linkon
i appreciate your honest efforts to impart learning - a lot
charts were educational, i don't know what is wrong with me but when it comes to observing divergence, maybe i had tried million indicators before just settling watching price action around ma's.
well, i am keen on looking for what EXIT plans you have in your system to get out of a position.
i have learnt in these 2 years of trading to focus greatly on EXITS as they mark a position as profit & loss. trailing stoplosses are helpful but usually i seek short ma's bubble disappearing in long ma's to EXIT a position i have been sticking to for a while.
which charting software is that ?
regards as always
rishi
i appreciate your honest efforts to impart learning - a lot
charts were educational, i don't know what is wrong with me but when it comes to observing divergence, maybe i had tried million indicators before just settling watching price action around ma's.
well, i am keen on looking for what EXIT plans you have in your system to get out of a position.
i have learnt in these 2 years of trading to focus greatly on EXITS as they mark a position as profit & loss. trailing stoplosses are helpful but usually i seek short ma's bubble disappearing in long ma's to EXIT a position i have been sticking to for a while.
which charting software is that ?
regards as always
rishi
problem with divergence is that people expect every divergence to work. what we compare is basically momentum on price vrs momentum on oscilator. Its not simple as price making lower low oscilator made higher low, so buy...!
when we trade we have to keep in mind that indicators are derived info. one has to read momentum on price first. By that i mean range extension followed by correction and again range extension. We compare this with its equivalent on rsi. basic assumption here is... momentum always precedes action on price.
Exits is very tricky as there is never a trader who has mastered his exits. Thats partly offset with the risk adjustment that we make on a trade by defining the stoploss and then partial exits / add ons depending on how we feel the current price action appears to us. This is where it gets very subjective and individual risk tolerance dictates their trade management.
personally, i like to make my trades free as soon as possible and only then i feel comfy riding a position to eternity as i know worst case scenario, the trade will be an scratch trade. Thats why i prefer trading options as i get to adjust my risk.