The original W on RSI was on a timescale that is no longer available in the stored data but the 15 min chart on Price does show the basic ideas.
The S/L was below the W at 4440, with a B/E of around 4456.
The W formed on RSI, Price and delivered a good profit. Then it reversed with three possible outcomes:
My split trades were both stopped out in profit.
An alternative was leaving one at B/E but that would have been hit.
The more aggressive alternative was to leave one at the original S/L - hoping it's something to do with EWT waves are there is no overlap.....
Any surviving trade then went on to deliver a further oportunity to take the money.
Then we get confirmation of the support level but the next move up it not as big as before. Followers of the 1-2-3 system will recognise this as a wide, big M over many candles.
The combination of the formation of their 1-2-3 M on Price and the failure of my original W on RSI was just too good to miss.
If it gives, ride the wave....., if it doesn't, then get out for as little as possible and wait for the next one. I believe that you can't thrive unless you survive!
cheers theory
Great theory Theory. Have been reading this all morning. Looks like an absolute winning approach.
ReplyDeleteCheddar
Evening Cheddar,
ReplyDeletePast performance etc... warning!
The aim is to set up trades that have a high probability of returning a good reward for as small a risk as possible - filter out, filter out, filter out.
If in doubt, stay out.
If it doesn't look promising, phase out - high probability does not mean certainty.
If it delivers .....
cheers theory