Traders Laboratory - View Single Post - The "Super Coil Break" trade
View Single Post
  #5 (permalink)  
Old 05-18-2007, 08:05 PM
walterw's Avatar
walterw walterw is offline
walterw is The Trader Chimp

Trader Specs
 
Join Date: Nov 2006
Location: Argentina
Posts: 2,135
Thanks: 0
Thanked 29 Times in 21 Posts
Re: The "Super Coil Break" trade

Quote:
View Post
Walter - are you initiating the trade on the first break or a close outside the keltner? The 'bands' out there - keltner, bollinger, etc - can work well in the example you gave assuming the bands do not break on false breaks. In other words, having looked at keltners myself, I found many times where price would peak it's head outside the band enough to initiate a trade and then quickly retreat back into the band. Needless to say, that was awhile ago and haven't gone back to any band indicator since.
Yes Brown, the entry was when it got out of the first keltner and let me tell you after 75 minutes of coil (super coil ) its worth the risk... because you have a great potencial being build up for the break, the longer the coil the more explosive the break.... vs a very tight stop below the resistance.... as you can see some times this type of strategies can work very well because they have embeded a very good RRR on it... so its worth the try...

I cant say, I wont take a breakout trade because there are false breakouts... would not be that smart on this type of scenario when we had not a coil but a "super coil".... this one was live with 30 contracts and when out all together at the first exit signal wich worked for 9.4k... its the only type of trade besides my M`s I am willing to take inside the day, must confess I havent trade this setup for months...

I did repent not to take live the flip that happen after that.... its still on beta lol....

Again the nuance is : The longer the coil, the more explosive the break... Cheers Walter.
Attached Images
File Type: png super coil break 2.png (164.8 KB, 26 views)

Reply With Quote