As discussed in my earlier posts, my Fibonacci lines are plotted from the previous day's close to the current day's open. Price bounced perfectly off the 50% retracement and proceeded to rally to the Fibonacci extension (FE) where it promptly reversed. I entered on a break of the sixth bar's high (an offsetting bar in my language) and exited at the FE for a .90 gain in less than 20 minutes. In addition to the bullish candle formation, price was supported by the rising 8EMA.
note - if you trade later in the morning, CPX presented more entry possibilities as it rallied past the FE.
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8 comments:
X,
Do you look at previous day actions to determine if you will take the trades or not?
Especially gaps that fall within the range of the previous day..?
>.< just in 20 min, its too godly...
Thanks Thanks
The thing I take away from you blog is discipline, and I don't have it yet. I see this kind of setup all of the time. Sometimes I take it, and make money. Many times I don't because I am in other trades that don't work. I wish I could take a pill that would give me the discipline.
It's interesting that you use a 2-min charts. I recently switched to the 2-min from the 1-min, in an attempt to filter out some of the noise from HFT.
Do you notice anything different in the market regarding day trading in the past year while you were working on your new timeframes?
Hi Trader X,
When do you know your trade isn't going to work and where do you exit them for a loss? Thank you.
Cameron, no. My setups have been pretty consistent month after month for almost a decade now.
Flow, my stop is almost always the opposite extreme of the entry bar. Click links to key posts at the top of the site for more info.
Trader X, Thanks. All this great info is helping my development tremendously.
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