strategy for Struggling Traders

[macattack]

Quote from Cxinvest:


As far as your question about shorting on a strong down bar you got me confused. Are you asking if a short position should be taken on the first strong down bar that occurs once the double bottom is confirmed and intact above its middle swing??

~Cx

Yes. Double Bottom Confirmed. Middle Swing has been surpassed. A few bars later you get a strong down bar.

Maybe it's a judgement call at this point?

 

[Cxinvest]

Quote from Anekdoten:

Cx,

That was some good reading you did today.

Way to go trading the charts.

Anek

Thanks. What can I say, the answers lie in the charts. Price doesn't lie.

~Cx

 

[Cxinvest]

Quote from macattack:

Yes. Double Bottom Confirmed. Middle Swing has been surpassed. A few bars later you get a strong down bar.

Maybe it's a judgement call at this point?

Ok, if the pattern is confirmed and only moves a short ways and price begins to fail to the upside and head south, you have the option to sit and see what happens or potentially play what Anek has developed as the "DB / DT failure play". If I understood it correctly until this point, you look to short on the first pop up following the initial failure. Let's see if we can get his feedback too. Here is an example from the other day of an obvious failure. Hope it helps!

~Cx

 

[Anekdoten]

Quote from Cxinvest:

Ok, if the pattern is confirmed and only moves a short ways and price begins to fail to the upside and head south, you have the option to sit and see what happens or potentially play what Anek has developed as the "DB / DT failure play". If I understood it correctly until this point, you look to short on the first pop up following the initial failure. Let's see if we can get his feedback too. Here is an example from the other day of an obvious failure. Hope it helps!

~Cx

Cx,

Was that one at the LOD ?

Anek

 

[Cxinvest]

Quote from Anekdoten:

Cx,

Was that one at the LOD ?

Anek

That DB in the yellow circle was LOD at that time, yes.

~Cx

 

[Anekdoten]

Cx,

Then that means the downtrend is not ready to end. Examining the closing bars breaking the support area is imperative. On a conservative level you want a pop up and followed by a failure as your experience grows you will know when to pull the trigger regardless of a pop up or not.

Anek

 

[Cxinvest]

Quote from Anekdoten:

Cx,

Then that means the downtrend is not ready to end. Examining the closing bars breaking the support area is imperative. On a conservative level you want a pop up and followed by a failure as your experience grows you will know when to pull the trigger regardless of a pop up or not.

Anek

10-4.

~Cx

 

[Anekdoten]

Cx,

At that point stop market orders should start getting hit like falling dominoes so as long as previous bar highs are not taken the trend is solid. Definitely no bright green during that time.

Anek

 

[Cxinvest]

Quote from Anekdoten:

Cx,

At that point stop market orders should start getting hit like falling dominoes so as long as previous bar highs are not taken the trend is solid. Definitely no bright green during that time.

Anek

Yeah no strong bars for several consecutive candles in that down move. Plenty of weak bars though. Short selling+stop running produce some nice moves .

~Cx

 

[monti1a]

Quote from Anekdoten:

You cannot.

This is a winning strategy yours is a losing one.

Sorry to be blunt but averaging down is only for losers and losers alone.

The quicker you convince yourself of this the better.

Stay away from it at all cost it's the fucking plague.

Hope that was crystal clear.

Anek

Thanks for setting him straight A.

One would have to be on Crack to want to average down...