Martingale Entry in Kolachi Method:
Martinagling in gambling and trading is quite different.In gambling, the gambler doubles the bet with a hope of wining all lost money.
In trading martingaling is adding money to a losing postion.In Kolachi Method entry is never a blind entry or jump in the market.When a Kolachi Trader has a reason to beileve then he enters.for some reason price went the other way.Now there are two possibilities:trader comes to know that his analysis was wrong and he accepts it.The other is that trader knows he is right but price is taking time to go his way.It is the time when martingaling is allowed.
Let us say I saw a bullish Divergence on chart.The slope of wma changed and I entered long.But the price turned and fell down more.I am still postive that MACD is supporting me so I wait for the slope up again.Price makes another low and MACD did not fall that low.It is time to martingale the postion bczo you have reason to believe that price will head up soon.
You again see that price fell down once more and MACD still is up.You can martingale one more time on slope change.
The second martingale is the last martingale allowed in Kolachi Method.Now you cant enter more lots.
kolachi
