pierre23 wrote: eudamonia wrote:
cfabian wrote:Buzzard was on "get ready" for EURUSD, with 4 green candles.
Got in at next H1, at open -6 pips (red candle), it reversed and turned green again. I stoped it at -15.
Any comments on this trade?
A couple thoughts on this trade. The first is that it has been my observation that "good" buzzard trades should immediately show you the money. Others may disagree but if I see the first 5 min bar where I get in close in the opposite direction - I get out. I try to keep my risk under 10 pips.
Second, is that you can see that in the 3rd hour we already bounced off of resistance in a meaningful way. This might be a tip that selling is all done for the moment.
Lastly, remember that there are winning trades and there are losing trades. The key is to ride your winners and cut your losers. If you don't start making pips in the first couple minutes the odds are that this isn't an ideal trade. Why risk money on less than ideal trades? Just get out for +1, 0 or -2 or even -5. Trade like a cheetah - if that gazelle doesn't go down on the first paw swipe - why are you still chasing it?
First up, you said it went 6pips into RED, and you enetered when the hour opened? How much was the spread? Looks like there were a FEW pips to be taken if price stalled before going back up.
Second: I NEVER trade as soon as the hour opens, even if there are 3 green/red before it. You have your psychological lines plotted at the 00 25 50 75. Why not use them?
The hour opened in the middle of the 75 and 00 lines. If price went down to your 75 line its more of a confirmation that the candle wont reverse right away.
If it was me I would have even had a limit order for LONG at the 1.3000 line. I find after it hits a 00 it generally keeps going for xx pips. Not to say that it won't reverse, but it generally keeps going a bit.
Thanks Ed, Pierre and Razor for your answers.
As per Ed's, I cannot see that significant move off resistance that indicates no more downs... it was for around 25 pips.
I agree with your risk no more than 10 p. Actually, I was used to trade EURJPY, but spread is varying so much (from 4 to 9). I know... I don't have ECN broker, I'm with IBFX. Due to this, I decided to try EURUSD, which has a 2 pip fixed spread. For scalping this spread is reasonable.
Pierre, as per your's, spread was 2. I got 3 pip profit, but it picked up so fast to H1 opening price I couldn't do anything.
I was trying the buzzard, as all the idicators where there. Thus didn't trade the horizontal lines.
Razor, thanks for your words as well.