indeed I should probably say dear reader, having seen the number of followers, but I don't feel worried. I always advocate starting small to grow fast *blink*
Today I want to talk about an easy trade when the market is trending: the continuation scalp after a correction.
Let's focus on a few key words:
- First and foremost: Continuation. I trade in the direction of the trend in place
- Correction. A correction is a short-lived movement against the direction of the main trend. A correction may reverse a trend but, believe me, most of the case, correction are indeed good chances to enter the market in the direction of the previous trend
Have a look at bars 1 and 2. After the initial "explosion" with big green bars, the trend looks like taking a breath, with two doji candles, i.e. small candles where the opening is at the same level of the close. Our two doji friends are not of the out most quality (a specific topic on the dojis setup will follow in the next days, for the time being, take my words for granted). When the market broke up the top of the 1 and 2, I entered with a market order and took my chunk of profits in this bull leg.
I am sure some of you are now asking: "Why you did not the long trade by the same token with candles 5 and 6".
Good question, complex answer.
The basic reason is that my feeling was the market was topping, because of three different attempts he made to break previous top.
As you see, interpretation of the market is key and there are no bullet-proof rules and guidelines (if there were, we all were Warren Buffet). In doubt, I prefer to refrain my greed and force myself to out of the market.
In this particular circumstance, I was right and indeed the market topped-out and then fell for a bit (and I took another small profit on the downpath, but this is not a double doji setup)
Enough for now. Stay tuned for more on this setup in the next day or even before.
DISCLAIMER
***Please Read Carefully***
This site is for educational and discussion purpose onlyTrading is a risky and hopeless business. Only a tiny minority of traders are successful and the chance to be part of that tiny minority is smaller than the Higgs Boson. Future trading is even more dangerous because of the derivatives leverage (if you are now switching to Wikipedia, chances are this blog is not suggested for you).
Trading, therefore, should be not be approached at all or, if you are so crazy to still be willing to deal with it, you must look for appropriate guidance and tutorship from qualified professionals in your own Country.
The author and all the future contributors make no claim they are those kinds of professional, neither financial experts, nor trading advisors or consultants.
Furthermore, they are probably idiot, surely incompetent and unreliable. In short: they are complete morons, so that reading their crazy posts is a total waste of time.
Even though, from time to time, you might find a good trade on this blog, this is due either to the law of large numbers, unfair luck, damned randomness and indeed current results are not at all a guarantee for future performance.
At the end of the day, every reader is responsible for his own financial decisions and especially to ascertain whether or not the particular types of trading described here are suitable with his lifestyle, his Country's laws and regulations. If they are not, please cease immediately to read this blog.

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