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RE: Awesome PAY trade yesterday, and how to use Volume on a chart
Luc. When you enter your positions, do you have a systematic way of layering in?
Do you use a set number of tics to enter each time for each price level? Do you just eyeball it? Do you wait for price to seem to slow down?
As price is falling, do you add MORE size up to your desired risk? I.e., would you first entry be $1, then your second entry $2, and third $4, or some scheme like that that allows for a lower average entry price the further price drops?
Is this a systematic process for you, or is it something you've just developed a 'feel' for over time?
Yeah, im set up a bunch of buys like you said 1 then 2 then 4 and what not.. but If im there and whatching as its falling then, i will quickly adjust those prices if it seems like is slowing down or there are buyers coming in or there is some news I didnt factor in.. SO i have often been buying like 1 and then 2 and then 4 and then i see huge buys come in and i get like 50, which makes the 1 and 2 and 4 meaningless... Basically im saying that if im not there, its all small tiny buys, but if im there to work the position, im ready with my guns to go for the kill
Sweet video luc, and so many questions but one that sticks out to me from the reply on this comment is how to know exactly when that big buyer is not stepping in and thus giving you the green light to buy heavy? Theres no alert that can be set for when a certain size trade goes through right? Because to my understanding wouldn't by the time you see the green bar on the chart that there was some decent volume be to late to then take advantage?
The big guys have the same chart info as you to.. they dont know any more than you,, so if you look at previous panic drops, you can pretty easily guesstimate where the drop is getting overextented.. when you start to get a longer drop then you have ever seen on the history of the chart and there seems to be good volume, i would jump in with both feet.
So... is there any rule of thumb on WHERE to enter? Or are you doing as you mention, where you just kinda base it on the prior panic drops(approximate distance) for entry?
It just seems like you 'could' buy anywhere?
Am I overthinking it?