Looks like EURAUD trade got triggered, the final target is approx 500 pips on this chart. I prefer closing at the horizontal line cut vertical line, since this pair still got steam to rally upwards. Are these real trades or just experimenting?
The entry is 50% of the distance in the TL. In this case because it is a short entry, it would be 50% distance from the peak to the point where the TL is cut by the vertical line. To be honest, I trade mostly with Wolfe Waves and was drawn to this as an alternate system. I have a couple of trades that should be closing soon (probably today/tomorrow). You can follow on that. I think the weakness in this system is in identifying the right peak (most losing trades are caused because price moves back up again. Ex: today's AUDJPY). This method is still a work-in-progress. Using HA candles does help a bit.. will be posting more ideas using this method so you can see for yourself.
Sure no problem.. Yes, break of TL is ideal.. but that would offset the RR ratio. Ideally, taking a position after a candle opens below the entry line (1.41894) should help. But, being on the safe side, the break of the TL is also not that bad for trade entry. In this case, i'd prefer to see a higher RR (atleast 1.5 and more).
Hey skmr... In all honesty, I deviated from this method (got carried away by using Fibs instead) and got a bit burnt during last month. So i'm back to the drawing board, albeit using Heiken Ashi. These candles tend to give a better picture of trends (which is what we are after). While it does work quite good, the problem i'm trying to figure out is 'HOW & WHEN' to get into the trade.
I have quite a few trades planned out, so let's see how they figure.