Hi all-
This week's experience with range trading brought up a few questions I hadn't considered. Here's how I dealt with them:
Question - What happens if the range is less than 100 pips when you wake up ((like it was Thursday AM)?
Answer - Wait for at least a 120-pip range to emerge before calculating any entries/exits. Check back at 10AM.
Question - What happens if you get stopped out on one or more positions? Dealing with a limit of 2 lots max.
Answer - Don't take any more trades that day. Wait for a new range to establish itself the next morning.
Question - What happens if EUR/USD is close to the high (or the low) of the day when you calculate the ranges?
Answer - This might be a trending day, so step back and look at the large time frames. If you suspect a strong trend is in place, don't trade. Otherwise, wait for a 30% range pullback off the high, then add 50 pips and that's your sell signal. In other words, sell above the market or buy below the market.
Never enter close to the high (or low) of the day, since a pullback is likely. Instead, wait for a retracement. Don't take any position that attempts to pick a high or low. Wait for a pullback, you will most likely get it.
Good trading all.
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Good Morning TXCMON
ReplyDeleteSince you seem to have a handleon how Zulu works out the ranking on providers, maybe you can explain to me how "pipedfx" who coould NOT TRADE much less trade is way out of a wet papaer bag in up in the # 1 spot and than a fall all the way to # 2001 spot ,like he never belong at #1 ,but stillcan not see how Zulu put him therefor over 4 weeks.
Thanks