Since the method to enter at 50% retracements generates to much (unprofitable entries) I going to restrict the entry method to movements with a minimum of 50 ticks:
Reversal:
Wait for the market to get to support (prior day low) or resistance level (prior day high)
On support :
- wait for the market to go up 50 ticks, then down 50% of that up movement then enter long
- if the market does not retrace 50% or you missed the entry, go long above a close of the first swing high
On resistance:
- wait for the market to go down 50 ticks, then up50% of that down movement then enter short
- if the market does not retrace 50% or you missed the entry, go short below a close of the first swing low
Market trades inside prior days range (is not near prior days low or high) or at the open outside prior days range or fails to generate entry signals for a reversal trade, I am looking for entries at intradays highs and lows.
On support :
- enter with a limit order at prior low
- if you missed the entry or did not get filled, go long at a pullback or on the breakout (close above) of an range
On resistance:
- enter with a limit order at prior high
- if you missed the entry or did not get filled, go short at a pullback or on the breakout (close below) of an range
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