Thursday, November 6, 2014
Wednesday, November 5, 2014
Things to remember
For engulfing, the opening and closing should be close to highest and lowest price.
For pin, the tail should be around 3 times longer than its body. Regarding its Stop Loss, set it around 3/4 of the tail.
From the 'Trading in the Zone' book
Compare :
Person with very good analysis skill and knowledge, but poor control over emotions.
Person with basic and amateur trading skills, but good emotional control and stability.
The latter is better.
Bad memory is like an energy.
Like if you got bitten by a dog before, it will trigger the energy in your brain if you meet one in future.
Use this same principle in trading.
You lost before, and it will sometimes be triggered.
But it is only an energy, and don't let it undermine you strategy.
The whole book is saying for trading, it is all about managing yourself.
You can do well with just any normal strategy.
Many people make the mistake of looking for other strategies when they lose.
Or studying more to try to win.
Actually, it is a lot about being able to handle yourself.
For pin, the tail should be around 3 times longer than its body. Regarding its Stop Loss, set it around 3/4 of the tail.
From the 'Trading in the Zone' book
Compare :
Person with very good analysis skill and knowledge, but poor control over emotions.
Person with basic and amateur trading skills, but good emotional control and stability.
The latter is better.
Bad memory is like an energy.
Like if you got bitten by a dog before, it will trigger the energy in your brain if you meet one in future.
Use this same principle in trading.
You lost before, and it will sometimes be triggered.
But it is only an energy, and don't let it undermine you strategy.
The whole book is saying for trading, it is all about managing yourself.
You can do well with just any normal strategy.
Many people make the mistake of looking for other strategies when they lose.
Or studying more to try to win.
Actually, it is a lot about being able to handle yourself.
1182 - how can I improve from my previous lost?
One of the thing I could do better is play even more defensively.
How?
Consider setting the stop loss even higher up.
One of the reason is that it is taught to the increasing population of price action trades. It was advised to them to place the stop loss around 3/4 of the tail. So the first reason is crowded mentality, that will be moving the price. When price goes pass 3/4 of the tail, very likely this huge crowd of traders will exit at the same time, pushing the price pass the tail of the pin.
The other reason is that a pin is supposed to be a very strong indicator of the price moving away from it.
But if price still comes back close to it, maybe the pin has become invalid.
How?
Consider setting the stop loss even higher up.
One of the reason is that it is taught to the increasing population of price action trades. It was advised to them to place the stop loss around 3/4 of the tail. So the first reason is crowded mentality, that will be moving the price. When price goes pass 3/4 of the tail, very likely this huge crowd of traders will exit at the same time, pushing the price pass the tail of the pin.
The other reason is that a pin is supposed to be a very strong indicator of the price moving away from it.
But if price still comes back close to it, maybe the pin has become invalid.
1182 - don't understand, but just follow
I went to read about pin bars.
It is supposed to be small body, big tail.
The tail should be 3 times longer than the body.
Apparently, the above does not qualify.
And I seriously do not understand the logic.
Isn't it an even better version of pin?
Not only does it form a pin, it continues to surge higher, forming a larger body.
But why is still a pin better?
Haha, I do not understand.
But at least I learnt not to go against it.
Apparently, but don't understand.
Here is something to cheer me up.
Tuesday, November 4, 2014
1299 - Quick follow up from previous post
I decided against the NZD/USD long trade.
Reason :
The engulfing pattern is pretty short and insignificant.
I rather see a longer red candle, followed by an even longer green one.
Another thing is that the tail, I like it to be even more trimmed.
The body of the green engulfing candle should be more full.
Reason :
The engulfing pattern is pretty short and insignificant.
I rather see a longer red candle, followed by an even longer green one.
Another thing is that the tail, I like it to be even more trimmed.
The body of the green engulfing candle should be more full.
1300 - Some action in Daily Charts
Bullish engulfing.
But the previous support is quite close.
It is a good sign, which I am also long, in 4 hour charts.
So most like I will skip this one.
This one has a bullish pin, but the pin is short, and it is not green.
The engulfing is also not a really fimilar one.
Engulfing to me, seem more like a full red candle, followed by a full green one to counter it.
I prefer the NZD/USD to this one.
1305 - after the calm, a delimma
When you won some money, you have the fear of losing it.
Today I had some doubts about the below.
Ok, here is the question.
Is the above a pin?
My impression of a pin is a candle with short body and long tail.
But the above has quite a long body and a long tail.
But isn't the above even better than pin?
Reason being it has not only rejected the support and form a long tail.
It has also have enough momentum to produce a strong green body.
That is the main reason I enter the trade.
And I am not really sure if I am correct.
Today I had some doubts about the below.
Ok, here is the question.
Is the above a pin?
My impression of a pin is a candle with short body and long tail.
But the above has quite a long body and a long tail.
But isn't the above even better than pin?
Reason being it has not only rejected the support and form a long tail.
It has also have enough momentum to produce a strong green body.
That is the main reason I enter the trade.
And I am not really sure if I am correct.
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