I mean you can use X,A,B, C as reference points , then how do you know where is the D before the chart comes out ?
Does the D point position affects the prediction of the next trend ?
Alexander_Nikitin
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@Frankco, The D point is predicted as 0.786XC. I don't predict the movement towards the D point. I don't know if price ever goes there and what is the exact probability of price to reach the D point. But... IF price goes to the D-point THEN I know the exact probability of it to hit the targets. If I don't know the probability of the setup or the probability is not of my taste then I just stay away.
Frankco
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@Alexander_Nikitin, thank you for your time to answer me first. Interesting, did you test out the number from many trades or it is set as a default? (0.786*C )
I like that you say if it is not your taste, you stay away. it means you really know what you are talking about.
May I ask you for a link for showing me a case which has a D point reached the price? Thank you.
Alexander_Nikitin
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@Frankco, I don't know if it reaches price. I don't trade towards D. I expect a reversal at D and place limit order there
Frankco
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@Alexander_Nikitin, Thank you Alexander,I understand you don't trade towards D. I am looking forward to seeing a reversal set up at D.
Alexander_Nikitin
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@Frankco, The reversal is predicted as 0.786XA. Limit order at this level. And then it either goes to stop or to targets...
Frankco
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@Alexander_Nikitin, Thanks~I went though some of your trades, I see what you mean. :) Thank you for teaching.
tradie
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Everytime when the stop is reached you are losing money. So how often do you trade the same valid pattern?
Alexander_Nikitin
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@tradie, I never lose money because I accept the risk of the trade before I enter. Look how it is done: I decide to invest in the patter to see if it will work or not. Starting from the moment I made the decision I treat myself as already paid the investment to the market. So, when the market hits the stoploss I lose nothing and when the market hits takeprofit I have a return on my investment.
Having this time of mentality I take every pattern that meets my criteria.
tradie
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@Alexander_Nikitin, thanks for clarification. So I placed a limit order at D point set the stop over X and tp at the first target. Then I placed another limit order - entry and sl is the first target and tp the second target. Or I would only place one trade till it reached the first target then I would close half of the position and breakeven to reach target 2. But if you don't have the chance to do it manually I would prefer the first setup. What do you think?
Does the D point position affects the prediction of the next trend ?