Entering on down candles

Is entering on a down candle better from a stop loss positioning perspecitve.

  • Yes

    Votes: 5 38.5%

  • No

    Votes: 3 23.1%

  • Doesn't matter

    Votes: 5 38.5%
  • Total voters
    13
  • Poll closed .
Handle123 said:
I PERFER to do back testing then be asking the masses who are going to give you answers that actually are not going to help much at all. I get many ideas from the forum, but unless I back tested ideas, I will NEVER trade without solid proof that after 10,000 samples of whether it will work and from the MAE and MFE will help on stops then test the time.

Your idea of "right area of the chart" what does that even mean? first off do you understand what a swing is as all have different definitions of such. And some have a counter trend trade that may start before the trend does as right shoulder of H&S or "Secondary low" which is a bar that fails to make new lows and often they are down candles and next bar might go up and breaking the high of previous bar's high and close above that high. Do you take 10 day average of each trading hour swings and duration of time to complete swing? Or are you waiting for new trend to start and what definition using for trend, something trend does no start until five wave of the swing which means trend might be near over. And what about breaking 2nd pivot back and you get a down candle, if using sma, trend might be up and price structure showing trend down as confirmation is close below 2nd pivot and recent pivot high was end of the trend, but ema, wma, sma is too slow, but what now since it looks like "entry is in the right area of the chart."

As a scalper I have a over dozen signals which means they pile up and grouped together in tight cluster, more signals the better, some are down bars, some are 5th down bar, some going up, some are going to be breakouts, some are distance trades, there are counter trend trades, support/resistance, H&S, some based on angles, 3 are based on volume, too much/too little, one is based on speed, couple based on spoofing, trendline traps, breaking of HOD/LOD, most I risk same amount regardless of where I enter and reason is from back testing. Some signals happen only when other signals are present.



Because the entry is least of his concerns, market structure, time of the day, risk and time management, break down of price, break down of waves, over extended or under extended swing, Day session S&P Index open, Swing ave.. Traders I have helped usually spend 2 years learning concepts of price structure, so asking if risk going to be smaller cause it is a down bar, IMHO is absurd and showing him what a picture of down candle? I would be fool to do so as most would not understand wave and swing structure. Are you aware that swings making new contract highs are smaller in first hour than swings ten days from the highs? Are you a where that weeks that have four or less trading days are much tougher to trade than full weeks? And more often the first hour is more volatile and less direction than five day week.

When one has all the answers of when not to trade, entries are so simple.

Tuesday after holiday can be a hummer all.
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You sound like you have an unnecessarily complex strategy.

I just buy stuff going up with no near resistance and let price prove me wrong.

It's worked for me for quite some time.
 
Newc2 said:
You sound like you have an unnecessarily complex strategy.

I just buy stuff going up with no near resistance and let price prove me wrong.

It's worked for me for quite some time.
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Then why start this post if it has worked for you quite some time?

Actually, as years pass, what you see now as complex becomes ingrained in your memory and it becomes like breathing. I am a Scalper first and just recently have made a system for longer profits so more of day trading. I have concentrated last seven years on losing very very small amount and this allows me to average down on each trade, increase size and lease seats. I love the challenge of getting losing percentages lower, trading has evolved for me over 32 years of intraday trading, where at one point you trying to just become profitable, to building up 401k to having enough for remainder of life to now being fun again and made it more of self challenges. I love automation as where as before I could only trade few markets at one time to possible sleeping in each day if I can to it watching 40 markets 23 hours a day.

Complex? not at all.
 
algofy said:
No difference in candle charts vs bar charts for me.
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True they both contain the same info. Candles just visually give a nano second quicker view or two bullish/bearish but not necessary for trading. That is they indicate quicker visually if the bar is a bear trend bar or a bull trend bar or a range bars. Bar charts do the same. Just might take a split second longer to see it. All bars are either trend or range.
 
volpri said:
True they both contain the same info. Candles just visually give a nano second quicker view or two bullish/bearish but not necessary for trading. That is they indicate quicker visually if the bar is a bear trend bar or a bull trend bar or a range bars. Bar charts do the same. Just might take a split second longer to see it. All bars are either trend or range.
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%%
That maybe an advantage, Vol, for bar charts,+ maybe why IBD uses them.LOL I like candle charts because they're easier to see + are simply same info. But leave it the WSJ to run a huge article [ a year or 2,ago, not a sell signal, LOL] about all the reasons some people do not like color red.
 
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