Saturday, January 9, 2010

Trading Plan: When to enter without trendline break confirmation

  • When going short keep in mind that you only can trail stops when 1:1 risk reward level has been reached, so when a new larger red bar appears the stop needs to be above this bar till there is a prices below the LOW of the large red bar minus the range of the large red bar.
  • Always enter in DP areas, but exit can be made when there are rallies to a double top and then a bounce off
  • After a sell off the dead cat bounce pattern is common, so entering at the first base with low risk is better than waiting for a double bottom
  • Low Volume after High Volume Bar, always entering directly below a red bar or above a blue bar

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