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Applying different strategies at once |
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I often get the question of how do you know what to do, and when to do it. The answer is really quite simple. I don’t. I guess like everyone else. None is smart enough, or rich enough to push the market in one direction or another long enough to make a difference. All you can do it get really good at a few setups that you like and wring them out for all they are worth.
For instance, I love the Bump and Run set up. They are easy to find and identifying your targets and stops are incredibly simple. I’ll walk you through a current set up I am watching.
In the above bump and run setup, I was expecting the trade to hit the bottom line, but form here where does it go. A  Bounce off of the line targets the top of the last black candle. This may not fill until the 11th or 12th of the month. That top line may turn to Resistance as price bounce. I have an order already in for this to happen, why? In the last 78 setups for the black candles on this pair, only two of them haven’t filled back in and one of them is about to when price falls to .8951.
If anyone wants the script to draw these black candles, let me know. I can send it to you, but I didn’t develop them by myself. I had help and the other person prefers that the calculations stay private. However, you are more than welcome to actually have the script and attach it to your charts.
Just make sure you are not muddying your thoughts so much that you can’t make a decision about what to trade. Using the above scenario, here is exactly how I am going to trade this pair. Please don’t just copy my trades, do your own research, and come to your own consensus. I have a different risk appetite than you and you know the risk in the currency market is HIGH.
Short: a close below .8990 target at .8800 stop above .9100
Long: At .9155 targets at .9261, I won’t enter a stop on this trade. I am willing to let it run. See, I told you we had different risk appetites.
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ForeXecutor