quote:
Originally posted by Duane
Jim, was the .618 retracement premarket a good enough reason for you to get short if it was in accordance with your premiss? What timeframe did you manage the long trade on? I did not carry the full load as long as I would have like to, I manage mostly on the 1min timeframe.
I'll let you answer this one yourself. Remember, the answer to every problem lies within the problem itself. OK, maybe a bit obtuse. You know I wouldn't leave you hanging like that. Do a set based around the data from 15:17 to 15:44 on that 34-tick chart, 'locking' it at the low leading up to that .618. For fun, also add an upper warning line (not a division line, an equally spaced line above the //, the same spacing as between the ML and the //). OK, now, what is the answer to your question? And what about that small ABCD shortly after the opening. Look at that warning line. Interesting, huh?
As far as management, you must have a premise to start with, and then you must have an idea what normal behaviour and price action is for that premise, if it plays out. Recall in
Trade Management I mentioned how I used the layered averages, for example, in a three times the data lower timeframe. I have seen people just apply them on whatever timeframe they want.
The management and the management timeframe are a part of the premise, and they must make technical sense. What are you trying to accomplish? Without that, you can't tailor a method to attempt to accomplish it. Were you playing for the 3-min swing, or to play each leg of this swing on the 1-min? Each has a very different management technique.
Another thing that I see people do is just somewhat randomly choose the traded timeframe. It's
not random, it's decided on by the setup in a very precise manner, and that dictates the management timeframe (and entry timeframe) for me. I explained in
MTAC how I choose the traded timeframe, and I expound upon that in the mentorships because it seems this is still hard for people to grasp. Until all the above is laid out in your premise, the answer can't be determined.
