NECKLINE BREACH TRADES - WHEN TO DEPLOY TRADING BOTS WITHOUT PIVOTS


Trader Assessment Insight - Prior To Deploying a Bot for Breach of a Neckline, You Should Able to Readily Identify a Successful Right Shoulder that Arose After a Head Formed with Conclusionary Order Flow.

Q: Was Right-Shoulder Successful?

If Yes, Then Consider Deploying:

  • Long Bot without Price Pivot to Catch the Neckline Breach.
    • Note – If the Right Shoulder was successful, and the Neckline breach was followed by contiguously range bars that close at the high, then Consider Moving Your Target Out. 

If No, Then Consider:

  • Manually reversing Long position to a short position at, or near, your stop – Particularly if you were Top-Ticked [Add Hyperlink or definition/example of Top-Tick] in the Right-Shoulder trade.
    • This reversal trade frequently provides more than enough ticks to scratch the failed Right-Shoulder trade.
      • Note – We will be writing trade management routines that you can elect to do this Reversal automatically for you.
  • Deploying Short NinjaBot without Price Pivot to Catch the Breach of Support.

Important Trade Management Nuance


Assessment Question: After Price Followed Through from The Right Shoulder, Was There Follow Through of Breach of the Neckline with Substantive Concomitant Order Flow?

If Yes, Then:

Consider moving your target out.

Keep on the Lookout for A-B-C reversals.

Preferred Trading Bot Configuration for Breach Trading