Pipsquito was doing multiple units and had THTM and had way exceeded safe margin. You have to figure that at any given time GJ can easily fall 700-1000 pips. Part of what I do is get in with higher losing longs and hold them for interest. Then I scalp in range and do best when we are rangebound,
or after a quick run down and a long run back up.
I use support and resistance, psychological numbers, I casuyally monitor GU and UJ and anything related to any of these three pairs. I use PSAR and dojis to show me reversals. I am always trying to sell off longs for small profits and rebuy long lower when I am sitting here and see the market turning.
I use RSI and momentum. Stochastic RSI, several fast and slower stochastics with LT and ST settings. I also like the stochastic momentum
give me a nive momentum wave.
I am not sure how I see these levels, only occasionally do I look at fibinocci,
it is as if I do it in my mind and more heavily rely on sma's and psychological numbers than fib's.
I also am unsure of how I gauge the distance I expect a downward trend to continue before reversing. SOmetimes I even surpsie myself predicting GJ.
AFter years of follwing GJ, you just get a feel for it or something.
The mentality here is different than regular trading. HEre I am counting on 700-1000 pip moves being possible and counting on drawndown.
Obviously the more times price bounces off a level weather high or low the stronger that point is I think. Where the big swings come is with big momentum traders entering the market as they make it move fast and those little traders sitting and watching see the quick movement get a feeling or something then jump suddenly in.
As you bounce off a bottom several times you know it is stronger and spacing then should be like 10 pips. But if it keeps making a little bit lower low. YOu have to scalp them for whatever you canget sell your one long and get in lower each time and sell it agin for whatr you can get and get in lower again. All the while you are slowly building equity.
Quote:
Originally Posted by Andrewunknown
Another question for you that I was thinking of, which is (or would be) probably one of the most frequently asked questions about this method:
After pipsquito's experience a number of pages back, you mentioned in one place that long orders should be distributed between a high and a low, but that the concentration of orders should be bottom-heavy.
This makes good sense, of course, because you're total basis is lower as a result; but it also begs the question:
How do you know where "low" is going to be? "Lower" is easy enough: 204.99 is "lower" than 205.00; but 204.99 isn't low on a decline from 205.50 to 202. If the idea is to buy "low", there has to be some way to gauge the extent of a decline; otherwise one would simply be pulling the old "it just can't go any lower than this" rationalization - which we all know is a load of garbage because any pair, and this one foremost, can do whatever it wants and doesn't respect the losing trader's idea of a "reasonable" move against them. I know you use economic releases - and perhaps SMAs - to get a general idea of where a bottom might be, but what else do you do to ensure the concentration of orders is "low" and not just "lower"?
Btw: be wary of a close on H1 that holds below 204.64.  |
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