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Perry, I'm rereading this thread a third time for the detail I previously missed when I had alot more information to absorb. My question relates to the chart in Post #110 which I'm unfortunately unable to copy for whatever reason for your convenience. But when I look at that chart I do not understand the first and third setups. I understand the reason for not taking the middle trade. But it seems you bent the rules in the other two trades. I'd like confirmation that I am seeing correctly and understanding for the reason you have identified those as setups.
Many thanks again for your generosity. My appreciation for your gift is beyond words.
Had a look at this chart, and do not quite understand why you think I bent the rules. Can you please explain what is confusing so that I can try and help you.
Good that you asked me what I was seeing because when I went back to look I caught the error in my perception, on the first trade. Your arrow is pointing to the setup bar as you indicated -- not the entry price or tick. The actual entry for the first trade is the very bottom of the bar you are pointing to, correct? For some reason I thought the actual entry for the trade you were pointing is was the top of that bar.
However, on the third trade, it seems to me the poster who first set up that chart has a green arrow for his long entry and I would take that same trade. Aren't you always entering a long one tick above the high candle of the prior five candles including the current setup candle?
The first trade you are correct in your analysis. On the third trade, notice I said "this is a better setup bar", that is, where the green arrow is also a setup bar, but I would prefer the EMA(5) to cross up and over the EMA(20) giving me a higher probability. This was just my preference. Sometimes experience is also part of trading and not only dry indicators.
I totally understood what you said in the original post, #110, about the "better" entry price. I see those situations myself (even though I haven't begun to trade yet) and I'm pulled between following the rules to the letter and wanting to cutoff wicks to disregard them because a lower price strikes me as a better entry. But I don't want to get into any bad habits before I even start trading with your methodology.
Could I trouble you to occasionally post additional setups you see and comment on them so we can benefit from a wider experience from your point of view.
Yes. I actually have the SMA(50) on my charts just as an indication as to the major trend of the market. Some people like to go only LONG when above this MA and only SHORT when below. It is a personal preference.