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Drain The Bank - Questions

Posted: Mon May 04, 2009 10:48 am
by oldmangeezer
TRO,

First of all thank you for Drain The Bank.

I am new trading Forex and currently demo trading.

Have a couple questions using Drain The Bank:

1. I have noticed when price penetrates major support and resistance (3 semafor) the "3" also moves. When do we actually trade the reversal when we see this occur?

2. It also seems when the market is very active you need to be quick to pull the trigger on a trade. What would you recommend or what do you do when you are preparing for a trade?

3. My last question is what do you see are the most common mistakes traders make who use "Drain The Bank"?

Maybe this would be a good thread for stupid questions like mine. LOL

Thanks again

Posted: Mon May 04, 2009 11:05 pm
by TheRumpledOne
1) If the "3" moves, you wait for that M15 candle to close. Do Not trade on a reversal candle. The indicator tells you when it is OK to Trade.

2) You are either quick or dead.

3) They don't follow the rules is #1. #2 is over trading.

Posted: Mon May 04, 2009 11:08 pm
by Humble
Good questions.

Trading Semafors is tricky cos they move on ya. I think they form too soon and would like to see them form at the same time as fractals or the barrys s & r. If you put the fractal indicator on the same chart and only use the semafor when a fractal has also formed, you will save a lot of early signals.

Posted: Tue May 05, 2009 12:24 am
by TheRumpledOne
Humble:

It's not the semafors, it is YOU!

When a semafor forms, look for a BREAKOUT BEFORE looking for a REVERSAL... IT IS THAT SIMPLE.

Posted: Tue May 05, 2009 11:10 pm
by Humble
Ok - thanks.