EM1, you know when the conditions are wrong, not the price, per se.
People with static stops are putting the cart before the horse. Perhaps they do not understand the difference.
On an entry, the sequence should be
1) Find a setup*
2) Verify the setup,
3) Find an Entry point that is reasonable.
4) THEN SET AN ORDER
On an Exit, same thing, but one has the choice to treat it as two orders or just one.
One order:
1) find an exit setup*,
2) verify the setup,
3) find an exit point, ......
4) THEN SET AN ORDER
or
Two orders:
Similar, but you have a stop setup and target setups. ALSO the Stop setup and Target setups can interact.
By this reasoning, for a two order exit, there is about 3x as much logic going into the exit than the entry.
Again, by this reasoning, without an "EXIT" setup, you are not even in the game. If you have at least a single Target Setup, or a single Stop Setup, then you are getting there. When you have both and the ability to interact, then you got a clue. When you have multiple Target setups and multiple Stop setups, interacting when necessary, you are in the game.
But of course, all the data, checks, cross checks, for a setup is a lot to do quickly. If you use multiple time frames- charts etc. it is probably too much, just with the entry. Then go 3x with Exits and you eyes and mind are very busy. Hard to sustain all day, everyday. But computers can do a lot of the heavy lifting! They are good at it, fast, precise and never tire.
Bottom line:
Static, point based exits, before the data comes in <> an Exit setup(s).
Hope this helps.
PS: EM1, Get me that pastrami sandwich please, extra pickle.
I work with a trader locally and he buys lunch, usually this:
http://redmillburgers.com/aboutus/
Check out the last pic of BACON!!!!
*PPS: For clarity: SETUP = the conditions under which you would place an order. Could be any combination of price, indicators etc.
