Getting back to basics- trading false breakouts and candlestick reversals
I am completelly sure you can make over 30 pips, when you have developed a system that works for you it means you have experience, you know the dinamics of markerts and somehow you have learned to manage your risks, so i would bet you make your 30 pips or more, ok, let me ask you these, would you consider a tight stop lets say 10 pips?
Here's one.
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will do, market opens in 5 minutes i think, i will try to trade that possible short on the EUR/JPY- only , only if there is a confirmation bar, there are just so many reversal candles that pop up and aren't confirmed, yes you could take the risk but i'd prefer to have confirmation. Having divergence in itself is confirmation, so this could be a nice trade!, unfortunately it'll take 4 hours till one bar is made, i could be sleeping at that point!
i am very excited though, this time i have a strict system for entry and exit- a first for me! This should reeeallly help my unplanned as-it-happens indecisiveness. Someone told me when i joined this forum that when backtesting i should look for a system where i actually would have traded the old set ups, so i tweaked entry and exit rules, and now i feel confident that i would have definately traded these old setups, not just the old 'woulda entered here,exited there'
ok this is why i wait for a clear reversal candle! didn't enter a position on this , thankfully
As you can see i was ready to pounce, was waiting for a full candle confirmation, all i got in the end was another doji, and a bar which couldn't close above the doji, so left it alone.
SOMEONE VIRTUAALLY SLAP ME FOR TRADING CANDLE REVERSALS ON THE M1 AND NOT THE H4. But on any timeframe , wait for a real, clear confirmation bar, another reversal isn't a confirmation bar, what we need is a clear green bar which closes above the highs of the previous candle-that for me is the key for exit
As you can see i was ready to pounce, was waiting for a full candle confirmation, all i got in the end was another doji, and a bar which couldn't close above the doji, so left it alone.
SOMEONE VIRTUAALLY SLAP ME FOR TRADING CANDLE REVERSALS ON THE M1 AND NOT THE H4. But on any timeframe , wait for a real, clear confirmation bar, another reversal isn't a confirmation bar, what we need is a clear green bar which closes above the highs of the previous candle-that for me is the key for exit
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Are you trying to guess the tops and bottoms with your strategy? If you are, this is high risk. Have you considered waiting for confirmation of a trend reversal (as was previously suggested e.g. break of support/resistance)? Just my opinion.
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N Rothschild
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:whistling
was just thinking the same thing! perhaps if a pair is in a strong trend - like the EUR/JPY i should trade the 15 minute timescale reversals, they wouldn't be too counter trend. And the divergence system i made had its entry based on the break of support/resistance. Any ideas how i can trade reversals- but not counter trend reversals?
ps- normally i wouldn't trade such a counter - trend trade, but divergence has just showed up on EUR/JPY recently, which IMO is a sign of reversal
ps- normally i wouldn't trade such a counter - trend trade, but divergence has just showed up on EUR/JPY recently, which IMO is a sign of reversal
why hello there, i'm not as bad now am i?
It looks like your preferred style is that of a swing trader so you have two options - enter (in either direction) on bounces off support/resistance or over breaks of resistance/support - but you need more confirmation than just a reversal candlestick imho.
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yeh, i actually intended to make this thread about trading retracements, it's just i have no idea how to intraday, maybe i'm getting these mixed up, i should be trading cadnlestick reversals within a small trend maybe on a 30 minute chart , and should be trading the retracements on H1 or H4 timescale
