AbleTrend Member Comments and Correspondence
Patrick, an AbleTrend user writes:
“Hi Grace, I really enjoy your blog and find it very encouraging. Please continue to provide valuable insights using AbleTrend.
I do have a question: when you send out examples of trades using the guidance chart, you typically show the grade being held until there is an opposite signal or a stop loss level is hit. When I listen to Ron every week, he typically uses price touching or closing out of Bollinger bands as take profit areas (could be a partial).
What is your view on this? Would you take profits using Bollinger bands or just hold for the potential big move using a reverse AbleTrend signal as the exit from the trade? Thanks, Patrick.”
Here is my response:
“That’s a very good question. Taking partial profit when price closes out the Bollinger Band is a very good strategy. In the blog, we just use the general rules to make the point of view simple so that many new people would understand. In fact, as you practice more and more, you’ll find more strategies yourselves. The key is to test and to review. I used to do “the best trade of the day” exercise. I would jot down my observations about the market with AbleTrend signals both in real time and with hindsight, and comparing the view of real time observation and the view of hindsight. At the beginning, the discrepancy between the two views was large and after consistent practice the discrepancy between the two will become smaller and smaller.
This kind of experience accumulation cultivates a real skill that could benefit for life. Finding a trading system that reveals the fundamental
principles is not easy so to make it a part of your own is valuable. This exercise, I found later, is beneficial to life in general to help us to get rid of the subjectivity and become more truthful to the reality of the world.”
I then asked Patrick if he would be kind enough share his question along with my correspondence with other traders in the next blog and he agreed. I hope this message is helpful to you. Next time you come cross with some questions about AbleTrend, please feel free to write me or post in our blog.
Markets are ever-changing but AbleTrend rules remain the same. Practice one Trade Setup and Outcome a day. Taking small steps, not big ones, are the fastest, and simplest way to build success momentum. Ready? Here are some Trade Setups and Outcomes with AbleTrend indicators applied.
With Warm Regards