newscalper wrote:That's fine. Right now I see it long but the question was re how to get in short yesterday morning? If it doesn't pullback do you just sit it out?
The question is not when do I enter but what can I afford; position, lot size, pips.
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newscalper wrote:So I'm straight on this - 00 is positioned at the top of the DA candle on the daily and the difference between that and the bottom of the fib is how much space you have or are you using some extreme for the bottom line?
If you don't learn anything else at all then learn this:
The chart that you are trading is the extreme above/below which you have your stop loss order.
If you are looking at a tick chart and place your stop at/above the daily high then you are "trading"/positioned for the daily.
What is the median range of the last 3 days? I doubt it is hundreds of pips, but it could be.
To go for hundreds of pips, you really need position/(stop at the weekly extremes) on the weekly chart.
Think of your stop loss as an entry onto a higher time frame where your entry is the best price of that period.
When you increase your position size, your entry price becomes an average (it moves) and is similar to a trailing stop on that period...hopefully you follow.
MightyOne wrote:newscalper wrote:So I'm straight on this - 00 is positioned at the top of the DA candle on the daily and the difference between that and the bottom of the fib is how much space you have or are you using some extreme for the bottom line?
If 00 is at/above a daily extreme then you are trading/positioned for the daily chart.
The other end of the fib (##) is your "risk space" or 90 pips in this example.
The lot sizes show where you can afford x number of lots.
If I short 8 lots at the 50% ret then my risk space is 00 to the 50% level; which is now ## as ## is always the current price WHEN you are in a trade.
Think of your stop loss as an entry onto a higher time frame where your entry is the best price of that period.
When you increase your position size, your entry price becomes an average (it moves) and is similar to a trailing stop on that period...hopefully you follow.
MightyOne wrote:... Saying that the lines of Fibo Space are rets is inaccurate and leads to a misinterpretation of their use...
it is probably better to think of them as thresholds into areas of better risk/reward ratios...