Floyd
Why did you enter a short at the first arrow on your chart when price was above the 240 WMA? Thank you.
Look at the slope of the 240 WMA is red. This is the key.
triplepack
On your previous post arrows 7 + 8 appear to be going against price action as described. 7 appears to be triggering long of a lower low 8 also appears to be triggering long of a lower low . Price action for this swing shows a downtrend but you are taking longs. Is it that the 240wma in an uptrend is overidng the price action and you are therefore taking longs ?
Thank you for your comments
You are right. See the new chart . A WMA will never override price action in a 100% price analysis trade.
Amitman
The second trade (the loser) could have been easily avoided by entering only one tick below the low of the bar that changd the slope, this is how I trade to avoid whipsaws. But I do notice that this entry method might have turned the 5th trade into a loser. What do you find better? entering right on the close or waitnig for a new low?
You can use as trigger a break of the last low/high but first you will require a sharper mechanism for establishing high/lows which can be very difficult and it will require a lot of screen time. Second, in my opinion it will only work efficiently in trendy markets. Third, you will need an extra indicator or extra effort in the analysis to âestablishâ which wave will be big enough to enter a wave that late. Fourth, look at chart as whole, does it make any sense to correct this failure on the trigger (cost of doing business) when you have 7 winners with a 157 ticks max profit range with a very low drawdown for getting rid of 1 loser of only 12 ticks?
Talking about the 5th trade, where exactly is your entry point? I guess it's not in the long red bar since you have to wait for it to close in order to know a new wave had started, so if you entered only after the long bar closed how do you know this trade was a winner? Because from what I see the trade had merley made a few tick (2-3) before going back up.
Yes the entry is the red long bar (especially if you have pivots, was a perfect retracement to the pivot after it was broken a few bars ago). A winner for example What about a 10 contracts scalp 5 ticks first target half position and stop move to B/E if target is hit ⦠This chart was 6 tick profit range ⦠if you wait for the close to enter the trade you could have been filled at least 1 tick above the close of that long bar so â¦
As someone else mentioned before the 8th and the 9th trade are not valid longs as price makes LL, LH, moreover, I would have entered a short trade right after you made trade 8, which would have been a winner.
I corrected the mistake. Yes true was a potential short but not a 100% perfect setup âcause the 240 WMA slope was green.
I will address your last question in the next set of developing a PBP postsâ¦
IronFist
I see some differences now. In your chart you are taking trades in the direction of the 240WMA regardless of if price is above or below it at the time.
At your 7th arrow, why did you go long here? It was preceded by a lower low. I thought a higher low was required to go long. Or does this rule change because of crossing the 240WMA or the 240WMA changing color?
See my last chart I corrected this mistake and yes slope of the long WMA is a better visual aid than price above / below but there are only divergences when you have a change of macro direction.
Looking at your chart I see a few entries with more than 6 ticks drawdown to the stoploss,
NO. Only 1 winner trade has a drawdown of -10 ticks. The average drawdown for winners was -3.71 ticks
However I'm more concerned right now with why my chart, which I've set with the same settings as you, is looking slightly different.
You have two red bars here (thus triggering an entry when they change back to green) and I don't.
I have a green bar in surrounded by red bars and you don't
I have a random red bar in here surrounded by greens and you don't.
Your green bars don't start until the 240WMA is crossed and mine start before.
The problem is your data feed. My charts are with my live data feed.
jjrvat
Why did you enter a short at the first arrow on your chart when price was above the 240 WMA? Thank you.
Look at the slope of the 240 WMA is red. This is the key.
triplepack
On your previous post arrows 7 + 8 appear to be going against price action as described. 7 appears to be triggering long of a lower low 8 also appears to be triggering long of a lower low . Price action for this swing shows a downtrend but you are taking longs. Is it that the 240wma in an uptrend is overidng the price action and you are therefore taking longs ?
Thank you for your comments
You are right. See the new chart . A WMA will never override price action in a 100% price analysis trade.
Amitman
The second trade (the loser) could have been easily avoided by entering only one tick below the low of the bar that changd the slope, this is how I trade to avoid whipsaws. But I do notice that this entry method might have turned the 5th trade into a loser. What do you find better? entering right on the close or waitnig for a new low?
You can use as trigger a break of the last low/high but first you will require a sharper mechanism for establishing high/lows which can be very difficult and it will require a lot of screen time. Second, in my opinion it will only work efficiently in trendy markets. Third, you will need an extra indicator or extra effort in the analysis to âestablishâ which wave will be big enough to enter a wave that late. Fourth, look at chart as whole, does it make any sense to correct this failure on the trigger (cost of doing business) when you have 7 winners with a 157 ticks max profit range with a very low drawdown for getting rid of 1 loser of only 12 ticks?
Talking about the 5th trade, where exactly is your entry point? I guess it's not in the long red bar since you have to wait for it to close in order to know a new wave had started, so if you entered only after the long bar closed how do you know this trade was a winner? Because from what I see the trade had merley made a few tick (2-3) before going back up.
Yes the entry is the red long bar (especially if you have pivots, was a perfect retracement to the pivot after it was broken a few bars ago). A winner for example What about a 10 contracts scalp 5 ticks first target half position and stop move to B/E if target is hit ⦠This chart was 6 tick profit range ⦠if you wait for the close to enter the trade you could have been filled at least 1 tick above the close of that long bar so â¦
As someone else mentioned before the 8th and the 9th trade are not valid longs as price makes LL, LH, moreover, I would have entered a short trade right after you made trade 8, which would have been a winner.
I corrected the mistake. Yes true was a potential short but not a 100% perfect setup âcause the 240 WMA slope was green.
I will address your last question in the next set of developing a PBP postsâ¦
IronFist
I see some differences now. In your chart you are taking trades in the direction of the 240WMA regardless of if price is above or below it at the time.
At your 7th arrow, why did you go long here? It was preceded by a lower low. I thought a higher low was required to go long. Or does this rule change because of crossing the 240WMA or the 240WMA changing color?
See my last chart I corrected this mistake and yes slope of the long WMA is a better visual aid than price above / below but there are only divergences when you have a change of macro direction.
Looking at your chart I see a few entries with more than 6 ticks drawdown to the stoploss,
NO. Only 1 winner trade has a drawdown of -10 ticks. The average drawdown for winners was -3.71 ticks
However I'm more concerned right now with why my chart, which I've set with the same settings as you, is looking slightly different.
You have two red bars here (thus triggering an entry when they change back to green) and I don't.
I have a green bar in surrounded by red bars and you don't
I have a random red bar in here surrounded by greens and you don't.
Your green bars don't start until the 240WMA is crossed and mine start before.
The problem is your data feed. My charts are with my live data feed.
jjrvat
