Sunday, April 8, 2012

Trading Plan: Summary my 3 setups plus entry and exit rules

Here are the rules for my breakout, reversal and re-entry setup

I usually wait for the price to reach a DP area (10-30 ticks area above/below last swing low on 10 min chart) or I wait for the price to retrace to the 50% of prior up/downswing and then I enter by the rules illustrated in following screenshot:


Exit is usually before a news event or if the trend is strong at a target (ideally 3rd wave target (orange box)
but if the trend is strong (oscillator above/below the gray bands) I trail my stop with 3x atr trailing on 3 min chart:

On the 2 / 3 min chart there are also elliotwave setups that I might trade, but for re-entries the 50% entry method proofed to be the best one as you can see on the screenshot: waiting for the price to first reach the 50% line has a better successrate:
Important for these 2 / 3 min setups is to only trail the ATR stop after the first correction and then a more aggressive stop in the target area:

and of course always trailing on the most bullish or most bearish market (YM on screenshot:)






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