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So you stop into the BO of the bar you get a signal on for example? Nice thing with this sort of entry is momentum often takes you away from your entry pretty quick. Downside is I guess your stops are a little further away. |
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EXACTLY.
You get filled WITH the momentum vs. AGAINST it. Downside is stops are larger.
I view it like this - with a regular resting limit order you are asking price to go against you and then snap back and go with you. Example - say you want to buy the ES at 1500 and price is at 1503. You want to go long, but price must go DOWN for you to go LONG. Not only does it need to go down, on the ES, it must go past your price level to ensure a fill. So price needs to travel to 1499.75 in our example for you to get long.
Just seems counter-intuitive to me. Price must go against you in order to take on a position. That's hard for me to want to trade like that.