Where to set stop loss and Target Price
- Thread starter Humpy
- Start date
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Yes, on trend question,A28;
Excuse me for taking 28 days to move on your trade question.I am probably not the best to ask about a sideways slop -chop market, i hate them. Trailing stops tend to work well in trending markets...............................................................
I agree on this portion of the answer.
The other half occurs when there is no invalidation........ BUT, then the market gives a new signal instead.
On the trades I posted for Friday, I saw 13 invalidations (early exits to max profits) out of 22 actions for profit segments on Friday. There were 8 move reversals that interrupted incomplete trends as well. AND, there was one SIDELINE signal in the 22 segments.
All trading comes down to the decision making from a triad of three arrows. Each of the 8 combinations is 100 percent certain (0 risk)..
I use only one measure to determine invalidation: the three tick rule. I take an early exit whenever a trend is two ticks off its extreme. I hit trade (market) and give up a third tick as I exit.
jack hershey,
I've read a lot of your material, and I was wondering if you could answer a few questions since you have decided to post again.
1. You refer to 22 actions on Friday, and your logs show 22 End Effects. Is it correct to infer that you only take one single action per each End Effect Bar? Even if an invalidation or sideline signal occurs and price goes back into the extreme there are no re-entries?
2. Does the arrow in the triad for 30m refer to the position of price relative to the Doji of the 30m bar, OR does it refer to the sentiment of the tape that can be made using the last two (or more if there is lateral) adjacent bars of the 30m chart?
Thank you,
Magic
Using Stop loss and target price is something different it may provide benefit some times but its important to know when to be used and how to be used...
Jack Hershey,
I waited for the first End Effect of the morning and I made a picture of how I understand your system to be executed. I illustrated a short as the 5m Doji Arrow became down after the PP4, and then an early long right afterward when price broke the PP4 BM. Can you confirm that my understanding is correct or point out if I have an error in my thinking?
Thank you,
Magic
I waited for the first End Effect of the morning and I made a picture of how I understand your system to be executed. I illustrated a short as the 5m Doji Arrow became down after the PP4, and then an early long right afterward when price broke the PP4 BM. Can you confirm that my understanding is correct or point out if I have an error in my thinking?
Thank you,
Magic
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Profit targets and stop-loss levels must be an integral part of your trading system and should be established at the time of trade entry. Recent trading ranges, the technical studies you might be using or the decision-making basis you are using to enter the trade to begin with, and your anticipated position holding time frame all must be considered. For example, a day trader using a MACD study on 5 minute data should have different targets than a swing trader using a MACD study on 360 minute data.
I also agree with RN 110 % about conditions. If, for example, the technical study or other decision criteria for entering the trade are no longer valid - get out of the position even if you have not yet reached your previously established stop-loss level.
I also agree with RN 110 % about conditions. If, for example, the technical study or other decision criteria for entering the trade are no longer valid - get out of the position even if you have not yet reached your previously established stop-loss level.
In terms of a place to start, Pivot Points (S/R) or volatility studies like BB might be useful for setting profit targets and stop-loss levels. They are not, however, optimal IMHO. But a good place to start for a Newb. Finally, you will never sell a top or buy a bottom so get over the money you will be leaving on the table or the loss that you took and the market subsequently comes back. It is what it is and it happens to every single successful trader on an ongoing basis. Cannot be avoided so save your anxiety for your cheating girlfriend.
Thanks for your illustrated MADA report.
I will go over several items to help you out. By just a few tweaks we can get in synch and eliminate any fuzziness in trading the ES with SCT.