Daniel is going to learn Wwatson1 to trade
- Thread starter wwatson1
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No, not really or there must be something off. The win rate is +- 65 to 70% untill the first scale out. This is also something we need to backtest for the instrument you are going to trade. Backtest will show us where to put the first scale out. And where to put the hard stop, so you do not get stop out before the trend is really over... Getting out from seeing what is happening, will come with 'screen' time...
A bit more about getting stopped out and prices moves as you intended. If have a clear example from today of how you would not initiate a trade in the first place. Step for step:
You are in a downtrend. You are looking at pullbacks to enter in the direction of the trend. Suddenly you see this happening:
Price goes up on a vicous move of cummalitive delta (see arrow 1 and 2). Price even goes back to the previous high (line 3,4), but cummalitive delta doesn't (line 5,6). This is a tell that trend is changing. I would not take the trade anymore, because of this. Later on you see also that price is going up and cummulative delta is also going up. I would even enter a long on the bar after the second arrow down below the chart, because price is agreeing with delta. I hope to find more examples to show you.
You are in a downtrend. You are looking at pullbacks to enter in the direction of the trend. Suddenly you see this happening:
Price goes up on a vicous move of cummalitive delta (see arrow 1 and 2). Price even goes back to the previous high (line 3,4), but cummalitive delta doesn't (line 5,6). This is a tell that trend is changing. I would not take the trade anymore, because of this. Later on you see also that price is going up and cummulative delta is also going up. I would even enter a long on the bar after the second arrow down below the chart, because price is agreeing with delta. I hope to find more examples to show you.
Daniel, is there any particluar reason you use the 36EMA? More typical are 14, 20 and 50 so I'm curious about this.
Great! If you can see that, you are going to be a very good trader.
Can you share what you think the problem is why you have difficulty trading profitable?
I think every number could work as long that it paints the right picture for you. But I also think you need to combine the ema's with the whole picture you see. I use the ema to not only see the trend more clearly, but also as a support or resistance line. If you see in the pictures, there are arrows, when price moves trough de ma33 (or 36). Would it matter that the ema was set on let's say 28 or 48? Not really, because price still moves trough it. It could be that it is even better, because in the last picture you see price not going all the way up to the ema33. If you see it from a mechanical point of view, you would not take the pullbacks because of this. But if I sit in front of my screen and see the pullbacks happening and cummalitive delta agrees with going short, I would take the trade no matter if it did go to the ema's or not. Hope this make sense
Did a bit if searching and came across this. Are you familiar with the material? Not necessary to use his charting, most easily recreated on Sierra.
http://woodiescciclub.com/pdf/
http://woodiescciclub.com/pdf/
I believe so. Only glanced at it, he has about 8 setups I think. Worth a look.