PowerTrading/The River - page 30
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
If you are having problems viewing camtasia videos, here is a link that will help
http://download.techsmith.com/tscc/tscc.exe
I agree with pt 100%, the river is a very effective trading strategy, but like any trade it must be filtered by the basics in this order
1. Price Action
2. Support Resistence
3. Fibs
This will explain our entry and exit strategy on this trade. We enter on a River move but we needed to wait until support was broken. As you can see from our target entry we missed by a few pips because we had a falling knife candle at that point. We are now up about 70 pips and you can see the support is my 76.4 Fib area. If we can break the 76.4 and the 2.0300 level we should run for 100 pips. If we come back up through the 61.8 level, that would be an exit for me on this position.
If it was an EA which moves stops to previous fibs level, it would have closed the trade too soon.
Do you close after the candle close over that level?
Also do you use only 1 trade per direction? Like 1 buy at a time.
I've tested your entries - many false signals in the middle of the year. Do you filter entries with something?
If you are having problems viewing camtasia videos, here is a link that will help http://download.techsmith.com/tscc/tscc.exe
Thanks for the info.... It now works....
I agree with pt 100%, the river is a very effective trading strategy, but like any trade it must be filtered by the basics in this order
1. Price Action
2. Support Resistence
3. FibsThis is correct. No cross of any level works without knowledge of basics. The ones listed by XS and I will add trend lines so you can identify those point of S and R.
Another Sell
I am finding it much easier to take a sell position on the cable because we are at a very high price for this pair. I took a short at 2.0380 based on the spike to that point yesterday and my fib levels at the time of the order. I also had suggested I would take a short around the 2.0400 area. I am currently up about 28 pips but it could bounce back up at anytime.
Current
In this current short position we are starting to consolidate around the 50% retracement level. I think it is very likely that if we don't bounce back up from here we will move down a bit more and have consolidation around 61.9 to 76.4 level. I am going to let this position ride unless it backs up and I will take it out with a very small gain.
PT
Good Question
PowerTrader Nice explanation using the system. Since FIB plotting is discretionary, how do you determine where to plot the HI/LO? Did you use the prior session or ????
I will start with the previous high to low or low to high and it can be the previous day or into two days. It can also be a spike. You have to watch price to see where you have consolidation and that will help you plot your fibs. Here is an example above from today.
PT
If it was an EA which moves stops to previous fibs level, it would have closed the trade too soon.
Do you close after the candle close over that level?
Also do you use only 1 trade per direction? Like 1 buy at a time.
I've tested your entries - many false signals in the middle of the year. Do you filter entries with something?Good questions and post.
I always filter this method with the things I always mention. Fibonacci, Price Action, Trend lines, Support and Resistance. That is very simple to say but look at the consolidation in the posts I have made. That is usually at a Fib level or very close and it becomes the basis for the breakout of support or resistance. Lately I have been looking to take sell positions after a bounce upward. Around the 2.0380 level or above. I am making the educated guess that we are not going to go much higher than the levels already established. If you look at the 4 hr chart, you can see we have been making lower highs.
PT
Higher
On the other hand, we should always be prepared for a movement in either direction as we have seen the latest news drive the cable price up and up.
PT