I attached a pic of a nice trade set up on 6B today. I took this trade and actually blew it, didn't stick to my trade plan and tried to get too subjective about how I managed the trade. That being said it's a nice looking setup and a good reminder of sticking to your plan.
Note the highlighted L/H and the fractal breakdown. Then the L/H's which provide great points for resetting your stop.
FYI the error I made on this was deciding not too long after my entry that the trade was struggling to move and I closed it out for +2 ticks. I should have stuck to my game plan, managed my risk and either aimed for my target or a runner.
UPDATE: This trade would've been a total gem. As I look now it would've been good for nearly 80 ticks. I don't take frustration from this, rather I take confidence knowing my setup was spot on and that I just need to make sure I stick to my plan. Good trading to all.
Last edited by Blz17; September 17th, 2009 at 01:08 PM.
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In essence I simply use fractals to identify key points for breakouts/breakdowns and levels to set stops. I re-attached my chart from my prior post. The blue and purple up/down arrows are fractals as defined by a Fractal indicator. I don't need the indicator but it helps to plot some key areas (I attached the indicator and note it's not the bwFractals as that indicator had some issues when Ninja restarts).
The key, imo, for the success of using the fractals for breakouts/breakdown is gauging the overall strength of the prior swing or the situation. For example on my chart where I missed the short the L/H was telling me the market was weak and therefore added validity to the fractal breakdown. If you look to the left side of that chart there are some L/L's marked by purple down fractals but I wouldn't trade those as the preceding action is not very strong to the downside, it's rather choppy and increases the odds of the fractal breakdown being a trap.
I'm more then happy to expand on this. I'm a little tired today so don't even know if I'm making sense right now.
The following user says Thank You to Blz17 for this post:
our dots have nothing to do with fractals these are dots based on some sharky rules the same rules you have been studying from me for months just some all bundled into a indicator that gets close to where i personally like to enter quick scalps...sharky