On a trading range day, a failed breakout such as b26 may be traded if the signal is strong. I often pass up the setup if the move I'm fading is channel like and wait for 2 failed attempts to continue the move first (b30,32). This is because the first attempt to fade the channel will usually fail.
On the other hand if the breakout gives a poor signal bar (b60) or does not trigger (b65) or otherwise fails twice to move back into the range, I will usually look for BP instead.
A second option is to recognize failed L2s as a soft trend move and buy above the next signal bar (b36 or possibly b38, b53, b73). The brave can buy the close of the second attempt on limit with a stop below the next lower bull bar or a tight money stop.
Hey Cad,
ReplyDeleteGood post.
1. If the bar 6 low went below bar 5 red bar low, would you have shorted it as 1 Rev?
2. I am assuming you skipped the FBO @ b25 because of the red bar. What about taking a long 1 tick above the green bar @ b26?
3. I don't see a reference to the channel. Can you point the bars you used for the channel.
4. FH2 @ bar 19 is it something you look for and short?
Thx,
Buster
Would you consider b19 as A2 even though it didnt touch the 20 MA?
ReplyDeleteThx,
Buster
What do the numbers under the bars mean? For example under Bar 1 you have +2,+0. Under Bar 6 you have +3,+4,+0. Thanks.
ReplyDeleteSneakOner, those are exits. It means I exited some contracts at +3 some more at +4 and then was stopped out at breakeven when the price pulled back.
ReplyDeleteBuster, b19 is not an A2 since b17 outside bar resets the count.
ReplyDeleteCadaver,
ReplyDeleteThanks for the quick response. It looks like you want A2 to be a HL as everytime we have a LL, it resets your count. Right? In this chart, b15 had a LL so count reset & b19 had a LL so count reset. So A1 is b26 and A2 is b34. Correct?
Thx
B
I see in some trades you do +2, +0 others +3 +4 and yet others +1 +3. Even your T1 seems to be different for different trades / setups. Your targets are different for different setups @ diff time? At what point do you make your stop to BE.
ReplyDeleteThx,
B