Page 235

P1: a/b c08

P2: c/d

QC: e/f

JWBK244-Miner

T1: g

August 12, 2008

18:47

Printer: Yet to come

Real Traders, Real Time

221

FIGURE 8.18 First Unit Trade Management

The morning of January 25, Kerry recommended moving the stop on the second unit up to 1356.25, one tick below a minor swing low. The ES did not immediately continue to advance to the 50% retracement, and the second unit was stopped out later in the morning for a 45 point profit. (See Figure 8.19.) Trade Result: 83.75 points Unit 1: 38.75 points ($1,937.50 per futures contract or 3.0 percent SPY) Unit 2: 45 points ($2,250 per futures contract or 3.4 percent SPY)

Robert’s Follow-Up Kerry uses the 24-hour data. I generally only look at pit session data because the volume is so low overnight and there are often quick but meaningless swings and volatility overnight. Kerry’s initial target to exit one unit was the 38.2% retracement of Wave-3. Usually, the minimum expected retracement for a correction is 50% except for a possible Wave-4 where the probable retracement is in the 38.2-50% Wave-3 retracement range. That is why

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