David"
_______________
Mentoring: The Key to Developing as a Trader
6 days ago
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.
David"
_______________
David"
_______________
Subscribe to:
Post Comments (Atom)
7 comments:
I've traded that pattern a lot. Just be careful on those morning reversals as it could fail and turn into a "u" turn.
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?
wonderful trade
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?
David
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
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?
"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.
Post a Comment