Kreslik.com - traders community since 2006

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My problem with this kind of concept is that whenever price is above or below the extremes, I am constantly looking to get in on reversals.

Contrarian till I die, lol.

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THEDOMINICANREPUBLIC wrote:#1Long above the open.
#2 Long above high.
#3 Long above the mid poind.
Do you have any filter trade this idea a better way?

1. What is the ATR of the pair?
Position size, stop loss, and profit targets are affected by this.

2. What market conditions am I facing?
This chart is generally moving sideways so I can expect reversals.
The hourly ranges are small so I know to take profit quickly.
There are short bursts out of inactivity so if I hold it is not going to be for more than maybe 4 to 6 hours.




3. What is my maximum potential profit?
How many stop losses can I fit in the average daily range?

Imagine that there are 25 charts in front of you and you have 2% to risk per trade; you can capture 6+ pips on
all of them but only 20+ on some of them. Do you trade every pair because 6+ is your min. target or do you filter
out the ones where you have little opportunity to make 20?

If you never hold then it doesn't matter, but if you do hold a pair that doesn't move 20 as if it does then there could be
problems.

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THEDOMINICANREPUBLIC wrote:If are expecting a reversal, what signal would you use to enter and exit your reversal ?

I will enter as price reverses down through the high points, with red weekly candle color, keeping in mind that if there is a reaction near the 40 SMA then price is likely to continue (bounce) rather than reverse (close over).

Timing your entries with the cross ensures a better signal: for instance, if you look at the M30 then you wouldn't go short through the green line until price dragged the SMA past the line marked '6' so that there would be a better chance of crossing both the line and the SMA; if price continued downward and the SMA flattens out and starts to reverse then you would take the next lower green line as price will have met your criteria.

On the 240 chart we have a double pointy place that lines up with an SMA cross so there is a valid signal at '1' or I could take the candle color at '0' as weekly color can stand on its own.

On the M30, if you have weekly color at the first green line then then you didn't have it at the 2nd or 3rd or if you had it at the 2nd then you didn't have it at the 1st and the 3rd, etc; candle color will automatically filter out trades that are against "the direction of profit".

Trading the weekly SSG I will risk up to 1 line to make 0.75 (price touches +1 and reverses) or more lines:
If the lines are 40 pips wide and I exit early, due to an M30 reason, for -8.5/40 pips then that is -0.2125 lines or ~1/4 of a line.
The next weekly candle can only be shorter or longer than the prev. one so looking at the weekly chart we might guess that if it is shorter then it is going to line #2 and if it is longer then it has to go to at least line #4 or 5.

Trade what you see & don't trade what you don't see.

Buy from areas where you see buying & sell from areas where you see selling.

Risk lines and make lines.

Take what you can according to the clues (ATR, statistics, etc).

This is a mashed potato strategy made from several threads.

THEDOMINICANREPUBLIC wrote:#1Long above the open.
#2 Long above high.
#3 Long above the mid poind.
Do you have any filter trade this idea a better way?

Hi THEDOMINICANREPUBLIC,

Nice to see you postings. Filter you ask? Yea sure, add 4 Moving averages 14,50,100,200, remember to add macd as well. When 14, 50 cross downwards and 100,200 cross upwards and macd is totally confused - that is the Signal. Don't think just trade it.

Why do you need a filter when you already crushing it from your results. If you insist. Trade only in with weekly and monthly candle colors.