newschool wrote:buy low sell high...
I think the important part to get much less drawdown is to enter the trade at a higher price than the actual gap.
I think I readed the P.A. fine.
trading strategies and money management discussion, code, results
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tfg wrote:Hi, newschool, how do you decide on entry level and SL/TP level?
I cannot give you a real precise answer... because each trade is different, its always about risk/profit ratio. In that one the ratio was good because I wasn't expecting price to make new highs, since the previous candle wick indicated an oversupply (resistance).
For the TP, I closed half position kinda quickly because I was using high leverage, also there was a possibility of rebound on the Gap's Open, and finally by price action because there was 2 big candles in a row and I was expecing a rebound (wich like you see happened).
Last close was also on a very big candle so I was expecting another rebound (wich also happened by 35 pips), and it was 50% level of gap wich is an important support. Someone could have even entered Long here.
Finally after the rally, it tanked to close the gap perfectly before wicking lows, and up again.
I gotta say, this trade situation was text-book material.
Where are you taking all this things about forex? Do they really as good, as you say? I'm sorry for a lot of questions. I'm rather new in all this stuff and won't mind to hear some good hints about subj. I have already collect some. (if you interested, you can look it - in my signature - I'm not greedy man )
newschool wrote:We have some gaps, looks like pro-gaps wich mean they are selling high / buying low (compared to amateurs gaps continuing the trend). Looking for a ZL retracement then shorting the Euro (E/CHF particularly).
- a pro gap is a gap against the previous trend after a turn in price, in the beginning of a new trend.
- an amateur gap is a gap in the direction of trend shortly before a turn in price. They buy into supply (resistance) or sell into demand (support). Whata mistake to make.
newschool wrote:retraced right at my entry, but then went down to even lower
lets see if it can go below 288
The H&S neckline is at 1.2895
Odds are you're in business here
Waiting to short the Aussie at 0.8681. Might not get there.
PTG wrote:Waiting to short the Aussie at 0.8681. Might not get there.
damn missed the MZ retracement on AUDUSD
...and NZDUSD is even better (down by 50 pips since ZL)
I thought the Euro was weak, but its more like the USD is strong. Mistakes were made.
EDIT:We are simply NOT in a major market session , so price will probably range. I closed half at 289 and let the rest run on breakeven.
Last edited by newschool on Mon Jul 19, 2010 5:06 am, edited 1 time in total.