barjon
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Dithering Dave was trading off the 5 minute and had watched the price move up and then go sideways in a fairly narrow 15 point range for half an hour. He decided he would trade a break out from the range.
When the price took a peep above the top of the range Dave entered long. Unusually for Dave the price moved in his favour straight away and inched up without any great enthusiasm until he was 15 to the good 20 minutes later. Dave moved his stop to break even.
As the very next bar ticked up the price started to fall - fast - and was down 11 after the first minute. "Crumbs" said Dave "Maybe I moved my stop too early, I think I'll put it back to the original one." So, he removed his stop but, before he could re-instate the original one, the price had shot past it by a couple of points where it paused. "Damn" said Dave "It seems to have stopped and I'll get out if it goes back up to my original stop level."
The price did bounce and moved up to and then a couple of points past that original stop level. "I'll just wait and see a bit now, it may keep going" said Dave. No such luck, down it went again until it reached the point where the previous fall had stopped. "Seems to be some support here" said Dave "But I will get out if it bounces this time". Well the price did bounce again to reach that getting out point but Dave didn't pull the trigger and down it went again at an ever increasing pace until Dave was suddenly 20 points underwater with still no stop in place with the price below the low of the earlier identified range.
"Heaven to Betsy" cursed Dave "I was 15 points to the good on this trade and now look at it. Might as well hang on now, I reckon it should bounce again". It didn't and Dave eventually threw in the towel with a 45 point loss.
jon
When the price took a peep above the top of the range Dave entered long. Unusually for Dave the price moved in his favour straight away and inched up without any great enthusiasm until he was 15 to the good 20 minutes later. Dave moved his stop to break even.
As the very next bar ticked up the price started to fall - fast - and was down 11 after the first minute. "Crumbs" said Dave "Maybe I moved my stop too early, I think I'll put it back to the original one." So, he removed his stop but, before he could re-instate the original one, the price had shot past it by a couple of points where it paused. "Damn" said Dave "It seems to have stopped and I'll get out if it goes back up to my original stop level."
The price did bounce and moved up to and then a couple of points past that original stop level. "I'll just wait and see a bit now, it may keep going" said Dave. No such luck, down it went again until it reached the point where the previous fall had stopped. "Seems to be some support here" said Dave "But I will get out if it bounces this time". Well the price did bounce again to reach that getting out point but Dave didn't pull the trigger and down it went again at an ever increasing pace until Dave was suddenly 20 points underwater with still no stop in place with the price below the low of the earlier identified range.
"Heaven to Betsy" cursed Dave "I was 15 points to the good on this trade and now look at it. Might as well hang on now, I reckon it should bounce again". It didn't and Dave eventually threw in the towel with a 45 point loss.
jon