shellsnail wrote:Hi bob,

have a quick question.

You mention that you use the 240MA as stop-loss - in that case how do you decide to cut your losses if things do not play out? In other words, what is your exit strategy besides SL when price goes against you.

Thanks a million.

nanningbob wrote:

shellsnail wrote:Hi bob,

have a quick question.

You mention that you use the 240MA as stop-loss - in that case how do you decide to cut your losses if things do not play out? In other words, what is your exit strategy besides SL when price goes against you.

Thanks a million.

240 is my maximum. I often close before that. I often wondered why or how I decided that and it came to the feeling I got from price action. In other words, "that trade just aint going to go" or "guess I need some patience with that one". How did I do that or come to that decision. I notice at some point price just wasnt going to trend anymore and I would close out. That finally let me to the 60MA. I now have a definite place I probably will deal with a losing trade. Once Price touches the 60 I know I need to close out or better yet find my best exit for the minimum loss/profit. So I may place 2nd trade so I can BE faster, I may just close it, or I may ride it back to a small profit/loss. It comes down to each individual trade as to what I will do. But now I have a clearer place I need to close out where before it was just experience (which was not always right).

So if it is a trend trade hit the 60 look for close or close out. Break out into a trend (crossing the 60/240) Do I need to close out or play the retest of the 240/60. These are all individual choices made in trading. Sometimes I get it right, sometimes I dont.

shellsnail wrote:Bob,

from your experience, do you notice a lot of false entries, especially on the 1H chart where price seems to cross over the 20 or 80 Stoch, go over a DO, 0.500 or 0.00 line and then only to reverse later on in that candle?

Do these entries typically work out later on because they are not visible via backtest/simple scan of the chart because the STO only prints after candle is closed.

reason being, I traded this for a while and I noticed that I was getting some of these entries.

Also, a follow up would be, when this happens, do you suggest that the trade be closed immediately?

Thanks.

Edit: May I make a simple suggestion to remedy this problem. In general, I think when divergence presents on the 4H, it's not a good idea to take the 1H signals anymore. This is especially the case after a long run up and then a 4H retracement, followed by another up push - all staying above 60 and 240MA.

nanningbob wrote: Eur/Chf follow each other around like Mutt and Jeff and AUD/NZD also follow each other around with the AUD taking the lead, except the last several weeks.

art wrote:i still have about 13 charts not showing the 240 MA on the 4 Hour, so some of the dummy lights are not right, done the usual closed platform, got rid of chart history, very strange