OK, let’s move down to the 3min ES chart. And on the surface it was an easier day where the TS4 buy early in the day was up “in the direction” of the 15min Chart as it was rallying into the 15min DP so was a good one to take.
But the question comes on the two trades that unfolded “after” the 15min Chart had hit the DP and started to reverse. These were now “against” the new 15min down trend. So what should you do.
On the surface the easier thing is to just pass on these. BUT for the Advanced Traders among you, you can consider taking them but just moving your stop to break-even quicker, for example, using the 100% initial risk level. This protects you quicker and in this example would have avoided two losing trades with two break-even trades.
The 100% initial risk level is a good one to use when the pattern is less clear. For example on the nice TS3 sell on Wednesday in the 3min ES. Again, it makes sense to protect yourself quicker when the larger degree pattern is against you or (more often) is less than clear.
Thanks
Steve
But the question comes on the two trades that unfolded “after” the 15min Chart had hit the DP and started to reverse. These were now “against” the new 15min down trend. So what should you do.
On the surface the easier thing is to just pass on these. BUT for the Advanced Traders among you, you can consider taking them but just moving your stop to break-even quicker, for example, using the 100% initial risk level. This protects you quicker and in this example would have avoided two losing trades with two break-even trades.
The 100% initial risk level is a good one to use when the pattern is less clear. For example on the nice TS3 sell on Wednesday in the 3min ES. Again, it makes sense to protect yourself quicker when the larger degree pattern is against you or (more often) is less than clear.
Thanks
Steve
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