Dear Aw10,
How are you?? Really need Help from U & seniors regaring my trading style. From the past few months i have been trading using some strategies & mostly taking the trades by guessing the Market. But the market is telling me I am WRONG most of the times..
See for example, if a script performed NR7 on a patricular day, i am entering immediately when previous day high is taken, but after few min Stoploss is being hit
& the script is going in the reverse direction. The worst part is, i am not entering ino the reverse trade because of the fear that it will hit my stoploss again.. Please provide me a solutoin for this kind of psychology..
Awaiting ur reply.. Take care,
regards,
Phanindra.Y
See for example, if a script performed NR7 on a patricular day, i am entering immediately when previous day high is taken, but after few min Stoploss is being hit & the script is going in the reverse direction. The worst part is, i am not entering ino the reverse trade because of the fear that it will hit my stoploss again.. Please provide me a solutoin for this kind of psychology..
Are you trading intraday TF or daily TF ? Have u tried chaning your entry ? If trading intraday, instead of jumping immediately, on the break of NR day's range, why don't wait for mkt to digest that break and enter after it settles down. Show patience and delay your entry ?
Phanindra, you need to try out different approach, if you want different results.. otherwise, same action will produce same results.
Before trying this out in market with real money, please backtest them and see for yourself if they work or not..
What I described here is that it is not a full trading system or strategy.. but a setup. You got to find out your own way of trading it. Greece or any other news is just a trigger that gives push to price action otherwise, market reacts to its own resistance and support levels. The news will just make the move fast otherwise, it will take its own time.
I have given some link to my posts at the start of this thread.. in those posts I have mentioned about what to look for in successful breakout and false breakout.
That was as per my experience. Ofcourse - you are free to experience it yourself or encash on my experience and see if it helps.
You don't have to know the direction of breakout. Wait for market to tell u that..and just go with the market. You can define your own rules to read the market and identify whether it is valid or invalid breakout and trade that. Due to gap, quite possible most of the potential move possible in one day is already over.. So if that is the case, then forget it and wait for other system to give u entry. but if your trading TF is > 1 day, then you can still encash on break of NR range.
Say 1 day ATR is 100 points. i.e. u might expect tomorrow's bar to have a range of 100 poitns. Now if it gaps down by 75 points and then stuck in narrow range there.. then where is the opportuinty. If your system says that we might go for gap fill or there is bullish signal developing, then u can trade for POTENTIAL 100 points opportunity.. But that all is upto you system.
NR7 just tells that tomorrow's bar has very high probablity of being BIG bar.. so you should be prepared to encash such opporunity. No system is 100% perfect.. and so is NR7. There is no gurantee that tomorrow can't be another NR bar.
Happy Trading.
