I am only interested in trends and the major swings. I want to trade the swing high down to the swing low. Trading from support to the next resistance doesn’t thrill me anymore.
When I see a price reversal bar after a trend (the longer the better). I jump in to position myself for the trend in the opposite direction. This is a high risk area and so I trade reverse position price action to keep me in or get me out until I see the signs of a trend change. I am about as good at calling tops and bottoms.
Once I see the trend change, I start looking for other signs to tell me if it’s a trend or consolidation. Then I look for signs to tell me something about the trend. I have always been a "looker" - in fact I've been told I'm a "good looker".
I am an eternal trend optimist – I look to enter a trade in the hope that it turns out to be another multiple yearly salary trade.
I am frequently stopped out of trades, sometimes with 100 - 200 pip losses as I hold on, but these are so small relative to what is at the end that they are not even worth subtracting from the total.
It has taken me several years to become successful at this so don’t think you can read it once and then do it.
I had a “light bulb going on” moment in 2005 when I recognized the 3 different and distinct areas of change within a reversal and development of the next trend. Then I realized I needed 3 different and distinct strategies for each area. Then I realized I had to go against all the rules and release the “rebel” in me if I was to go from an ordinary trader to a “bit better” trader.
When I see a price reversal bar after a trend (the longer the better). I jump in to position myself for the trend in the opposite direction. This is a high risk area and so I trade reverse position price action to keep me in or get me out until I see the signs of a trend change. I am about as good at calling tops and bottoms.
Once I see the trend change, I start looking for other signs to tell me if it’s a trend or consolidation. Then I look for signs to tell me something about the trend. I have always been a "looker" - in fact I've been told I'm a "good looker".
I am an eternal trend optimist – I look to enter a trade in the hope that it turns out to be another multiple yearly salary trade.
I am frequently stopped out of trades, sometimes with 100 - 200 pip losses as I hold on, but these are so small relative to what is at the end that they are not even worth subtracting from the total.
It has taken me several years to become successful at this so don’t think you can read it once and then do it.
I had a “light bulb going on” moment in 2005 when I recognized the 3 different and distinct areas of change within a reversal and development of the next trend. Then I realized I needed 3 different and distinct strategies for each area. Then I realized I had to go against all the rules and release the “rebel” in me if I was to go from an ordinary trader to a “bit better” trader.
Maybe next time you will read, listen AND understand.
Funny mentals (fundamentals) are best left for those that understand it
and can trade it. I believe funny mentals are already factored in and
reflected in prices so just trade what price action tells you.
"The longer the better" was referring to the previous trend - so, cause
and effect - the longer the trend, the bigger the reaction.
By "reverse price action" I meant that in that particular high risk area where people are both getting on and off the train, I will look for a price reversal bar to get me out of the trade. I have entirely different trading strategies for those three different and separate areas. In this high risk area, I need to be out at the slightest sign of doubt.
By "reverse price action" I meant that in that particular high risk area where people are both getting on and off the train, I will look for a price reversal bar to get me out of the trade. I have entirely different trading strategies for those three different and separate areas. In this high risk area, I need to be out at the slightest sign of doubt.
No comments:
Post a Comment