traderkay leads by example
- Thread starter traderkay
- Start date
Hopefully somebody was able to survive the whipsaw action after this Short signal today...
Trade management on this trade signal is more critical than on any other Intraday Japanese Candlestick pattern I currently use.
Most newbies with good discipline will get whipsawed out of their position for either a small loss or small profits...
Those that are veteran candlestick traders will most likely get small profits or big profits.
And yes...it is a profitable candlestick pattern...
requires an unusual duration of patience and discipline to profit big time in comparison to other intraday japanese candlestick patterns.
I've been using this pattern for the Eminis for many years and longer than that before the Eminis on the big contract.
Brief general stats...since the ESZ contract September 11th via the 3min chart...there has been 12 trade signals via this particular candlestick pattern...
11 out of 12 were profitable via reaching their profit target 1 area.
3 out of 12 had the initial stop loss threaten (came within a tick or two of being stopped out for a loss) before flipping over to the downside and reaching profit target 1.
I was able to trade 4 out of the 12 patterns including the one today...
all profitable.
Only 2 out of the 4 did I reach profit target 2 and I have not reached profit target 3 on any of this particular trade signal since the start of ESZ contract September 11th.
Today's Short signal I was able to cover a few contracts at profit target 1 but my remainder was picked off at 1 tick better than breakeven...
Trade Management story: I was too aggressive in moving my initial stop from the loss area into 1 tick better than breakeven...mainly because of all the earlier whipsaw action today...
soon after my trailing stop got picked off...market ranged sidways for about 35mins before the floor collapsed.
Once again...trade management is critical for this trade signal because it requires more than usual patience and discipline.
Happy Holidays.
P.S. If you review your charts since Sept 11th the start of ESZ contract...you should get more trade signals if your new to the signal...
Yet, when you define your entry criterias to get rid of the false signals...you should get about 8 to 12 signals depending upon those criterias...
Don't ask me about my criterias...get your own...no hand holding.
NihabaAshi
Trade management on this trade signal is more critical than on any other Intraday Japanese Candlestick pattern I currently use.
Most newbies with good discipline will get whipsawed out of their position for either a small loss or small profits...
Those that are veteran candlestick traders will most likely get small profits or big profits.
And yes...it is a profitable candlestick pattern...
requires an unusual duration of patience and discipline to profit big time in comparison to other intraday japanese candlestick patterns.
I've been using this pattern for the Eminis for many years and longer than that before the Eminis on the big contract.
Brief general stats...since the ESZ contract September 11th via the 3min chart...there has been 12 trade signals via this particular candlestick pattern...
11 out of 12 were profitable via reaching their profit target 1 area.
3 out of 12 had the initial stop loss threaten (came within a tick or two of being stopped out for a loss) before flipping over to the downside and reaching profit target 1.
I was able to trade 4 out of the 12 patterns including the one today...
all profitable.
Only 2 out of the 4 did I reach profit target 2 and I have not reached profit target 3 on any of this particular trade signal since the start of ESZ contract September 11th.
Today's Short signal I was able to cover a few contracts at profit target 1 but my remainder was picked off at 1 tick better than breakeven...
Trade Management story: I was too aggressive in moving my initial stop from the loss area into 1 tick better than breakeven...mainly because of all the earlier whipsaw action today...
soon after my trailing stop got picked off...market ranged sidways for about 35mins before the floor collapsed.
Once again...trade management is critical for this trade signal because it requires more than usual patience and discipline.
Happy Holidays.
P.S. If you review your charts since Sept 11th the start of ESZ contract...you should get more trade signals if your new to the signal...
Yet, when you define your entry criterias to get rid of the false signals...you should get about 8 to 12 signals depending upon those criterias...
Don't ask me about my criterias...get your own...no hand holding.
NihabaAshi
TraderKay
I enjoy your postings as I see you struggling with the same issues as that I have.
Your system here seems to me to be the fade of a fade as preached by Alan S Farley.
But I do think that if you want to make it succesful that you will have to add volume in there somewhere.
Good luck
I enjoy your postings as I see you struggling with the same issues as that I have.
Your system here seems to me to be the fade of a fade as preached by Alan S Farley.
But I do think that if you want to make it succesful that you will have to add volume in there somewhere.
Good luck
bali_survivor,
I also think volume criteria is important for this particular trade setup.
In fact...for me...its absolutely critical and more often than not will help prevent false signals for this particular intraday candlestick pattern...
especially if the trade setup appears during the dead zone or on very light volume days like during the holiday seasons.
NihabaAshi