A Sample of Trading Using My Method

This is a sample of trading using my method.

In the above sample, we should have been able to define a scalping path after 4 Tops and 4 Bottoms (T4 and B4) happened. There was a clear R/S line we can draw. As for me the R/S line doesn't have to be drawn between low to low or high to high very exact. The most important thing is that line represent some tiny area where price bounces back to other direction. As we can see, this sample represents a narrowing sideways move. We can tell because the path was formed by the Lower High and Higher Low. In this case we can open both Long or Short positions.

The Entry Point 1 (for Short position) was taken because the price had already touched the Resistance and the William % Range was already in extreme Overbought area though the RSI was not. The timing is when the W%R was already pointing down.
The Stop Loss was put above the Resistance.

The Entry Point 2 (for Long Position), which also became the Taking Profit for Position 1 (TP1, for Entry Point 1), was taken because the price had already touched the Support line and both RSI and W%R were in extreme Oversold area. I put SL some point under Support line.
The target for the Entry Point 2 (Long Position) was TP2 which was a little bit below Resistance.
To maximize the profit, we can delete the TP and change it with Trailing Stop.

For me, the Entry Point 2 was far better than Entry Point 1 because it has more conditions fulfilled.
Scalping Path can be drawn perfectly, Price touched the R/S, both W%R and RSI in extreme Oversold area.

Good Luck


GG - 2013 05 13