05-21-2012, 04:05 PM #401
I will take the short - define the risk with the failed pattern - meaning I will have a stop loss somewhere above the entrance of the long - including my spread - and see if it plays out. I will also go 1/2 my normal exposure to the market and then add a position if the trade goes in my favor. That is how I would play with that scenario.
05-21-2012, 08:27 PM #402
I think one of the problems with trading failed harmonic patterns is how to define the SL.
Also our psyche is not helping here. It is much easier for our psyche to add to the loser than to take SL and revert.
Strict harmonic traders would not trade failed patterns.
But I think the PROs mixed-style traders would do reverse. In one of the webinars Mike Baghdady teaches that PROs use reverse often. Same is the lesson coming from "Zen in the Markets" (short book - but highly recommended).
05-21-2012, 08:35 PM #403
I'm sure you don't usually take all the failed patterns and reverse. You probably pick the pairs that you know the best like the EURUSD and AUDUSD...
05-21-2012, 08:48 PM #404
You are right, Silver. Not often.
05-21-2012, 08:53 PM #405
How's the AUDUSD doing at the beginning of the week? Last week I had some horrible mistakes in my own trading. Learning, learning, learning...
05-21-2012, 09:06 PM #406
I see it like this:
05-21-2012, 09:27 PM #407
I see the nice pattern you've got - so for example that blue top rectangle is your area of either stop loss / reverse pattern?
did you use any software to find the pattern or just found it with your naked eye on the 15min chart?
05-21-2012, 09:40 PM #408
05-22-2012, 10:28 AM #409
looks like it was very good call ->
05-22-2012, 01:06 PM #410
Got my 1 month subscription to Amp Monitor for the EURUSD... Here's what I've seen so far with the help!