trading two legs

[EsKiller]

its possible a reversal is coming, but in my trading, I wouldn't really care. Counting from the far right, bars 11-13 back are your support structure. Bar 5 is a lower volume down bar into the support structure. I'm looking at entering somewhere around this area without giving too much away. The entire pullback structure is one where price is finding an equilibrium. The 5 or 6 bars that chop and stay rangebound is an example of this. Anything above or below usually mean reversion traders come in. So profit target wise, you're looking at exiting at the highs instead of looking to ride it out.

 

[maxinger]

2 legs?

it means trading spreads which involve buying one instrument and selling another instrument simultaneously (or almost simultaneously).

two leg strategy could be straddle strategy

three leg strategy could be collar strategy

four leg strategy could be iron condor.

 

[padutrader]

Anything above or below usually mean reversion traders come in. So profit target wise, you're looking at exiting at the highs instead of looking to ride it out.

yes i like that point a nice way of thinking

 

[padutrader]

This may help with your trading hero worship

just appreciating someone's idea.....yes i will read that thread.useful way to spend a weekend

 

[_eug_]

If you are looking for 1,2,3 try zooming out as much as the plaform allows so that the individual candles mean nothing. Then look for the pattern as it developes over hours or days...not from one 5 minute bar to the next...

 

[padutrader]

If you are looking for 1,2,3 try zooming out as much as the plaform allows so that the individual candles mean nothing. Then look for the pattern as it developes over hours or days...not from one 5 minute bar to the next...

that will be for a much longer time frame....need more capital for that

 

[padutrader]

oops posted in wrong thread

 

[cafeole]

Al would say you have too tight a stop. Stop should have been at the top of the high or the top of the first major pullback.

 

[padutrader]

Al would say you have too tight a stop. Stop should have been at the top of the high or the top of the first major pullback.

stop i wonder what is the meaning of that word...sounds familiar

 

[volpri]

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 View attachment 187924

NO, odds favor a continued move up. Maybe another pb coming but not a reversal.