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I am buying pullbacks & momentum breakouts to the upside on larger timeframes; taking profits and reloading on shorter timeframes.
This is OUTSIDE of my core positions long that I have posted about. My bias is LONG and I anticipate a MULTI-MONTH advance.
The Sunday night vote was meaningless in the long run; fundamentals don't mean a thing in this market. Order flow does. Prices move up and down in cyclical waves; period.
Practiced some manual trades today in SIM on FX Euro. Tools used support /resistance and trend lines. My rules are: the line has to touch in 3 places and buy/sell the first new bar after the line violation. Exit when it nears /breaks a support or resistance line.
I followed the rules except for the second trade entry. Thought for sure it was going fall through after the second violation. I didnt take the trade around 2:30 EST. The bar which broke the support was just too big.
Today was the perfect day for this type of trading. Could have not asked for better patterns.
See the big red lines and notes on the chart. I showed the logic for all the trades.
The last trade was near the intended exit line however the 2nd and 3rd trade blew through lines quickly. I exited the second trade on the large bar retracement and exited the third trade right after the line break.
Just to be clear you are buying 'pullbacks' AND 'momentum breakouts to the upside'? So in essence you are saying that whether the price moves up or down you are buying? That is a really awesome trading strategy plus with your Astrology based predictions how can you fail?
But, I do the same thing. I never put on a full position (all-in) in one spot. If price moves in my favor, I try to add when I believe the trade will continue in my favor. If price moves against me, I will add so long as I believe the overall trade idea is still sound.
Everyone always drills into your brain "only losers average losers", or don't add to a losing position. The trick is, like most things, context.
To me, a losing position in this regard is one where the trade has gotten away from you, it is beyond your initial stop, you've moved the stop, and you are now desperate to "average" the trade by adding to it, trying to turn a loser into a winner. That is not what I do.
I have a pre-determined stop level when I enter the trade. I am willing to add if price moves against me, but the original trade idea still makes sense, and has not taken out my stop. I also add when price moves in my favor.
BTW, it goes without saying, but this strategy really only works when you are trading bigger time frames. You can't make this work with tiny stops. I often have 40-50 tick stops and 100 tick targets, and I find this works well.
If you de-construct @researcher247 posts they are mostly gibberish, often self-contradictory. The post I was replying to was such a post. He claims to buy on pullbacks and breakouts to the upside. And then in the next sentence he says he is taking profits. If you are buying on both pullbacks and breakouts, where exactly do you take profits?