(comments from the discussion in
http://www.mudraa.com/singlepost.php?messid=77098)
this is applicable for stocks also. this method is, so far, my best. it is so good that no other indicator is required. i repeat, no other indicator. finally i am able to trade totally from my e63 where i can see only price graph and no indicator. those who miss it or underestimate it will be missing a fortune! best wishes!!!
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we should not enter the first trade till the market has taken a clear first direction. That generally happens when the market has broken previous day high or low. If previous day high and low are too far apart, then first 30-45 minute high low of today is to be taken.
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if no change in direction happens at likely time stations, fresh positions may be added but not advisable.
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once a direction has clearly been taken by the price and a trade has been taken accordingly, it should not be squared off till there is clear reversal in direction. Must not panic for small threats by price fluctuations.
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if price doesn't break yday as well as today morning's high low then we wait for it to break high low made till 1pm when european mkts open. If it then breaks high-low take the first trade for the first decisive direction taken by the price. If price doesn't break high low for entire day we dont trade and say thanks for the holiday.
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if price doesn't break yday as well as today morning's high low then we wait for it to break high low made till 1pm when european mkts open. If it then breaks high-low take the first trade for the first decisive direction taken by the price. If price doesn't break high low for entire day we dont trade and say thanks for the holiday.
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if the price takes its first direction after 1pm and then surrenders it quickly, call it a day. don't trade any more.
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