Page 209

P1: PIC/PIC c07

P2: c/d

JWBK244-Miner

QC: e/f

T1: g

August 12, 2008

13:9

Printer: Yet to come

Exit Strategies and Trade Management

195

A daily momentum bearish reversal after the higher time frame weekly momentum reaches the OB zone often coincides with a weekly high. The stop should be trailed very close to the market once this dual time frame momentum position has been made for a probable larger time frame high. Figure 7.22 extends the daily data through Tuesday, October 9. The EUR/USD made a daily bullish reversal on October 5. The stop on the LT unit was adjusted to 1.4030, the low made prior to the daily bullish reversal. On Tuesday, October 9, the LT unit was stopped out as the EUR/USD traded below the 1.4031 swing low. Trade results (LT unit): Long at 1.3469. Stopped out at 1.4030 for a 561 pip profit. The LT unit had a large profit of 561 pips! The daily momentum never reached the OB zone or made a bearish reversal before the trade was stopped out. The trade management strategy was logical throughout the trade, with stops adjusted according to the information the market provided. The long-term unit trade lasted almost six weeks and resulted in an enormous profit. That success was a result of keeping the stop relatively far from the market in the early

FIGURE 7.22 Long-Term Unit Stopped Out

Profile for ERIC  Hunt

(wiley trading) robert c miner high probability trading strategies entry to exit tactics for the for  

(wiley trading) robert c miner high probability trading strategies entry to exit tactics for the for  

Profile for erichunt
Advertisement