I've been considering doing one target and just trailing the stop a bit. The problem I have with 2 targets is I'm risking 30 ticks on the first target that will only give me 8.
I took two trades today. One was a reversal bar and I stopped out. Figures my first trade with real money would be one that stops out. From now on I don't plan to take reversal bars. There are enough setups with inside & outside.
Took an inside bar that was also reversal bar (there were 3 reversal bars in a row so that was pretty good setup) and got +8 + 24.
-$380 total for me
Can you help answer these questions from other members on futures io?
the way I see it, the first trade does not qualify as a valid reversal bar. you would need a bearish reversal bar after a move up. (open and close on the lower end of a red candle) the first trade would have been the big red candle (outside bar). that is a perfect setup and a winner as well.
The following 3 users say Thank You to Silvester17 for this post:
Some traders are NOT interperting the reversal bar correctly..........(see post #1)
First off.........the magenta bar on the reversals V6 indicator should be called something like..."WICK SIZE MEASURE" A magenta bar is NOT a trade signal !!!! It is just ONE of three criteria that must be met to constitute a reversal.
So.....let's define a reversal bar again........
#1 IT MUST COME AT THE END OF A MOVE (UP OR DOWN)
#2 IT MUST HAVE HIGHER VOLUME
#3 THE WICK MUST BE 2/3+- OF THE ENTIRE CANDLE
Just two trades this morning +33
Jeff
The following 10 users say Thank You to Jeff Castille for this post:
You're right. I was trading off a chart that had OHLC bars and it wasn't as obvious as a big green candle that it wasn't reversal. Thanks. I also missed the outside bar cause I was in an ES trade.
Here's a good example of a reversal bar..........at the end of a down move we get a bar that exhibits the proper characteristics (2/3 +- bar for lower wick) on higher volume (higher volume relative to surrounding bars)
The following 2 users say Thank You to Jeff Castille for this post:
Thanks for pointing out my reversal bar error (you & silvester). Without that I would have made money. A very costly mistake. I'm going to pay more attention tomorrow.
The shPriceActionHero draws the lines in real time but work best OnBarClose. I'm still trying to decide the best way to use it. I like your addition of volume in the mix.