"Time stops" generally refer to exiting a position if it hasn't come so far onside after a set period of time.
Say, for example, I take a breakout trade. Here I am looking for a positive feedback loop (where buying causes more buying), so I say "if I am not onside in an hour's time, the positive feedback loop isn't there so I'm getting out".
Say, for example, I take a breakout trade. Here I am looking for a positive feedback loop (where buying causes more buying), so I say "if I am not onside in an hour's time, the positive feedback loop isn't there so I'm getting out".
I wonder if his friends call him "Vaj"?
Some traders use a "3 period rule".
So if you trade has not shown a decent profit after 3 periods, get out (small profit/loss) or tighten up your stop.
But what is '3 periods'?
If you're using an hourly chart - 3 hours
if a daily - 3 days
If a weekly chart - 3 weeks etc
The logic is simple. Most good trades will tend to go your way straight away.
So if you trade has not shown a decent profit after 3 periods, get out (small profit/loss) or tighten up your stop.
But what is '3 periods'?
If you're using an hourly chart - 3 hours
if a daily - 3 days
If a weekly chart - 3 weeks etc
The logic is simple. Most good trades will tend to go your way straight away.
