Here is a picture of a trade that I took yesterday. When zooming you you can see that a large  impulse leg was formed that hit a point of major structure support (from the past). It then retrace a little bit and came back down to re-test that same area. After seeing the RSI divergence on this trade I became the perfect opportunity to get a low risk entry. Low risk meaning that I would have a good risk/reward ratio (amount that I could gain compared to the amount that I could lose). After the market wiggled around a little bit I was able to move my stops up a bit to save myself from a bigger than necessary loss if the market decides to reverse. Trade management is just as import as spotting good trading opportunities. 
10/6/2011 04:28:36

Nice call on the Dbl Bottom. I made reference to it as well in a post on my site. Then today, we came down further and produced a failed wave as defined by Scott Carney in Harmonic Trader 2. Anyway, keep up the good work here.

Doug

Reply



Leave a Reply.