Yes, I bought a wave 4 in a downtrend.But this is a HUGE wave 4.
Price tested low from yesterday, and bounced off that level with a strong bullish reversal pattern, which gave me a reason to stay put instead of scratching my trade after price turned against me almost immediately after my order was filled.
The extremely long bearish candle that extended below trendline support gave me yet another reason to bet on a downtrend that has exhausted itself, and that price is reversing to test the day's high at 1.4052.
Finally, and probably the KEY reason that had kept me holding my position for..let me see...nearly 3 hours (!!!!) was the number 1.4000.
4 comments:
The 6E is looking more enticing by the day thanks to all the gains you're posting :D Nice trading Jules! Btw, I'm noticing some Al Brooks influence on your charts lately :) Did you finish reading the book yet? I'm on page 103
Wow, EP, in one sitting?
I'm jumping from chapters to chapters and never quite fully understanding any one of them. Brooks is mad. Maybe all geniuses are. I can't get his "micro" stuff - maybe coz I'm not an eye surgeon...But yes, I do find the bigger picture theories like trendline overshoot useful. The way he decides what candles to call L1, L2, H1, H2 - that part just kills millions of my brain cells everyday. Everytime I read him, I get a different interpretation!! So I've resorted to using my own numbering convention - as long as it works for me, I'm sticking with it. And until I can understand why I'm labeling my candles the way I do, I'm NOT going back to read his L1s and H1s. For everyday trading, I'm still relying mostly on basic support/resistance, chart patterns, candlestick patterns (not so much for the 6E 5min chart - candlestick patterns don't seem to have any significance - the only thing that matters is how LONG the candles and their bodies are...), and the TAPE.
6E is actually more predictable than ES although its moves are more unforgiving - that is, if you are wrong. If you are right, unforgiving is GOOD. :-)
Do test it out on the simulator :-) Avoid testing on Fridays. Forex spots and futures are equally crazy on Fridays.
Oh no, not in one sitting. I read 25-30 pages every week whenever I get some free time.
Hi Jules, I'm new to trading, stumbled upon blog by chances. Would you be kind enough to share your favourite setups please? Thanks in advance
Post a Comment