Quote:
| Originally Posted by SeekingLight  Hi cesarnc, I don't. I'm actually really curious about the questions. So far neither you nor luqmanz really answered them(although luq answered/gave a suggestion for the "what does it mean" part, thanks! =) ). There's a reason I asked them because even though sure I can project targets around into space(high-low-point of wedge/triangle, projected from possible break area), I was wondering what the point of the info was if there is no setup attached to it. No setup = no trade. ... SeekingLight |
Let me share with you how I use this info (triangles/wedges) in my trading.
At that time, I had a long position at 1.3600. Price looked strong to me so I think "hey the price looks so positive, why not take a little more risk, triangles is a trend- continuation formation anyway". I followed the age-old wisdom "never average down, just average up".
Worst case scenario, price touches 3700 and reversed.
Stop loss at 3650 for all position.
Long @ 3600 = 50 pips
Long @ 3700 = -50 pips
Net 0 pips for the risk taken. (Good bargain).
I placed a buy order at 1.3700.
Price went up to 1.3718. Stop loss moved to 1.3668 (50 pips trailing stop).
Price retraced. Stop loss got hit.
1) Position 1 @ 1.3600 = 68 pips profits
2) Position 2 @ 1.3700 = -32 pips
Net profit 36 pips.
If I dont have a position at 1.3600, I wouldn't take the 3700 trade. I'll wait till price close higher than 3700 on Friday.
Hope this helps. :-)
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