P1: PIC/PIC c02
August 18, 2008
Printer: Yet to come
HIGH PROBABILITY TRADING STRATEGIES FOR ANY MARKET AND ANY TIME FRAME
FIGURE 2.11 Smaller Time Frame Momentum Bullish Reversals, Period 3
small loss. The second daily momentum bearish reversal was made just one day after the swing low in March and would have also resulted in no trade or a loss, depending on the entry and initial protective stop strategy. Wouldn’t this have been aggravating, considering bonds made a consistent decline of almost five points following the weekly bearish reversal and bearish momentum trend! No matter what your trade strategy, this can happen. This is another reason I used this period to illustrate the Dual Time Frame Momentum Strategy setup. I could have picked a series of well-chosen examples that worked flawlessly every time, but I want you to learn the realities of trading. You never know what is going to happen on the right hand side of the chart. That’s the side without the bars. That’s the side you have to make decisions for. If you don’t stick to your trading plan, you are doomed to failure, period. End of story.