Quote:
Originally Posted by professorx
Lessons:
1. Do not trade while doing accounting homework. You will miss many signals.
2. If you are placing buy orders above the high in anticipation of a breakout, do so several pips above the high, maybe even 10 pips above the high. You will still have 10's of pips to make above that level and it's safer.
3. If you have the time and you are up all hours of the night, watch and wait for an actual CLOSE above the high to confirm a breakout; then buy at market.
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Someone had a question that the mods deleted and it went something like this, "What timeframe should I use when determining a close above the high?" And I think I found a good answer to that question in this book I just finished:
"Your trading methodolgy can be in any time frame that suits you, but all your entry and exits signals have to be based in the same time frame. For example, if you use variables that identify a particular support and resistance pattern on a 30-minute bar chart, then your risk and profit objective calculations also have to be determined in a 30-minute time frame."
I think this is basically how I answered the question before the posts were deleted, but finding the explination in this book motivated me to post it again.