Thursday 2 July 2015
020715 Defining RRR
Okay another pretty good read. Two levels triggered but because they were so wide they were hard pushed to meet their profit objectives. Just the way it goes sometimes I think but asks the question what do you do, hold over night? or close at end of day? guess tomorrow will answer my question.
The only other thing worth mentioning was how to correctly measure potential RRR which is as follows and in in Seiden's own words...
"Only trade opportunities that offer at least a 3:1 profit zone to the first target....
1) Identify the nearest demand level below current price.
2) Identify the nearest supply level above current price.
3) Measure the distance between the demand and supply level and determine whether or not there is a desirable profit margin (3:1)"
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If you are going to continue to trade this way, I think you should play around in this site: http://www.readthemarket.com/ . Not sure if I already sent it to you, but if so, its worth another look. The most important thing to understand, and, for its worth, is how I base ALL of my trading, is first the idea of the FTR (I call them LRL/LRH - Last Reaction High/Low) and the Engulf (LRL/LRH Break)[http://www.readthemarket.com/index.php/forum/homework-rooms/1953-engulf-or-a-fakeout].
ReplyDeleteAnyway, hope all is well -
Thanks John, no haven't received this link before, amazing thanks very much will get on with it. Hope things are good your end too.
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