BULL and BEAR pullback trades and risk management

15 มี.ค.

Here are rules for long and short trades via Bull and Bear PullBack and trade management for it.

15 มี.ค.

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Definition of PullBack trade:
A Pullback is when a price action within the context of an uptrend or downtrend traces an orderly price decline/incline aka correction from the peak of an up leg or of a leg down.

Background:
The power of an upside or downside move after a retracement can be greater after a strong and steady uptrend or downtrend especially when the retracement is on a smaller volume with the smaller candle.

Practical Use:
Technical analysts will often use the Pullback pattern to begin looking for long or short positions as the asset reaches support or resistance areas.

15 มี.ค.

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RISK MANAGEMENT RULES

STEPS FOR ENTRY IN BULL PULLBACK

1. Set Entry Price
- Above the closed candle’s high.
- 1/8 of that candle’s trading range (we calculate trading range H of the price
minus L of the price to represent a trading range of assessment for a specific
period/time).

2. Use a Stop/Limit Order
- Stop (trigger) = H of the day plus 1/8 of trading range.
- Limit = +5-10 cents more Stop price (20 cents more if the price is above 300 $)

3. Attach Initial Stop-Loss
- Below the candle’s low by ¼ of the “trading range”
- Manage stop loss based on the last candle or moving avg. or S/R lines.

15 มี.ค.

บันทึกช่วยจำ

RISK MANAGEMENT RULES

STEPS FOR ENTRY IN BEAR PULLBACK

1. Set Entry Price
- Below the closed candle’s low.
- 1/8 of that candle’s trading range (we calculate trading range H of the price
minus L of the price to represent a trading range of assessment for a specific
period/time).

2. Use a Stop/Limit Order
- Stop (trigger) = L of the day minus 1/8 of trading range.
- Limit = +5-10 cents more Stop price (20 cents more if the price is above 300 $)

3. Attach Initial Stop-Loss
- Above the candle’s high by ¼ of the “trading range”
- Manage stop loss based on the last candle or moving avg. or S/R lines.