Jalarupa wrote:Sacrophage wrote:I've been short EA. Exited Fri. Want to be short again, ideally from the top of the cone or better with a stop above 1.53, for a break below the low @ 1.519. Maybe exit the short at the cone that develops after that breakdown. If I don't get the entry, do I chase, or should I not even be looking for this entry, and instead be waiting for a move back up to 1.54? Secondarily, since you need to use such tight stops to trade big leverage, I imagine waiting is 90% of the strategy. What % of trades don't quite make it into your acceptable SL zone? Or, do you shift the setup and alter volume to accommodate?
If I may your cones are a not correct (I know MO says 15 Degrees) But that's not IMO the best way to draw them... You need to connect Lows and Highs (like I have highlighted here... (this is highly subjective and you will get angles than vary depending on how steep you wish to make the cone)
Once you get the cone right you will see its easy to map future PA... Remember the Cone is the Markets DNA... two opposite forces that pull and push off of one another creating areas of supply and demand...
You are 100% correct waiting is 90% of the strategy... I use a EA (I'm sure I've posted a link to it before) that takes a trade if the trendline that you have set gets touched by PA... So for me waiting is just waiting for the email from FX Synergy to come saying that its GAME ON!
In terms of my personal SL... It depends on the amount of space I wish to give a pair... on a High Beta pair like the EURAUD I would perhaps double my space and half my position... and then scale in aggressively once price starts to distance itself from my average line...
I think the area you are now trading is perfect for shorting (but I'd be more inclined to fade the upper band trendlines (in RED) or the GREEN - because I'm a pussy)
I freaking love you Ja. My respect for you as a trader is the only reason I agreed to this thread. Your trading is like a van go, while im like a 5 year old that can't stay in the lines. Hopefully members will listen to you more then me.