Silver chart 9.30am EST on Friday. We have the algorithmic signal on the daily. If and how you participate in an opportunity like this should be defined well in advance in your trading plan, based on careful consideration and testing.
If you choose to participate:
You may choose to enter on the close of the bar on the daily, and not worry about the intraday back-and-forths. For many professionals, the cleanest technique, although also the most painful: you really need to calculate and be comfortable with your risk and control your nerves. (Both of which skills are attributes of the professional trader.) Also note that if the bar is large, you may not get the best entry price, since price may retrace in today’s session to within yesterday’s range. Your initial stop must be correctly placed, based on the daily chart, which is, in this case, the chart we trade.
Or you may want to wait for a precision-entry aka pullback on a smaller chart (see situation at 4.30pm EST below), in order to get a better price. In this case your entry may end up being within yesterday’s range. Or maybe not, if the next LTF trigger is above yesterday’s close. Note: even if you pick a spot to enter on the LFT, you are still trading the daily chart: the rules of placing your initial stop correctly still apply!
For further study and comtemplation, google "ways to enter a pullback trade site: remek.ca" to see past blog posts on this subject.
Always remember, trading is a marathon, a risk management game played over a large number of trades, executed the same way. The law of large numbers apply.
Disclaimer: this trade is a trade like any other. It may hit the target first, or it may hit our stop first. Its outcome is independent from us, and will solely depend on what those people will do who enter after us.
