Note: The Blue Basketballs show where the GAPS are.
Today's idea is on GAPS......NOT in the traditional overnight or Monday GAPS but GAPS "against" median lines/parallel lines/Up Trend Lines/Down Trend Lines/Center line's,A/R lines etc. If you look at the purple rectangles on the charts they where all pre-empted by GAPS to one or more of Andrews lines and in many cases there where multiple gaps clustering before the move. The idea is that the Bulls or Bears have exhausted their attempts to reach the Andrews Line and a BIG move in the opposite direction is imminent. Keep this little GEM in your trading tool box.
Sincerely,
TIK
Comments
UrbiGT
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Nice one!
IvanLabrie
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Spot on, shame that the stop was a hair too tight.
Timing_is_key
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You win some, you lose some:( alway a trade off with RR )
IvanLabrie
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Yes, this, many people don't understand...most I'd say.
Timing_is_key
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It's the number one reason most lose....You need to have an expectancy of the trade in order to workout your R...This is where leading indicators like TAM and forks/median line are so powerful....you have a TRUE target with probabilities to back you up. Sadly most keep on taking sub 1:1 trades and wonder why they can't grow their account or worse blow their account....The next step after you determine what your average R is to align your RR Ratio into a compounding mechanism so you can safely increase your position sizing. Funny enough ES was using the same method as me to increase position sizing......That was too freaky!
IvanLabrie
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hehe, great minds think alike.
I try to add to winning trades, that's a big one too.
Cheers!
Timing_is_key
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Yes...forgot that one... andrews used to add to his posirions once they passed certain milestones....hoping to uncover them soon