MightyOne wrote:alexi13 wrote:Here's my today EU trade. I've placed my stop/position at the extreme.
Now I ponder, was it possible to avoid that loss?
Sure it was. If only I had space of 31 pips I would have gained easy 100 pips.
But wait, then it would not be position at the extreme but 16 pips away from it.
So my question is do you always place your stops/positions exactly at 2d+ extremes, or do you oversize your space sometimes?
Please note the "+" in "2+" day extreme, it means that you want to have your stop AT LEAST that far away.
The idea is to trade from the large chart extremes with the smallest amount of space/risk & then accumulate
size before the large chart makes a significant move that carries you to a %target.
So many people think that because they can profit that it is a good trade when it is long term position & potential that determines whether or not your trades are 'good'.
Anyone can make 20 pips, who can make 1000%? The right thing is most often the narrowest road.
EDIT: #3 should read "...a signal to fade the unlikely event..."
Alexi - thanks for posting your chart - the response is worth the loss - the education from it is priceless
I learned more about the behavior of the crash zone by drawing it by hand - seeing how price expansion in a direction effects the zones on the current week - please try using the formula MO posted above - maybe before using the indicator - a pain in the arse to do - but ultimately worth it