Retractments

[TTWSX102]

Retractments seem to be the hardest obstacle for me to overcome in trading. How do you tell when a retractment will become a full blown reversal? I set a stop on eur/usd the retractment came within 1 pip of my stop before turning around for a 80 pip gain. Can anyone give me any advice on determining the difference between a retractment a reversal? Your comments would be much appreciated.

[amarnath]

Hi

Technically there are few difference between retracement reversals but before i explain much i like to know on what time frame you are talking about it . If time frame is 1 min sorry i can't answer it simply

[amarnath]

Hi

Sorry forget to added few more questions .

According to you what is retracement in terms of pips time frame what is reversal beacuse 100 pips on weekly is retracement for me but same on daily 1 hr have different meaning so it is better to explain above question before proceeding others opinions

[TTWSX102]

I use 30 min time frames consider a retractment to be 30-40 pips the low anything over thrity pips I start to get nervous start to look for an exit strategy. Am I missing something?

[amarnath]

hi

so do you use 30 pips as stp loss lvl ? getting stopped out commonly? how to do find at given time that low is low of the day?

[MickMason]

Originally posted by TTWSX102
Retractments seem to be the hardest obstacle for me to overcome in trading. How do you tell when a retractment will become a full blown reversal? I set a stop on eur/usd the retractment came within 1 pip of my stop before turning around for a 80 pip gain. Can anyone give me any advice on determining the difference between a retractment a reversal? Your comments would be much appreciated.

$64000 question it's a dilemma for most traders. Support/resistence levels offer a clue fibonacci is helpful momentum overbought/oversold indicators such as RSI....the list of TA indicators is pretty endless. At the end of the day it all boils down to justifiable risk -vs- the possibility of a comparable reward.

If you were within 1pip of a stop on retracement before the trend continued then I'd say you're doing well you can't get much tighter than that!

Out of interest why did you not close or reverse the trade for the retracement re-enter?

Mick

[Jetheat]

Mick
What methods strategies do you trade by?
Do you keep it simple by using tech analysis without many indicators or do you have some sort of secret system?

[MickMason]

Originally posted by Jetheat
Mick
What methods strategies do you trade by?
Do you keep it simple by using tech analysis without many indicators or do you have some sort of secret system?

Hi

No secrets here the more who follow the same signals the more likely it is to move in the desired direction!

In the ranging market of the last few months my strategy has altered significantly a longer term trend trader to a scalper in a lot of respects adapting as market conditions change.

I like simple my 15min bar chart is pretty bare-looking. I look for quick opportunistic trades usually of a few minutes duration exploiting the immediate reaction to things like resistance/support levels fibonacci retracement levels big figures knee-jerk data spikes (trading the retracement) double tops wedges other popular chart patterns that traders trade. I avoid the more obscure indicator signals simply because fewer people trade them. On occasions I'll get on the right side of a larger move clean up but the majority of the time it's around 30/40pips. Stops are fly easy to determine because a realtively small adverse price move makes it so obvious the trade was bad. I use very tight money management risk control rules try never to gamble on an impulse never follow anyone elses recommendations but am always interested in others market view even though I try not to let it influence me.

Heck is that all there is to it? That's worrying it should be a lot more complicated if it were that easy then everyone would be trading fx

How about you what's your system? You don't have to say if you prefer not to.

Mick