Monday 11 July 2011

Technique for placing stops/taking profit the profitunity way

1. Red or Green line (alligator)

This is a stop close only (price close below or above the red/green line)

Use the red line when you feel you're in a trend, to stay longer in the market.

When you see divergence in the AO or the other 5 magic bullets, you might want to change your stops to green line.

Also when the price move far away from the alligator line, tighten up your stop loss.

2. 5 Consecutive Bar Stop

This is best for volatile market

3. Bullish or Bearish Divergent bar

Use this when it's formed near support/resistance

Also when there's divergence in the AO or the 5 magic bullets

4. Sell/Buy signal in the opposite direction

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