Blind Mouse Strategy

[MightyOne]

Uncertainty is a batch I know, good thing I don't need the money

Based on this, S&R lines based on STF H1 candles as opposed to CCs.

[newark18]

At first glance, my reaction is huh? I thought S&R lines were derived from candle closes. And I see conflict between: (1) 50% mark is S&R used when doubling position; and (2) S&R line is your average price.

If someone who understands this chart can speak in nongenious terms then I would appreciate an explanation.

[MightyOne]

At first glance, my reaction is huh? I thought S&R lines were derived from candle closes. And I see conflict between: (1) 50% mark is S&R used when doubling position; and (2) S&R line is your average price.

If someone who understands this chart can speak in nongenious terms then I would appreciate an explanation.

If you double your position then your average price is the midpoint between your first and second order making a 50% RET your line of S&R...

[MightyOne]

If long:

Price should not close below your average price.

Price should not close below a line of support.

If you would take a short trade then you should not be long.

If you exit prior to a correction then you should enter where you would take profit had you actually went short.

[MightyOne]

[MightyOne]

I know that the gain in the above chart is not even worth posting

I saved it here for Vane so she can go back over the googletalk discussion and look at these charts

[vane]

Thanks a lot MO

[cwn6161]

Any comments on my picture would be very helpful.



The top left blue line represents S&R. Large blue CC could not close above it, and price starts to move down. My potential entrance is the first red line.

Lower blue line is a new S&R. My exit is the red line, at the point where the large blue CC crosses over S&R line.

I believe I've got the concept of S&R. Determining the entrance/exit based on that is more difficult. This example is pretty clear cut, but how did I do on choosing my entrance/exit?

[newark18]

At first glance, my reaction is huh? I thought S&R lines were derived from candle closes. And I see conflict between: (1) 50% mark is S&R used when doubling position; and (2) S&R line is your average price.

If someone who understands this chart can speak in nongenious terms then I would appreciate an explanation.

If you double your position then your average price is the midpoint between your first and second order making a 50% RET your line of S&R...

So I interpret what you wrote to mean that S&R lines are derived from your average price rather than how previous candles closed. I previously thought that we look to candle closes to derive our S&R lines and use them to protect our average price.

[aliassmith]

Well you did hit the extreme I see. I don't believe I could of or would of
held the position like that. I definitly would have took profit at the place I
marked held profit. There was also nice entry near where I marked
resistance to go short again.

Guess "I" am more confortable trading from stops to stops, instead of
from stops to extremes.