We expect, upon a breakout, that price will continue in the main trend direction. We are trading in the direction of the longer term trend. The average true range method is a tried and true technique as well. You can use the low of the entry candle or 1-3 bars back. You can use the hourly chart or the 30 minute chart to trade the break of the daily trend line. $116.64 is the next day and this is the price close 4 hours after market open.Buy stop order is placed and filled the next day. $110.75 is the price in the afternoon where price closes above the trend line.This is a four hour chart and you will notice two price points. The timeframe you will use will depend on your schedule and how often you can check the charts. Using a lower time frame is quite simple. Buy when the previous red candles high is taken out – can consider buy stops however you may not get filled due to a gap.The green candle is the buy candle and there are a few ways to enter the trade. That line is cloned and put on the outside of the candlesticks. The red circle are the high and low of the swing. Over the years, I have gotten away from the traditional drawings and have used this approach. Cloned the trend line and moved it to the outside of the move ensuring it touched price.
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