Good morning traders,
(Please see comments below the charts):
Chart on the left shows today's CCI/Trendline Break/34 EMA strategy trade that netted 24.6 pips. Notice that I took some heat on this one, but had my stop just above the closest blue line, giving me about a 2-1 risk-reward ratio.
Chart on the right shows a harmonic pattern trade that's still active, currently up about 26-27 pips with my profit target currently set at the cyan colored "Limit" line. Also took some initial heat on this one.
I bring up the "heat" topic to let new traders know, that you rarely get into a position and it goes immediately into profit. Taking "heat", dealing with that psychologically, and knowing when/where to take a stop loss is just part of the trading game.
I bring up the harmonic pattern setup, because of a PM conversation I've had the past few days with a trader here on Kreslik. He said he's very "mechanical" and doesn't feel comfortable using strategies that involve any subjectivity. I suggested he try learning harmonic patterns, because they have very specific mathematical/fibonacci rules and that might suit him well. These patterns have have a great Win % and Risk/Reward Ratio. They do take some time to learn, but IMHO that time spent is well worth it. In fact, it has become my favorite (and most profitable) method of trading.
Great trading to all,
(Disclaimer - This post is for educational purposes only. Always consult a licensed investment professional before taking any trade. Any trade you take is at your own risk.)