Please read Part 8 for context to Part 8B.
I forgot to add the additional methods of entering a Short trade based upon today's candle. Since this is a tutorial I want to provide all the opinions I can think of. Keep in mind this is a tutorial using live trading of the currency pair EURUSD as and example and is not a recommendation to actually place trades on the trading suggestions given. The goal is to provide education on how I place trades and then for each trader to take this information and use as desired in their own trading decisions.
So how do we make trade decisions based upon this candle?
2. Short Entry method two - Place a Short trade on the next candles close if it closes below the low of the Doji, this is called a "momentum trade".
Note: Short Entry method one explained in Part 8 is riskier than the Short Entry method two explained above, however it provides a better risk to reward.
Note2: Short Entry method two explained above is less risky than Short Entry method one explained in Part 8 but comes at the cost of a lower risk to reward.
Note3: There is always a trade-off in trading, the old saying "With higher risk comes higher reward", this is true in some cases but with higher risk also comes the risk of the trade turning against your position and Stopping you out!
3. Short Entry method 3 - Place a half position Short Entry based upon method one in Part 8 of this tutorial and then wait for another pullback to enter an additional half position.
Note: Short Entry method 3 helps to reduce risk further but also at the cost of still lower reward to risk.
I forgot to add the additional methods of entering a Short trade based upon today's candle. Since this is a tutorial I want to provide all the opinions I can think of. Keep in mind this is a tutorial using live trading of the currency pair EURUSD as and example and is not a recommendation to actually place trades on the trading suggestions given. The goal is to provide education on how I place trades and then for each trader to take this information and use as desired in their own trading decisions.
So how do we make trade decisions based upon this candle?
2. Short Entry method two - Place a Short trade on the next candles close if it closes below the low of the Doji, this is called a "momentum trade".
Note: Short Entry method one explained in Part 8 is riskier than the Short Entry method two explained above, however it provides a better risk to reward.
Note2: Short Entry method two explained above is less risky than Short Entry method one explained in Part 8 but comes at the cost of a lower risk to reward.
Note3: There is always a trade-off in trading, the old saying "With higher risk comes higher reward", this is true in some cases but with higher risk also comes the risk of the trade turning against your position and Stopping you out!
3. Short Entry method 3 - Place a half position Short Entry based upon method one in Part 8 of this tutorial and then wait for another pullback to enter an additional half position.
Note: Short Entry method 3 helps to reduce risk further but also at the cost of still lower reward to risk.
