If you are looking for the big short that 10:1 return this won't work.
Sure it is a great feeling picking those and there is a time and place for everything. In this case I looked for fib patterns. When there was a big run up followed by a 35-40% correction price climbed back close to the top we saw an strong move down with one or two candles. If you drew a trend line and bought on the close of the disrespecting candle with a stop just above the retracement, you would have been in a position to double or triple your risk depending how you exited. In this case after the close of a bullish candle.
You could have used many indicators for an exit, perhaps RSI, Stochastics, etc. what ever your poison.
My point is look for these recurring patterns they don't always pan out but combined with other strategies they can be very good for your account.
Sure it is a great feeling picking those and there is a time and place for everything. In this case I looked for fib patterns. When there was a big run up followed by a 35-40% correction price climbed back close to the top we saw an strong move down with one or two candles. If you drew a trend line and bought on the close of the disrespecting candle with a stop just above the retracement, you would have been in a position to double or triple your risk depending how you exited. In this case after the close of a bullish candle.
You could have used many indicators for an exit, perhaps RSI, Stochastics, etc. what ever your poison.
My point is look for these recurring patterns they don't always pan out but combined with other strategies they can be very good for your account.
Comment:
Could be history will repeat itself on a higher time frame. The first step has been accomplished with a retracement of 43%. Now we watch and see if we get an up move close to the previous high but not eclipsing it. That will be stage two. I will keep you posted.
Educate yourself create a plan and trade your plan. Use other's ideas to validate you plan. Be responsible for your own decision. Know your limit, trade within it.