Quote from bighog:
Donna, your detailed style was the one and only factor that allowed you to catch that runup where you did.
Lately, I've been testing the waters with some anticipatory entries. For example, earlier when I wanted to short @ 103.30, that would've been an anticipatory entry, anticipating that previous S would hold as R, since we were in a strong down trend. I prefer to do the anticipatory trades in ranges, though, because there's low volume and less volatility to shake you out, which is why I waited for some confirmation to put on that trade.
My long @ 101.54 was the result of noting a very gradual up channel on the 1-min chart. Price was working its way up to test that previous S becomes R level around .76 and I wanted to position myself long in case it tested and broke out. I was nervous placing an anticipatory limit to buy @ 101.47 (a 1-tick break of the 12:31 and 12:35pm ET 1-min bar lows), but once price closed above the 1-min 20-EMA and left the little shooting star, I decided to place the anticipatory order @ 101.54, just about at the 20 EMA itself. That worked perfectly to get me in for the test of .76 level.
On the last trade, had I not taken a break, I would've been casting my fishing line in that range, most likely long @ .75, scratch on failure to break .89, then short @ .73, looking for a break of .67, and so on.
When I got back to my desk price already had broken .67, found support @ .50, bounced to .64 and was in the .40's. I wanted to try an anticipatory long @ .35 with a double stop to reverse and short @ .32, but I hesitated because price action seemed bearish, so I simply placed a sell stop @ .32. Then when price found buyers at that level and broke back up through .50, I added the buy stop @ .65, because that is my highest probability trade setup. I think the slippage was due to adding the buy stop just prior to the actual breakout instead of having it placed sooner.
Once triggered I expected at the very least a break through .89 and a test of 102.12. There was a little moment of wiggle between those levels and I was about to move my stop to lock in 20 ticks, and suddenly it took off and sliced through 102.37 like butter and I realized the next level in play was 103.31 but that seemed crazy, and then it didn't seem crazy at all because price just went on a tear and I was glancing at my R levels that I'd noted very early in pre-market, the levels I thought price would never look at again - 103.29, 103.86, and 104.20 - and I was simply throwing in new stops and deleting the old ones that were left in the dust as the levels broke. There was no plan at all, just a feeling of "any minute now my alarm will go off and wake me". :eek:
ADD: The major factor that allows me catch these moves is that for quite a while now I've been trying to trade every valid setup that I'm present for. That's the trader's mindset. You take every setup and if they fail, it doesn't matter because you're that much closer to the Big One.
