From the school, I was going over the “design your trade system in six steps” in the college section, and step five was along the lines of “define your entry & exit”. So my question is : Could I use the lessons in elementary school on support and resistance, more specifically “the bounce” and “the break” as definitive enough to satisfy step 5 in creating a trading system?
I [I]think[/I] you’d probably want to define them more accurately than just that, with some precise “selection filters”.
You’ll probably have a clearer idea when you’ve taken all the school lessons-I recommend doing all the quizzes so you can see how much you really understand each lesson
Thanks for the advice. Instead of picking your brain on the topic of “selection filters”, I’ll browse around on the subject. Thanks again
I filter my entry points according to my technical knowledge only; yes technical tolls are main weapon here! I need to use few default and custom trading tools in my live trading chart! If I don’t get combo setup, then I don’t open any new trade position; and I always follow my trading rules so honestly! I hardly believe, self-discipline is very important qualification here!
Ok this is my line of thinking too. Before I enter a trade, I define my point of validation ( where price action’s movement confirms my idea. And my point of invalidation, my stop loss, where price action proves my idea to be wrong. Do I need more rules than that? Am I not trading the SAME way with the same tools on EVERY trade?
I don’t - for initial SL-placement, anyway. I do exactly the same as you: put my SL where the price reaching it would invalidate my reason for being in the trade in the first place.