LeMercenaire wrote:IgazI wrote:I know that I'm kinda reinventing the wheel here, but it is the only use that I have found for the pointy places.
This is similar to the 1-2-3...
'A' is a pointy place
'B' is nearest to the open or close of 'A' and you mark a line on said open or close
'C+ you trade in the direction of 'A's pointy place.
pointy_places.png
When you say you trade ''in the direction of 'A''s pointy place, sorry but does that mean (in this example) you'd be going short back down towards the 'A' at close of 'B'?
The line is either the close or open as you are taking the farther away of the two as a stop?
I dunno' if I'm having a particularly thick day today!
No worries.
A is the 'pointy place': there is a low & a higher low before and after it.
If B closes near the open of A then short the open of A on the open of C, D, E, ...
If B closes near the close of A then short the close of A on the open of C, D, E,...
The stop is 20.25% of an average of the smallest 2-day range of the last 11 bars:
using the smallest ranges of a larger chart should encapsulate the congestion of the smaller charts
without being subject to being driven up by the larger price ranges.
If 2/3 of your position takes profit at T2 (green number) then your position is BE;
that is the reason behind those numbers.
1. candle turns red, short 1 unit.
2. in profit by T1, short 2 units.
3. 2 units in profit by T2, exit 2 units
4. hold 1 unit for a larger win.
Profit is 1/3 of the stop + 1/3 of the total move.
Risk is 1/3% of stop, 100% for a handful of pips, and then BE for the run; all without moving the stop.
Maybe the bar 'flickers' between red and green: i am in there with 1/3 and 33.33% risk:
maybe price plummets 35 pips and I don't get a chance to add the other 2 units: profit is 1/3 of 35 or +11.6 pips
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