Thursday, 6 October, 2011

Educative, Lucrative SAR (Stop And Reverse)

Everyday When you read the SAR with the stochastics & Rsi and trade as per the green(Buy) and Red (Sell) dots as they begin to appear, you can eliminate some whipsaws and take sizeable profits in each trade.

Alternatively when the trend is down, trade only the red dots and vice versa.

If you know in advance the likely targets, critical levels or a completion of a wave structure( Fives or ABC), you can then book out before the trend reverses.

Try this exercise diligently and see your profits growing. Trade with the trend. If you are trading a counter trend, trade small & with strict SL and for a very short duration.

And don't go around trumpeting your triumps but just keep to yourself and trade consistently and gratefully say a "thank you to your favourite GOD", thereby keeping your feet firmly on the ground and heads bowed down to receive the bounty consistently.

Below is today's intrachart with " 4 trades" of sizeable profits. Even if you had traded the one whipsaw, you still would have ended up mighty happy with your performance.

via -