I am seeing a lot of times where the price goes 5 pips or less above or below the weekly open and then comes back. How can you profit if this happens regularly? How small of a target do you need?
5 pips is plenty of profit. The SL would be moved up to entry +2 or entry +3.
But if you have a 2 pip spread and you got in 1 pip above or below the weekly open, that means the maximum profit would be 2 pips when price crosses the line by only 5. How would you know to close at +2 pips before it comes back and hits your stop? Plus there are all the other times that it crosses the weekly open by even less than 5 pips.
How big is the stop loss supposed to be immediately after entry?
newbietrader:
But if you have a 2 pip spread and you got in 1 pip above or below the weekly open, that means the maximum profit would be 2 pips when price crosses the line by only 5. How would you know to close at +2 pips before it comes back and hits your stop? Plus there are all the other times that it crosses the weekly open by even less than 5 pips.
How big is the stop loss supposed to be immediately after entry?
xtraction posted a stop loss formula earlier in the thread.
The short was at the weekly open.
Another short at the weekly open.
And another short. Almost like dominoes.
There was a long at the weekly open.
system
February 23, 2010, 5:03pm
580
In the past, I’ve see weekly opens hold as support/resistance as well as price levels to enter with the direction of the market movement.
How do you when the market hits that level which direction to pick?
marsalis:
In the past, I’ve see weekly opens hold as support/resistance as well as price levels to enter with the direction of the market movement.
How do you when the market hits that level which direction to pick?
Price rising to weekly open is a long. Price dropping to weekly open is a short.
Do you only look at the 1hour chart when trading the weekly open? How much drawdown do you normally experience before profit? And what is your initial max stop loss?
xtraction:
Glad to have “sparked your interest”. Calling this thread “fascinating” may be pouring it on a little thick. Nothing ground breaking here. The fascinating part to me is that the majority of traders are not trading in a similar fashion. Instead they are like dogs chasing whatever car happens to drive by next. But as I posted elsewhere, they can’t help themselves because their brains are wired to respond that way and they do not know it.
You can trade the weekly open whenever the price crosses over in the direction of the daily flow. There are always exceptions to that rule but better to pass on those for now. The majority of my trades are long but there are times when I can plainly see going short will most likely result in a profitable exit.
In case you did not read my warning about trading the weekly open - it is extremely boring. There are no cool indicators to look at. You may only get one or two trades per week per pair. Sometimes, you do not get a trade. The upside is, you can make a modest profit most of the time and, on occasion, you can make a killing. [B]If you risk 2% on your trade, use a 10 pip stop loss and have proper position size, a hundred pip win is a 20% return on your account.[/B] One or 2 trades like that a month and your membership in the 5% club of successful traders is a “lock”.
May I suggest you read this thread from page 1.
