OK, let’s now look at the 3min Chart.
The first trade of the day was not filled because the YM rallied and exceeded the high “before” taking out the buy order, so no trade. Then there was a legitimate buy that resulted in a -1R loss. Yes losses can and do happen, but as we all know by now, the trick is keeping them small, which is what we did here.
Then the question comes as a DP sell arrived later in the day. Yes this was in line with the 15min DP so was a valid one to take. But the difficulty came as a TS4 buy appeared a little later. Should you ignore, or stop and reverse or what ?
This was a difficult decision, because, yes, the 15min was at DP resistance, but that was only minor. So the best course of action would have been for the standard traders among you to just protect the profit as the TS4 buy came in. But the more advanced traders among you could have stopped and reversed for another +2R on the way back up again.
But before you all email in, this was not an easy call as the DP high was only minor resistance on the 15min chart.....And that is all that unfolded – a minor decline from that high.
Thanks, Steve
The first trade of the day was not filled because the YM rallied and exceeded the high “before” taking out the buy order, so no trade. Then there was a legitimate buy that resulted in a -1R loss. Yes losses can and do happen, but as we all know by now, the trick is keeping them small, which is what we did here.
Then the question comes as a DP sell arrived later in the day. Yes this was in line with the 15min DP so was a valid one to take. But the difficulty came as a TS4 buy appeared a little later. Should you ignore, or stop and reverse or what ?
This was a difficult decision, because, yes, the 15min was at DP resistance, but that was only minor. So the best course of action would have been for the standard traders among you to just protect the profit as the TS4 buy came in. But the more advanced traders among you could have stopped and reversed for another +2R on the way back up again.
But before you all email in, this was not an easy call as the DP high was only minor resistance on the 15min chart.....And that is all that unfolded – a minor decline from that high.
Thanks, Steve
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