Notice the internal candles are Red Red Green Green. Nothing wrong with that pattern at all BUT I do like it tighter IF possible.
Now if you double the time setting then either the first two pair up and then second two pair up and give really big internal Red Green candles combination or the inner two do and cancel each other out - doji formation time.
Quick look at 62 min. and it's obvious what has happened this time. Beautiful chunky equal sized alternate coloured candles, no wonder the RSI W is so well defined.
Straight forward trade, check the filters for yourself, it should be coming automatic by now!
Sharp tight shape?
RSI level?
Price/Bollinger?
Entry RSI will be? Leading to price entry @ ?
Reward:Risk?
So today it was fixed in my mind that the signal was on ~ 60 min, so when the M came on the 14 min, it was just "noise" and I defended against it without problems. When the W on 14 min arrived I was in trend continuation mode.
The W on 18 min reinforced the trend continuation in my mind, the later M was a good quality one and just in case I shifted the S/L on my running trades to where it would form on Price. It did and with a vengeance.
Why the title? Well it was all building up towards a taking out of 4200, which was just above the top of the M on 14 min that delivered big time yesterday. That would have been a previous strong M, that really delivered but then failed, time to launch some Longs from the profit of the ones already running.
An awful lot of planning and thinking out possible alternatives went into the day's trading. Just seemed at the time like one very big let down, by tonight I'll be thinking of the profit banked!
cheers theory
Good evening Theory,
ReplyDeleteCongrats on the 145pts first time cable trade. A bit off topic but I am interested in how you found trading cable using WM compared to UKX
I am interested as I have been watching it on and off since trigger posted his chart in April. My current strategy is to trade it based on daily and hourly analysis, on strong signals only, low stake/leverage etc. In effect trend trade and try to ignore noise from shorter timeframes.
Obv I am expecting better opportunities down the line, LB and UB on daily price for example. But currently the move at 16744 from 30jun is enough for me to risk 100 points on my this entry for a poss 500+. If only for the fact that it is closer to my LB than it is my UB.!
This will most likely be a battle with myself more than anything, but if all goes well then perhaps I can focus my day to day on scalping the FTSE rivers/W&MS, whilst riding the tsunamis on cable (sorry)..
Thanks for all you do here and at iii. Hopefully a good sign that we both decided to make our firsts same day same price.
enjoy the weekend, on top of everything I have a mountain of deadheading to take care of..
regards
nbt
Thanks nbt, I'll cover the Cable trades in my post over the weekend.
ReplyDeletecheers theory