Quote from darren:
Nice chart Mark, what do you use for confirmation of it not breaking the downtrend? Or do you just short when it hits the top of the downtrend and set a close stop loss, how many point stop loss do you use? Thanks
Heh I whish I could tell you I have such a perfect plan, the reality is sometime I short the TL rejection, sometime the break of the previous Low (in a downtrend)
I don't really know whether it 's going to break or no, I try to place my entry in what I consider the best at that very moment, it's very difficult to explain , I look at the momentum, but probably it doesn't really metter, because the price often retraces or pauses after my entry, sometimes it goes right away.
The biggest problem except the discipline which is a difficult beast to defeat, is to let the profit run.
I don't like when the price reverse on me after say 3-4 points, so I tend to exit and reenter later on the following breakout.
When I look at the trend , I think gee man you should have waited for a confirmation of change of the trend and exit with 15-20 points instead of trading like a mad man.
It's the struggle between the swingtrader and the scalper in me... with futures the scalper is winning so far
Trading this way my R:R is often negative, I take 2-3 points with an average stop of 4 points.
I have to fix this but it's darn tough
