The worst possible price action is the slow grind. BW is more treacherous, but a cautious trader probably wouldn't have a position. In a grind, there is a good chance you do have a position and the price simply takes forever to move.
The fL2 at b35 setup a buy and many traders did not get filled on their +2 exit until b53, and if they held that long. If your charts are set to autoscale, the small bars may appear huge and give the impression of a large move against you. It is best to
The best way to trade a grind is to avoid trading it. Traders who correctly read b13 as a 1Rev got their 4 points and could choose to cease trading but anyone else had to sit through the grind. Some traders double their position and cut their targets when they see weak price action. This is usually a dangerous move since by the time the grind is apparent, adding on further may not produce rewards proportional to the added risk. The simplest thing to do is to cut your target and take a smaller winner.
Happy New Year Cadaver. What about viewing 11,12,13 as ioi? It was also right at the top of the prior days range? Do you use ioi as a signal? Also, did you have any thoughts of 61 being 3rd leg of W with 62 as SB? Thanks again for all you provide for us in this fantastic blog.
ReplyDeleteDan, b11,12,13 probably is an ioi and those work like a reversal signal. I did not notice it in this chart.
ReplyDeleteChannels are usually structured like W and this one may be seen as a W with three smaller channels each being a W. Its very hard to pick any given bar as a reversal signal since channels often go forever.
Is bar 5 a 1pb setup? If not what would be your reasons for avoiding the trade.
ReplyDeleteThanks
Omar