Here are three examples on the same day, on the same time setting of 16 minutes.
It is good practice IMO to try and work out what the Price would have been when the RSI target was hit.
Have a look at each one and then decide if you would have traded it or not.
If you had done, then how would you have handled the subsequent action?
If you hadn't done, could you have used it later to instigate another trade?
I'll give my thoughts in the next post tomorrow.
cheers theory
Thanks Theory for this
ReplyDeleteOnly comments are
1) that I find dots on rsi are not as easy as lines. I suppose that is personal preference.
2)It seems obvious but I had not thought of looking for continuation patterns as on lesson 1. I presume you don't initiate trades on these simply use them to confirm what is
happening.
3) I found stage 4 useful. I think my failures are because I focus on the rsi/bollinger action without refernece to the context.
I hope you enjoyed the wonderful weather this weekend.
Thanks again
Zac from UKX board
.............
Thanks Zac.
ReplyDeleteDots / line is personal perference.
Continuation WMs are for when you are already trading, nicely in profit and feeling a bit frisky with "their" money.
Context, context, context is vital - use the filter out, filter out, filter out approach.
Probability?, risk?, and is it worth it?
cheers theory