Well, this where common sense and experience comes in, two qualities a purely mechanical system will never have !
First, you must know that you are in the quiet part of the cyclical nature of trading cycle (see post below), so you are not anticipating big profits. This is a mistake many amateurs make, they seem to expect big profits everyday this simply does not happen in the real world.
As you can see from the chart, the TF had reached the level of the prior wave b low, but had not quite reached the DP from this low. Yes the DP is the “normal” first target on a quiet day, but what do you do if you are “almost” there.
Well, I would suggest looking to see if you could lower your stop to lock in at least a small profit, And for this I look for minor swing pivots to use. In the Russell there was one at 0.7R Profit, so this made a good place to lower stops to.
As you can see, this is where common sense and experience can help over a purely mechanical system.
Thanks, Steve
First, you must know that you are in the quiet part of the cyclical nature of trading cycle (see post below), so you are not anticipating big profits. This is a mistake many amateurs make, they seem to expect big profits everyday this simply does not happen in the real world.
As you can see from the chart, the TF had reached the level of the prior wave b low, but had not quite reached the DP from this low. Yes the DP is the “normal” first target on a quiet day, but what do you do if you are “almost” there.
Well, I would suggest looking to see if you could lower your stop to lock in at least a small profit, And for this I look for minor swing pivots to use. In the Russell there was one at 0.7R Profit, so this made a good place to lower stops to.
As you can see, this is where common sense and experience can help over a purely mechanical system.
Thanks, Steve
Posts
