trendie
I think that strategy is fine, I see that all over the place and all time frames. but i hold to mind that the players will clear stops out from different timeframe traders , but sometimes you can get caught in the crossfire if you use different timeframes.
if you work off weekly use the weekly frame for s/r maybe too far out for me as i assume weekly moves can stretch hundreds of points pullback yet still be in an uptrend.
I think what mark ritchie said in new market wizards makes sense ie about stops trading trends etc, roughly you have to be prepared to sacrifice open profits which are likely to be greater than your initial stop if you want to hold for the big term. that happens to me a lot of the time trading off 15 min bars.
so would imagine if you trade off hourlies dailies etc then pullbacks may seem large but maybe not in context to the original trade entry set up timeframe.
makes great sense to me and has helped immensely, even off 15 minute frames, i'm not always at the screen but check on trend direction now and then .set alert but never far away.
ie if i have a stop of 12/15 and the trade advances 20/30 very often it will pull back sometimes even to entry . choice take the quick 20/30 or hold , I had a tustle for a while because i can read short term moves also, thinking here we go pullingback, a lot of it was me, not thinking greed, take everything, just heres another trade are you going to take it , take the 30 and take another 10 backwards, but Ive learnt to let go and lean back and trade direction, so I operate ala mark ritchie principles, Im still short term intra 24 hour session but the principles hold true across the timeframes.
however if i'm out and I see exhaustion i may take short term trade ,just because its there,low risk 10/20 points, I dont look for it, it jumps out.
I also try to be aware of the bigger times to me ie hourlies up from 15 mins and aware that euro 1.1930 would be a level (value) for continued upside. (if it breaks 1.2000) we'll see but i like to see the market look shockingly awful down for a move up, and vice versa. tells me the pro's are at work.
