back start next[start] [1] [2] [3] [4] [5] [6] [7] [ 8 ] [9] [10] [11] [12] [13] [14] [15] [16] [17] [18] [19] [20] [21] [22] [23] [24] [25] [26] [27] [28] [29] [30] [31] [32] [33] [34] [35] [36] [37] [38] [39] [40] [41] [42] [43] [44] [45] [46] [47] [48] [49] [50] [51] [52] [53] [54] [55] [56] [57] [58] [59] [60] [61] [62] [63] [64] [65] [66] [67] [68] [69] [70] [71] [72] [73] [74] [75] [76] [77] [78] [79] [80] [81] [82] [83] [84] [85] [86] [87] [88] [89] [90] [91] [92] [93] [94] [95] [96] [97] [98] [99] [100] [101] [102] [103] [104] [105] [106] [107] [108] [109] [110] [111] [112] [113] [114] [115] [116] [117] [118] [119] [120] [121] [122] [123] 8 Trading By The Book - Part I Setting ObjectivesG0LD-1990Z5533DI0616 PEICE= 484 9 Figure 14 The first requirement is easy. My Objective Point (OP) for the trade will be equal to an expansion of the last A,B,C swing prior to the breakout. The formula for this expansion is: OP = - A + C. The price at is 4748. The price at A is 4995, and the price at is 4855. - A = -247.4855 -I- (-247) is the same as 4855 - 247 = 4608. My objective for this trade is 4608. if it is reached, I will exit the trade. I wiil then stand by and wait for a retracement in order to reestablish a position.G0LD-i890Z54385347 5872 49814890479; 4787ft4615 4524BOUTICB ->Figure 15 What I can expect at this expansion is some sort of congestion, correction, or support to come into play in the market. The truth of this statement is clearly shown above.Possible Events after BreakoutI have been CONSISTENT in following the rules I have learned through experience. I have PLANNED out the entire entry for the trade.Recalling that my order was filled at 4696, it is now time to consider the possibilities that might occur since the trade has been entered. This action is part of managing my trades. I have ORGANIZED my possible trade by identifying the range, and selecting entry points above and below the range. I have placed a CONTROL on possible losses by selecting a protective stop. I have DIRECTED my broker by communicating to him the conditions for the trade. I have DELEGATED to him the authority to exercise this trade on my behalf in the event the conditions are met. Now, I must PLAN my actions in case my order is filled. I must be DILIGENT in doing this. It is part of being CONSISTENTProbable Situations after BreakoutWhat are some of the situations most likely to happen?(J) Gold has broken out of its range, and my order was filled. What if it moves back into The range?(2) Gold has broken out of its range, and my order was filled. What if it turns around ana moves across the range taking out my protective stop and then stays in the range?(3) Gold has broken out of its range, and my order was filled. What if it turns around andmoves across the range taking out my protective stop and then keeps going on out of the range on the opposite side of the origina! breakout?(4) Gold has broken out of its range, and my order was filled, and its moving down, but" what if it never reaches my objective?5) Gold has broken out of its range, and my order was filled, and its moving down. What if it reaches my objective?Situation 1* 1. Gold has broken out of its range, and my order was filled. What If it then it moves back into the range?I then ask myself this question: How many times has Gold tried to break out of its initial range in this direction? If it is 3 times or less I will immediately exit this trade, take a small loss and cancel my open order stop at the opposite extreme of the range. Then I wil! establish a new range boundary and wait for the next breakout, while continuing to trade within the range as will be outlined in part V of this manual.[start] [1] [2] [3] [4] [5] [6] [7] [ 8 ] [9] [10] [11] [12] [13] [14] [15] [16] [17] [18] [19] [20] [21] [22] [23] [24] [25] [26] [27] [28] [29] [30] [31] [32] [33] [34] [35] [36] [37] [38] [39] [40] [41] [42] [43] [44] [45] [46] [47] [48] [49] [50] [51] [52] [53] [54] [55] [56] [57] [58] [59] [60] [61] [62] [63] [64] [65] [66] [67] [68] [69] [70] [71] [72] [73] [74] [75] [76] [77] [78] [79] [80] [81] [82] [83] [84] [85] [86] [87] [88] [89] [90] [91] [92] [93] [94] [95] [96] [97] [98] [99] [100] [101] [102] [103] [104] [105] [106] [107] [108] [109] [110] [111] [112] [113] [114] [115] [116] [117] [118] [119] [120] [121] [122] [123]