Anyone Trade Reversals using Orders?

[oiltanker]

Anyone trade reversals using orders at round numbers or other s/r and then just sit and wait till price hits it in the hope it reverses for x pips?

seems the bounces are so common and sharp it looks to me that is what others must be doing?

 

[bbmac]

Anyone trade reversals using orders at round numbers or other s/r and then just sit and wait till price hits it in the hope it reverses for x pips?

seems the bounces are so common and sharp it looks to me that is what others must be doing?

No, I always wait for price action to confirm so enter on a market order not with a pre-placed resting order

 

[GammaJammer]

Anyone trade reversals using orders at round numbers or other s/r and then just sit and wait till price hits it in the hope it reverses for x pips?

seems the bounces are so common and sharp it looks to me that is what others must be doing?

Tough to do in this market unless you have deep pockets and are VERY sure of your levels.

 

[oiltanker]

yes me too but there must be some who don't wait for confirmation. [like the pivot traders]. waiting for confirmation means waiting till x pips have gone.

if it goes down/up to the next sr then they just get stopped out or maybe average? which might make sense if you are with the main trend.

 

[oiltanker]

Tough to do in this market unless you have deep pockets and are VERY sure of your levels.

yes it looks a deep pockets strat.

 

[GammaJammer]

I have short arms, so it's an issue. Same problem when I go to the pub

 

[tony_snowball]

Does work if you trade aligned with major trend and place orders within supp/resist. Tried it with cable on the way up and it works but does require a reasonable sized s/l.

Squeezes in cable subsequent to new highs being made - provide oppurtunities for orders to open to get hit and get in at decent levels.

Found it adds a level of discipline - and requires patience and confidence to know if order doesn't get hit another retracement / reversal will be along like the proverbial bus.

 

[GammaJammer]

One advantage is that it allows the more 'discretionary' trader (i.e. not strictly mechanical / indicator based) the opportunity to 'plan your trade and trade your plan'. Which is super-awesome - I'm psyched. I'm pumped. Woo Hoo