Article Catching A Falling Knife – Picking Intraday Turning Points

T2W Bot

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Trying to pick an intraday top or a bottom in a market move can be dangerous, yet many traders are obsessed with trying to get in right at the bottom and out at the top. A common method is to forecast a bottom, place a bid and then watch in horror as prices continue to plummet, resulting in a larger loss than initially anticipated. Traders can get into emerging trends early and exit near the top, but a prudent strategy requires that we wait for the market to provide us with a signal – a sign that it is reversing – before we enter/exit our position. In this way, we can enter and exit at relatively good prices, but with the benefit of knowing what our risk is, and having a solid indication from the market that is has already turned.
Patience Is A VirtueThrowing out orders and hoping to be in the vicinity of a top or bottom is a statistically losing strategy. Such an approach has no merit, and constant trading will result in excessive fees. With continuous volatility it is...
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NVP

Legendary member
36,905 1,905
Nice piece

Nice piece......I use this technique a lot on my forex scalping .......I also incorporate time windows as well .......N
 

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