This thread may seem like a bit of a rookie to you, but the answer to my question is not as simple as many believe. Often, when a strong movement occurs (a major fall or an ascent like a rocket)
This thread may seem like a bit of a rookie to you, but the answer to my question is not as simple as many believe. Often, when a strong movement occurs (a major fall or an ascent like a rocket)
Hello S, corrections are not always proportional according to the time frame you are using. For example, after a 0.5% intraday movement to a new maximum or minimum, the correction can be very different from what you would see after a 2% weekly rise or drop. There are studies circulating on trading against trend, which is not very different from operating corrections. A greeting.
I usually do scalping in USD/JPY and EUR/USD taking advantage of corrections using intraday Fibonacci levels after a great move, along with key levels of support and endurance. They are fast operations, with higher risk than reward, but a very high success rate. I usually have several pending commands ready to activate without having to look at the screen. It�s an easy way to complement my long-term operations as I detest the day trading. EDIT: I just realized the name of the previous user... I didn�t mean to offend you.
Ha ha ha, no problem, buddy.
Exactly! That�s just what I mean. I usually do this by intuition, but I would like to translate it as a set of rules. I do it quite often, especially when I get bored.
You can do manual backtesting of this pretty easy, though it takes your time. The backtest should help you find the optimal levels of stop miss and take profit for each pair, as well as your percentage of hits. If the numbers fit you � and in this type of operation they usually do � then you can move it to real. Yes, you need a broker with low spreads and no exaggerated slides, or it's not worth it. In my experience, the most liquid pairs are the ones that give the best results, for obvious reasons. Stay with the big ones.
The percentage of winning operations is very tempting. The key is timing, volatility... and low spreads, of course!
Another problem would be: How do we know when a strong and fast movement ends? Doji-like candles? Declining volatility? If we could solve that...
You didn�t mention a time frame. In addition, people use terms like �trend�, �correction� or �great movement� so ambiguously that it�s almost useless to try to guess what they mean. Trust in the price. Know yourself.
Right, Seeking. The time frame would be 15 minutes for intraday scalping (I find it the most useful
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