DOH!
Technical stop loss placement
- Thread starter Mr.Richter
- Start date
DOH!
If you don't start with a 35-year chart, I don't think the shorter charts are of much value.
Frankly, I think the problem (posts of losing money etc) is so many people here can't afford $500/yr for charts (or any paid subscription for charts).
People read they can do it on the cheap, sharing a studio apartment, sharing a car, etc.
That's not the real world for most people.
And if you want to be a trader, you have to be better than most other traders.
If they buy charts, you are going to have to buy charts too.
Sorry.
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What has the cost of subscriptions got to do with using a 35 year time frame.
What am I going to to be able to use on a 35 year chart that I won't find on a 20 yr chart?
I rarely look out more than 5 yrs.
Well, technically speaking, you only need two dots (or two highs) to draw a line, whether it's a horizontal or a diagonal line. What's important is whether the subsequent high crossed above that horizontal line you've drawn or not. In our case, it did not cross above the horizontal line. It was a failure, hence you should not have entered long.
OK fine,
Which of these charts are you more comfortable investing your cash?
5 year
or 50 year?
It seems to me, stuck in a trading range. Now, depending on what you want to do with it, you can trade the trading range, buying at support, selling at resistance. Your stop loss being placed just below support or below resistance levels. Bias is up but, do not assume it is going to breakout to the upside as opposed to breaking down and going much, much lower. The smart decision is waiting for the breakout, no matter which direction and then, get in the trade.
The hold period determines the lookback period.
Otherwise why aren't you using a 100 year chart (or even longer)? What is magically about 50 as opposed to 5?
Breakout, on a closing basis, greater than highest weekly close in that sideways pattern 12/02/22 - is what I suggest.Hi folks,
I'm keen on getting some feedback. I've just made this trade here, and just a while ago, my stop-loss order was been hit.
View attachment 304065
It looks like a bullish consolidation, the price is above all MAs (except the 200's SMA). Until today, it seemed like the bullish pennant was completely valid and now this ...
Questions:
1. If you trade these continuation patterns, do you place your SL under the complete pattern? If I had done this, my trade would have still been active by now. The problem is that I would have to half my position size in this example because I've got to nearly double the stop-loss distance if I place the SL below the pennant.
2. I could have also drawn a rectangle in this chart. Then I would still be on the sideline but wouldn't have lost anything yet. I'm just thinking about going in every moment of doubt for the most conservative option instead of choosing the pattern, which allows me to do a trade immediately. Might this be the right direction?
It was an impulsive up move recently so probabilities favor the upside break. Protective stop out should be under low of lowest weekly down close since entry is generated that way same for stop loss. If it moves in your favor trail at 2 week low, then 1 week low, then even drop down to a 2 or 1 day daily low.
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Good Uptrend/long term/ good daily volume\
nice above 200dma/ so far so good.
Actually i like that one better than start position of CUK/ UL is above s 200day move average.
BUT with UL having an EPS of 45+ CUK EPS of 55= not very good co fundamentals, so i never added to mine +{ may not ever add to it??}
DON channel bottom is $50 area, looks like you have to tight of a stop;
i like my stop of $50 much, much more than $50.40.
UL did better than CUK in 2000-2002 bear. NUE is doing better, but sometime an 88EPS pays off + sometimes does it doesnt, but in long run it most likely will.......................................
I used to tight a stop on ING, but decided not to get back in\ ING has a low EPS but better YTD than UL.............................................
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NOTHING magical;
50 or 100 years is much better than 5, all data is best.
5 years has not many bear/bull cycle...................................