trading two legs

[padutrader]

I believe market moves in two legs.As Brooks and others have pointed out.

i have known this for along time but how to trade it? how to manage the trade and the risk?This has been my problem.

Here i will post some trades; entry will be when there are two legs and a good reversal bar or pattern so that risk may be defined; exit when there are two legs completed and a reversal bar/ pattern

 

[padutrader]

first trade long eurusd two legs down to ema and a double bottom

 

[padutrader]

first trade long eurusd two legs down to ema and a double bottom
View attachment 187862

stopped out

 

[padutrader]

sold eurusd because of two leg correction [shown in yellow box] and break out of the correction

 

[padutrader]

sold eurusd because of two leg correction [shown in yellow box] and break out of the correctionView attachment 187876

stopped out

 

[wrbtrader]

I believe market moves in two legs.As Brooks and others have pointed out.

i have known this for along time but how to trade it? how to manage the trade and the risk?This has been my problem...

You're asking how to trade it ? How to manage it ? What is the risk ?

They are good questions that must be answered before opening a trade position via a pattern (market moves in two legs) that you do not know how to trade, you do not know how to manage it and you do not know the risk.

Simply, don't trade something you do not understand and you obviously have not backtested. I only say this because if you understood the price action you're trading and you have backtesting results to support your "beliefs"...you will not be asking how to trade it, how to manage it and what are the risks when using it.

The answers to your questions is there in your backtesting...you then just need to figure out how to duplicate it in your real money trading before doing any real money trading.

Don't trade until you have your answers.

Yet, if you were just writing (talking to yourself) and you were just trying to fill up space here in your journal...ignore the above suggestions. Without the answers, its just "random trading" or as some would say...not different from just rolling the dice at a casino (gambling).

wrbtrader

 

[Craig66]

sold eurusd because of two leg correction [shown in yellow box] and break out of the correctionView attachment 187876

You are trying to assign meaning to a random walk.

 

[EsKiller]

first trade long eurusd two legs down to ema and a double bottom
View attachment 187862

after the high bar is put in, I count 8 pullback bars within the range of that up bar. Do you think that one bar up, and 8 bars down is characteristic of a healthy pullback ?

In my trading, I have a certain # of bars in an "A" down pullback in which a pullback is healthy. once it breaches that number, I'm starting to think reversal or chop.

 

[padutrader]

after the high bar is put in, I count 8 pullback bars within the range of that up bar. Do you think that one bar up, and 8 bars down is characteristic of a healthy pullback ?

In my trading, I have a certain # of bars in an "A" down pullback in which a pullback is healthy. once it breaches that number, I'm starting to think reversal or chop.

thanks for bringing up a interesting point:in 20 years i have not seen anyone describing something similar; this forum has high no of intelligent traders.
could i trouble you,it is the weekend, so you may have some time ,i hope you have the inclination,to elaborate a little on this fantastic idea of yours.all of us would benefit THANKS
can you see this chart the yellow box marking a pullback? would you think there is reversal close by

 

[_eug_]

Have you read through the "why is the obvious not so obvious" thread in the Risk Management section? This may help with your trading hero worship... and its a cracking fun thread to waste a weekend on.