Hi there
I've been trying out your method/strategy for a good few weeks now and so far its going well
thank you for all your help bbmac
Just have some additional questions some of you guys might help me out with.
In using the system, I sometimes notice that at SBR RBS levels on higher time frames, reversal set ups are not always perfect as per your examples. For instance entering a trade following the extreme reversal setups, oscillator extremes might have already taken place and some retracement may already be in evidence before the appropriate reversal candle triggers entry.
I was just wandering whether you cut corners on some of your rules. I find that many profitable trades would be missed if setups are followed over-religiously.
I also use price action to identify useful entry points and find that combining this with your methodology produces usful outcomes.
Do you find that some reversal setups occur more often than others?
Whereas perfect reversal set ups are not so common, I find that with trend set-ups are too common.
Often finding suitable RBS or SBR can prove very difficult indeed, and entries often result in losing trades. Have you got any tips and advice regarding the use of these?
Similarly, how long do you stay in your trades. I usually keep trades on longer where major SBR RBS levels are confirmed on longer time frame periods. Often there is a quick tick gain followed by retrace (some loss as price over-reaches) before a more substansive move and larger end profit gain.
Trouble is, in the meantime, original setups which triggered the initial entry are no longer in place.
What setup changes do you look for to decide that the original trade is no longer attractive and you wish to exit your trade?
I'm using Alpari demo account at the moment. Since the commission is in the spread it is sometimes difficlut to keep stops tight. What stop loss rules do you use?
Hi, Thanks for the comments, glad to hear you are making progress. Worth remembering that perfecting any trading edge, or the use of any trading edge takes secreen time, discipline and patience,...keeping a log is a good way of measuring your tangible progress.
Dealing further with points you raise (highlighted in bold italic)
In using the system, I sometimes notice that at SBR RBS levels on higher time frames, reversal set ups are not always perfect as per your examples. Trading a Reversal set-up at a
pre-identified potential sbr/rbs zone should only be done if there is a supporting re-entry set-up on the t/f above which would mean that the potential sbr/rbs exists on the t/f about that Re-entry set-up, as indeed a trend must exist on at least that t/f.
For instance entering a trade following the extreme reversal setups, oscillator extremes might have already taken place and some retracement may already be in evidence before the appropriate reversal candle triggers entry. The most essential ingdeient in the Reversal extreme set-up is the CCi hook back from an extreme at open of first reversal candle (or exceptions given in the manual,) at this point the osma may have come off it's own extreme.
I was just wandering whether you cut corners on some of your rules. I find that many profitable trades would be missed if setups are followed over-religiously.
Trade only the best most prefectly formed set-ups @ pre-identified potential supp/res/sbr/rbs is my general advice, but yes there may be occassions where a set-up or a supporting next higher t/f set-up isn't perfectly formed but the potential supp/res/sbr/rbs you ahve pre-identified has a strong confluence and you get a convincing reversal candle trigger...this makes for a compelling case for entry and in these circumstances where something isn't quite prefect you may want to consider using less risk. Also you can use the further confluence of the small charts. I hesistate to recommend that anyone new to this trading edge cut corners as it may lead to overtrading and mistakes but the circumstances you detail do exist and a more experienced user of this trading edge has the benefit of instinct borne out of experience that may cause them to make an informed decision about entry or not in those circumstances. be careful though, don't veer too far away from the set-ups....I reject many that are imperfectly formed as there are always plenty that are.
I also use price action to identify useful entry points and find that combining this with your methodology produces usful outcomes. Yes individual price action as the trigger in the set-ups is an essential part of the system/methodology.
Do you find that some reversal setups occur more often than others? Not really a Reversal A is the least common.
I find that with trend set-ups are too common. Often finding suitable RBS or SBR can prove very difficult indeed, and entries often result in losing trades. Have you got any tips and advice regarding the use of these? Pre-identified potential sbr/rbs in the form of previous price swing hi/lo's and where possible the confluence of fib and/or t/lines is the key to a Re-entry to next t/f trend after a pullback set-up. I simply ignore the Re-entry set-ups that develop at areas I have not identified as potential sbr/rbs, -they are generally false positives. Remember it is the confluence of the indicator based set-up with protential sbr/rbs and price action trigger all together. I don't agree that potential sbr/rbs is hard to find, even on one pairing (gbpusd) I find plenty of set-ups ' potential sbr/rbs that offer the highest probability trading opportunities.
Similarly, how long do you stay in your trades. I usually keep trades on longer where major SBR RBS levels are confirmed on longer time frame periods. Often there is a quick tick gain followed by retrace (some loss as price over-reaches) before a more substansive move and larger end profit gain. Trouble is, in the meantime, original setups which triggered the initial entry are no longer in place. I have written about this in a post on this thread to a similar question, I refer you to that. I find that when a trigger set-up is supported by a perfectly formed intermediate t/f set-up at a trend t/f potential supp/res/sbr/rbs zone , that tends to the be the absolute top or bottom of the move....but if you act at a trigger t/f set-up alone at that trend t/f potential supp/res/sbr/rbs then price can retrace and 'over-reach' to find the 'real' top or bottom of the resulant move deeper in the pot supp/res/sbr/rbs zone (price tends deep in the zone lest theer be any other confluence of potential supp/res factors elsewhere in the zone.) If you believe in a potential supp/res/sbr/rbs zone and in the case of a trend t/f pot supp/res/sbr/rbs zone you should ensure stop is outside of it and await the intermdiate t/f supporting set-up.
What setup changes do you look for to decide that the original trade is no longer attractive and you wish to exit your trade? See above answer....also if the price does not go quickly/easily in my favour then theat potential supp/res/sbr/rbs or indeed that part of it may not be where the supply/demand is.
I'm using Alpari demo account at the moment. Since the commission is in the spread it is sometimes difficlut to keep stops tight. What stop loss rules do you use? I refer you to the posts (s) in this thread that covers the subject. More generally, because price tends to test deep in a potential supp/res/sbr/rbs zone or at the most obvious point of confluence with any other pot supp/res factors that lie within it, then stop should be placed outside of that...in this instance keeping a relatively tight stop should not be too much of an issue.
Please feel free to come back if you require any further explanation/clarification,...happy to help if I can.
