2018issue C1340-42
Matching tape tempo on a closed yen-cross candle ticket
Editorial reading of one documented yen-cross buy: name the tape tempo first, assign trend-following or scalping to that tempo, then check that the protective stop, trailing stop, and take-profit were written as a single bounded plan before the fill.
- The write-up treats slow, sideways tape and later fast, directional bursts as a repeating cycle in which each tempo gives way to the other.
- Trend-following rules are described as a poor match in the slow, sideways state and a better match in the fast, directional state.
- Scalping and other short-horizon rules are described as better suited to slow, two-way tape than waiting for a persistent trend.
- The same yen-cross ticket listed an entry at 192.35, a protective stop at 191.35, a take-profit at 195.35, and a trailing stop at 193.85.
What the ticket recorded
The archive records a yen-cross buy with an entry at 192.35, a protective stop at 191.35, a take-profit at 195.35, and a trailing stop at 193.85.
The same ticket opened as a buy on 15 June 2015 and closed on 17 June 2015 at 195.35.
The repeating tape cycle
The write-up treats slow, sideways tape and later fast, directional bursts as a repeating cycle. Each tempo gives way to the other no matter how long the prior state lasts.
Tape tempo, as used here, is whether price is grinding sideways slowly or expanding fast in one direction. That reading is what the write-up uses to choose between trend-following and scalping.
Which ruleset fits which tempo
In the slow, sideways state, trend-following rules are described as a poor match, while scalpers and other short-horizon traders are described as better suited.
Scalping, in the sense used here, is a short-horizon ruleset that treats slow, two-way tape as the working environment rather than waiting for a persistent trend.
In the fast, directional state, trend-following rules are described as a better match. Trend-following, in the sense used here, is a ruleset that looks for continuation after a fast, one-way burst and holds for the system horizon instead of fading the first pause.
Editorial check on this ticket
Editorial reading only: the archive does not name the tape tempo on this yen-cross buy. A hold from 15 June 2015 to 17 June 2015 with a take-profit at 195.35 is the kind of ticket a grader would check against the fast, directional state and the trend-following ruleset, not against a scalping environment.
How the write-up uses a strong candle
The candle procedure is presented as usable for continuations, reversals, and breakouts if every signal is taken and risk is handled as specified in the trade plan.
A strong candle, in the sense used here, is a large-range bar used as a discrete signal that larger buyers or sellers may be pushing in the same direction. A strong upward candle is treated as potentially aligned with larger buyers pushing price higher, and the same reasoning is inverted for a weak market.
Stops listed on the same ticket
A trailing stop, in the sense used here, is a stop advanced after entry so the exit bound can tighten during the hold without leaving the original risk undefined.
The documented ticket listed the protective stop, the trailing stop, and the take-profit together with the entry.
Editorial reading only: the grader asks whether those three exits were already a single bounded plan before the fill, not whether the later close at 195.35 proved the plan.
All readings on this track · 7 readings
- 2000The listed cash open as a three-clock execution problem
- 2005First-leg scalping with matched stops
- 2006Holding period as a system constraint
- 2007Fair value, open prints, and sweep fades
- 2010Fixed-share fade scalping as emotion control
- 2012Forex and currency futures: pip-spread, deposit, and scalping size
- 2018Matching tape tempo on a closed yen-cross candle ticket