SCALE SHIFTS
In the section where I explained the various techniques & opportunities I
tended to focus on one scale (i.e. exclusively Daily candle charts). Realize
that, generally speaking, most (if not all) the techniques explained can easily
be modified to work for different time scales (i.e. play with 8, 4, 2 or 1 Hour
candles, 30/15/10 minute candles, or even boldly trade on weekly
charts). There are certain considerations to be aware of when shifting from
the suggested scales; your stop sizes will be proportionally affected, and be
aware that if you go to say 4 hour candles from Daily candles that you have a
different effect considering not all 4 hour candles are affected by market
overlap times.forex sato
Certainly feel free to play around with this, but before committing yourself to
a real money trade first “back test” (by looking at your charts to see how well
the setup did historically), and further test yourself with several demo trades.
Here is an important way to take advantage of a Scale Shift. Shift down a
scale or two to use some trading method as a way to enter into a larger
trade. Ideally you can manage to have a smaller stop requirement and
possibly even increase your amount of lots traded. Either way you might
potentially score a better overall trade based on the same “big” trade. Incase it
isn’t obvious to you by now I’ll simply state here that I’m a BIG advocate of
trying to enter into a big trade through a small trade.
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