Sir,
I m posting the chart of ALMUNIUM WEEKLY MCX,I went through your very thread.
Your valuable comments are needed ,so that,I can be sure of my analysis for the chart.
1.At bar "A" one can add 50% of the quantity.Because trendline "BLUE" has been broken.
2.At bar "B" one can add another 50%,but ,it is iffy so one should wait.
3.At bar "C" one has stopped out of the trade taken at bar "A" and even one has taken trade at bar "B"
4.At bar "D" one can buy 50% as the trendline "GREEN" has been taken out.
5.At bar "E" one can add another 50% as the previous pivot high has been taken out.
Sir ,is this the right way to catch the change of trend?
with regards,
manik
Hi Manik,
Let us take a look at the chart you posted........Forget trendlines for now.Just have a look at the chart and go with what is obvious to your eye.
Look at the pivots.........If no idea what they are,or at least what I mean,do go back to the initial posts and take a look.
What do we see?A whole lot of lower pivot highs and lows.......no buys at A.Why?Coz we are in a downtrend.....buying would be committing the heinous crime of Anticipation,Guessing,Predicting,
No buys at B either......Same as above.No change in pivot,no buys.
C forms new lows.........sticking to the Plan saves us the heartache of sitting through the move if entered at A and B.
Where do you enter?We have been tracking and tracking,waiting and watching..........we have thus far refused to get into the trade,simply because we don't buy downtrends,we buy declines in uptrends,and we buy when pivots change and signal a possible change in trend.
Have a look at D.........That area,we finally get that higher pivot low that we have been waiting for........Do we buy?Nope,but we are now in "get set" mode,waiting to pounce.Where do we enter?Over the high of D
Then trail stop upwards........once you got the breakout,you could add over the high of that candle and so on.....
All the best!
Saint
