burra

Thanks for your input, I really struggle with that level of rigidity in my game plan, although I know it is the one thing that gets me into lots of trouble!! I know full well that trading after the market has made a retest is the most elegant and least stressful way of trading I have found. You miss most of the whipsaw and emotional hardship of the market shaking out all the weak hands at turning points but when I see the market struggle at one of these areas my little devil kicks in and tells me 'how can you let the market retrace for 15-20 mins and miss all that move, look, the price is turning now!' I suppose it is only by more hard work and analysis that part of my brain will eventually accept this. My rational part already knows....

Hi Phanton, I came across this site today and followed a link from another thread to this one. I have spent the last few hours reading all the comments and posts and working through your examples. Without going to much into my background I trade in a very similar way to this method you have described. The one huge difference I am still having difficulty with is discipline, mainly trading against the trend. I use a 25 period ma as my main trend indicator which is more or less the same as yours. Is there ever a spot where you will trade against this trend? Let me give you an example. I am based in the uk and mainly trade the Dax but I don't suppose it matters which markets we are talking about. But, say for example the Dax has huge resistance at 6450. The market makes a big move up, spikes a couple of times above this area but each time leaves the distinctive hammer on the 15min candlesticks. It falls off but retests this area once more and once again fails, giving us a clear indication of a resistance level. During this time the 20 period MA is still rising giving us a dilemma. Price is telling us we could see a retracement but the average is saying we are in an uptrend. Would you ever trade this reversal? The reason why this is relevant at the moment is that the Dax is in the trading range 6250-6450 and so many times this past week I have seen clear indications of support and resistance in the price but each time they have been opposite to what the averages say. Do you alter your strategy according to whether we have a trending market versus a range bound market? Cheers for all your effort in your previous posts as well.