Tony Beckwith
10-19-2006, 04:15 AM
Hi everyone
This is a lovely example of when you could use the trailing ATR (Average True Range) stop to determine your exit from a trade.
The FTSE 100 cash 5 min. chart...a standard TS1 sell set-up; stopping in a resistance zone; red sell bar; more than +2x risk/reward potential at the 1st profit target...
As a TS1 set-up, we might expect the trade to exceed its first targets (possible strong Wave 3 down)...
The ATR stop exits the trade with a superb +7.2x profit.
Thanks
Tony.
This is a lovely example of when you could use the trailing ATR (Average True Range) stop to determine your exit from a trade.
The FTSE 100 cash 5 min. chart...a standard TS1 sell set-up; stopping in a resistance zone; red sell bar; more than +2x risk/reward potential at the 1st profit target...
As a TS1 set-up, we might expect the trade to exceed its first targets (possible strong Wave 3 down)...
The ATR stop exits the trade with a superb +7.2x profit.
Thanks
Tony.