Thursday, November 20, 2014

New Trading Zone

I entered orders to lock in profit last night and they were hit. here is the chart of that.






I then drew in some trend lines where I thought price might react just because I saw them.
Based on current market structure, I am feeling that from where I placed the robot we are going to get a lot of whipsawing. Whipsawing is when you get loss after loss in either direction. I think the market looks too quiet and I feel it might be pretty non-directional for awhile. With that said, I am not going to be around today to watch and manage the trades that take place because I will be out enjoying my day off. If I were trading for a living, in all honesty I wouldn't even be placing this robot in the market right now because of how I am perceiving the current choppy price action.

However, since this is all basically a test to see how well the robot can handle live market action, I am going to implement it and we'll see what happens.


As you can see in the chart above, movements are very choppy and barely outside the range of the box. I can always change the width of the box to accomodate for this, but i am leaving it alone for now. I really do suspect a large series of losses over a short period of time, so my risk will be low for awhile.  Below is a Daily chart in which you can see that the overall direction of the market is still down or "Bearish".


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