NQ1! - Nasdaq Pitchfork Short Example
Just study the chart and you see the process.
The scene of the crime as my mentor always said ;-) is where price broke down hard the first time. Often than not, price has the tendency to come back to these levels. As it did today.
Price ran into the "Scene Of The Crime" or the "KillZone" and got hit on the head several times. Here you had 3 chances to short the market, with a decent stop, giving you a perfect RiskReward trade.
The target was obvious. The centerline.
Price got there to the tick and turned on a dime.
That was a perfect pitchfork trade.
As for a filter I like to use the RSI or even the MAC and/or the AO. What ever makes me feel good for a trade, I'l take it if I have proof that the tool helps me in my trading.
So, go and study the pitchforks, but don't think its easy. It's simple, that's true, but it's never been easy, at least for me.
The most important part in this trade for me was the Stop. The phrase "Never loose money" is kinda dumb. But it carries a truth. By only risking very less, you are never exposed to loos your "soldiers" in a fight/trade.
#cudosToShaneBlankenshipFromLanguageOfMarkets
The scene of the crime as my mentor always said ;-) is where price broke down hard the first time. Often than not, price has the tendency to come back to these levels. As it did today.
Price ran into the "Scene Of The Crime" or the "KillZone" and got hit on the head several times. Here you had 3 chances to short the market, with a decent stop, giving you a perfect RiskReward trade.
The target was obvious. The centerline.
Price got there to the tick and turned on a dime.
That was a perfect pitchfork trade.
As for a filter I like to use the RSI or even the MAC and/or the AO. What ever makes me feel good for a trade, I'l take it if I have proof that the tool helps me in my trading.
So, go and study the pitchforks, but don't think its easy. It's simple, that's true, but it's never been easy, at least for me.
The most important part in this trade for me was the Stop. The phrase "Never loose money" is kinda dumb. But it carries a truth. By only risking very less, you are never exposed to loos your "soldiers" in a fight/trade.
#cudosToShaneBlankenshipFromLanguageOfMarkets
This is how wonderful pitchforks work.
Happy Weekend