My answer to Exercise 5:
What's special about candle R - its BIGGG. It has very tiny shadows which shows a weakness in the sellers. It also crosses the middle bb, the middle starc and the upper starc, which is a lot to cross and shows buyers are strong.
Top of candle R does not count as a retracement point as Tymen recommends to wait for 2-3 candles to form that 'walk the upper STARC band' before another amount is opened.
The second candle therefore would have stopped us out of the trade.
The initial entry would hav given us a loss according to where the stoploss was placed... BUT.. looking at Tymens 2 previous lessons, he shows that the the initial entry is closed as soon as it reaches -10pips, even if another amount is opened at the retrace point. I personally would have lost the whole amount (up to the stoploss) as I am still using Tymens previous MM strategy without the '-10pip -first-entry-stoploss'. Maybe this is what Tymen will talk about next.
Last edited by sinn1; 06-11-2008 at 02:22 PM.
|