Captain Pugwash wrote:MightyOne wrote:
Yes, but I will trade in anticipation of a second failure on a small chart.
When the candle finally does close lower I call it 'conformity'; 'confirmation' is waiting for something to happen, 'conformity' is doing something first and expecting things to follow suit.
Don't get carried away though, if there is a LH breakout and there is no short term signal to go short or the daily candle is getting a bit long then there is no expectation of failure.
If I understand right - can i assume that if we did NOT see "conformity" - i.e we got a close back up in the zone ( in your example) - I should be thinking of liquidating a position at the best price? - Having a plan for when things do not go as planned sort of thing?
Also any gained space is not necessarily used on the same pair - nice if it happens but not essential? just take your lot size and use it on the next double failure?
Maybe one proviso - I may decide to ignore only if i believe I hold a yearly extreme
Thanks for not being here btw
Plans can and do break but it is not necessarily a bad thing; instead of that 2nd failure you get a close lower & now you have a body in the direction of profit & your new plan is to trade in the direction of profit:
Having traded monthly/quarterly/yearly extremes, I recommend that your largest period does not exceed 2 weeks
The thread is called 'the Ideas that trade by' and not 'the rules that I live by' because profit is found in a thinking mind.
If you come to this thread with pen and paper in hand then you will fail to find the beauty that exists within yourself.