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Re: Optimal or Useful?
True enough... perhaps I should of cleared it up. I was looking for an optimal volume chart timeframe suitable for my risk tolerance. With candles, this is more of a confirmation > enter type strategy. Therefore any entry requires a slightly wider stop based on the previous bar high, HOD, LOD, etc... With a wider timeframe the confirmation comes later. Hence a wide stop. With a shorter timeframe the stops can be slightly less. My risk tolerance is a maximum of 20 YM pts per trade. Therefore finding the right interval with volume charts is crucial for me to decide whether I will take the trade or pass on it.
So basically, I was just testing timeframes that give setups with no more than 20pt risk and that signals valid candle patterns. By valid, I mean with a volume chart I need to see a clear fight between the bull and the bear.
With business plan, methodology, money management, etc.... nothing is being changed here with my trading. Im taking my core trading style/methodology and adding a little twist to it by incorporating volume to a greater degree.
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James Lee
TradersLaboratory.com
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