Impossible to call the market at open, so will just leave it all alone as far as opening/closing/placing stops etc are concerned.
In about 5 to 6 hrs London will come alive and we can see then.
But I’d rather just leave everything alone.
When you look at any long term trend, there are up days and down days.
You have to allow trades to mature and become established.
If the trade has legs, we will soon see.
This morning’s open saw the account drop by 15 pips, but that looks to be in the process of reversing now.
Will come back in a few hours to review.
AEDST 10.30 pm Review:
There has been a lot of rise and fall in our overall positions today.
AUDJPY has moved against us by 23 pips at time of writing.
Really? 23 pips in 2 trading days? Hardly a reason to panic.
Now - please pause a moment to consider the difficulty traders are faced with in this pair if trading the lower TF - 1H and lower. The range top to bottom is 23 pips … so to us following the Daily TF, it’s something to ignore just now.
I wish I could tell the market what to do, but not going to happen, so we just trade what we see, and don’t become unsettled by what is happening in other TF.
Our “basket” of pairs has moved from +30 to minus 60 today - mostly when I was not watching.And it will continue to do that until we see our new candle in about 10 hrs time.
That;s another day and we will make decisions based on what we see at that time - not halfway through the trading day.
Turn off your computer until the new candle appears.
Additional Important information:
We are getting to the stage where some of our trades may begin to run in our favour.
And … some will continue their whipsaw activity.
But we have not really discussed an exit strategy.
And we have not discussed why the Heiken Ashi candles charts form a part of the strategy.
Here’s the deal:
I do not use the HA charts to form the basis of my entries, but I do use the HA to ASSIST with EXITS.
I’ll tell you about the other exit strategies after this point with HA exits is explained.
I prefer to watch the COLOUR of the HA candles. Reason: they are GREAT for keeping us in a trend.
So what happens when the trend flattens and ends or even reverses?
We see a change of colour in the HA candles.
For that change of colour to be a legitimate EXIT signal, it has to remain that colour AFTER the close of the candle. This saves us more losses than we may have already sustained if we have been looking at other indicators .Chances are the MACD has already shown us that the momentum has slowed or flattened, and the Stochastic_RSI may have already have turned up or down to signal the end of the trend.
But unless the Stoch_RSI has already crossed the mid-point (50) we may not still have an exit signal.
That is why I use indicators that operate on different settings - we capture more information, and that can get us out of trades, or help us with trade decisions that we might be struggling with mentally.
Even the ADX indicator might be showing that trend has changed, BUT … it only takes ONE large candle to influence the ADX, and it takes between 4 and 8 candles to move some of our other ones.
Try to visually look back over charts to see where this has been true, and for you to get a feel for the signals given by the change of colour of the HA candles.
Hint: In case some may not know, you can roll your charts back a couple of months, and then advance them one candle at a time using the F12 key on your computer keyboard.
Other EXIT strategies:
- MA’s cross in the other direction and the candle closes with it in that position.
Be careful here because in a ranging /whipsaw market, you may choose to continue on with the trade, despite the loss situation. A MA cross is not always the best exit strategy, but it will do in a pinch.
- Look at all indicators:
- MACD may be crossing its midline
- Stoch_RSI may also be crossing its midline
- ADX may be gaining strength in the opposite trend.
- The trade may have passed your point of tolerance for a loss.
Out of all of these, the HA candle colour change is still the earliest.
Your decision to continue or close out, may depend on how you read the other indicators, after all, they are also there to do a job.
I aim to show you what I will do when the time comes.
But like you I have my weaknesses, and will not get the mind of the market right many times at all.
So we depend on an indicator to help us out.