Ok, on with that chart.
We were supposed to enter short (always short on an evening star pattern - thats the way it is traded), at the lower KC band. But we are already above that band making for an even better short.
The question is......should we wait for an even better entry?
Well, my experience is..........that no sooner do you get greedy and start waiting ......suddenly the price plummets downwards and you are left in the lurch. You are now some 5/6 pips down and .....oh, if only, if only
You must stick by the rules : in this case entry is at the lower KC band. If you in a better position than this then
enter now! Do not wait.. Count yourself fortunate - a bonus.
Next 5 min chart with notes below >>>
By
tymen1 at 2008-03-27
We entered
short immediately at 34. The price indeed rose a little and by waiting we could have entered short at 39. But the rules say to enter at the lower KC band - that means immediately on this chart.
Because this prediction method with 5 min charts works accurately, we have absolutely no guarantee that the price will go any higher - and in most cases it drops sharply to our horror.
A scalp in this case, therefore, from 34 to 16 (on the chart) is 18 pips. I usually go for 10 at high leverage.
END OF EXAMPLE