Quote:
|
Originally Posted by wolfe
aXXo,
Sounds like a great idea. You ask the age old question, when to enter and when to exit. I believe the key is more the exit, and how to "manage" a trade gone bad, rather than taking a beating with continual stop losses. What are your ideas?
|
I agree most of us are having problems with exit more than the entry, not only on bad trades but also on profitable trades, too soon or too late that’s the problem.
I am having less problems trading at higher times, I use the 4H chart for entry and exit while using the daily, weekly and monthly charts to decide the trade direction.
Some of the exit points and entry points I use is my trades, are Fibonacci Levels to find possible turning points, my favorite level is 61.8 , monthly and weekly support and resistance to find my targets. Divergence on Daily and weekly charts for entry, I use RSI to confirm the entry and MACD to confirm the trend direction.
I would suggest to enter the trade using small time frames and decide the exit rules from the higher time frames