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Tuesday, March 20, 2012

Another David, another chart!

"X, I have found that these setups tend to work nice: a gap down, and a move back up though the previous day's range, with a setup after a pullback from the high. An example would be DTV from today. 15-minute chart, Fibs over the opening range first three bars, and I entered on a break of the 5th bar high after price had a brief pullback and found support at the 8EMA. The entry signal was what you referred to as "offsetting bars". I sold six bars later when price hit the Fibonacci extension. Just curious if any other X readers trade this kind of setup.




Roger said...

I've traded that pattern a lot. Just be careful on those morning reversals as it could fail and turn into a "u" turn.

ElToro said...

I do like to trade those setups but I have a hard time scanning for or finding them when the gap is within the priors day range. Any pointers?

Times of Your Life said...

wonderful trade

Anonymous said...

ElToro, not sure what you mean. I just get my gap lists at the open and scroll through them, looking for all setups. Maybe I misunderstand your question?


Anonymous said...

Thanks Roger for your input (Sorry, I am moving comments from previous post to this one to keep this conversation active). The question really is scalability. As I pointed out in David's question posted on March 6, to improve expectancy (Expectancy = (Probability of Win * Average Win) – (Probability of Loss * Average Loss)), I need to either increase probability of win or my average winner, or vice versa with losers, but those are not in my control (as I have settled on X method after trying several other methods, big thanks to X and others for sharing their methods). But I am still trying to improve my take home, so that I can completely move away from my day job. Other option would be to find more setups (hard to manage multiple positions) or increase size (more capital). What I am trying to understand is whether people using X methods are finding enough setups a week that can make difference in their take home consistently.

Thanks, Tajir

The Dude said...

Do you find that the opposite works - for example, gap up and fall through the previous day's range? So, you would be going short?

David said...

"The Dude" - I don't go short that often, and I find that the short setups don't work nearly as well as the longs. Your experience may differ though.