Plan the Trade

It wasn't that long ago that 66 ticks with 6 comms would have seen you smiling)

The BE +1 caught me a good bit. Got one hook short.

first time I stayed a little later and it worked for me yahoo first a +7 on a hook then the pullback for 44 followed the candles down

hello Divergence

you posted this picture on trading made simple, at what price (tick bar) will you buy?
how to know if the price will bounce on the green or yellow line?

The above post is addressed to Harold, but it has prompted me to add a chart i made yesterday from the Dax.

There are two levels to watch for a pullback. The first is the very top of the prior 123 (point 2) as an exact Support/Resistance line and the second, is the centre of the beginning of the move out of point 3, which is the prior Supply/Demand zone. There lies the difference in terms.

For me, i want to see proof of the reaction when it is off of point 2, unless the leg 3 (of the 123) was shallow - (i suggest that is the case in Harold's chart above), thus you would place limit order at the point 2, otherwise, i want to see a Pinbar, Engulfing candle, tweezers or even a tiny 123, trigger off of this point.

If the leg 3 is deeper and the pullback revisits that area, i would take the position without looking for any further confirmation;

The 512 tick/trade rate on the NQ seems to work incredibly well, with limit orders at the top of the pinbar body (not wick), of the thrust bar (away from point 3).
I'm still looking at comparing tick rates on the Dax to suit. 233 appears to be similar, but the NQ really is the daddy...

The same Dax chart but with 233 tick and now you can clearly see that there were no connections or deep retraces that would have worked, only by treating all bullish candles after a retrace as a Hook;



Some will argue that this is easier on the eye and simpler to use.

I find placing lines on a chart (before PA has reached it), in expectation helps to keep your mind on track...

I know most here will feel that the faster tick rate charts that i post, have a little too much 'noise', but as i pointed out before, what looks to be a pinbar on a larger scale, is usually a 123 on a small scale and i really am concentrating on 123, trigger, retrace off of a prior zone to give likelihood of trend continuance (thus target is a fresh HH (long) or LL (short).

Once PA reaches that point, usually the RSI/MACD is fully crossed and gaining momentum, thus candles can be chased up with stoploss, until taken out.

Also, the Dax is a bit lethargic compared to the NQ, thus you will find yourself watching an hour or more for one possible good set-up with 233 tick. I'm finding i prefer to be a little more involved, which means grabbing 10's inbetween etc

Here is how the same set-up looks on different tickscales. They all give similar entry, so it's a case of do you want to trade inbetween? or just wait for the better set-ups?

233 tick;



68 tick;



40 tick;



*should have read 'off of previous point 2'

thanks The Cableguy

10pts dax demo

Nice one!)

The eternal question, has trend changed? or will it continue?

In the small 123, trigger and retrace at about 09:10 in the chart;



It was in itself a winning trade, but i had in my mind that we need to revisit the prior 123 redline below, thus it is effectively counter-trend (although it already has it's own 123, trigger - thus is a trend in it's own right, merely smaller scale). So the target is the upper redline which is the pullback level for the opposite 123, trigger short, thus there is actually another trade short there, (if you believe that we need to print back down to the prior 123 as above). Capiche?

It sounds confusing, but it is effectively just trading 123, trigger and deep pullbacks on all different scales. Trades within trades.

5Waves, (easy to spot powerful wave 3, followed by HH in wave 5), look for retest subwave 1;



The argument is as always, is it worth all that effort, when, if you are prepared to sit and wait, you can pick the one good trade as highlighted above in the 233 tick.

I'm still testing all of this out. Currently, i prefer the faster tickrate and being active, but it's hit and miss at the mo, with lot's of mistakes, mainly in trade management and stoploss chasing. Knowing when to chase it aggressively and when to leave it go, to withstand a little nick back, is very difficult, resulting in many BE's along the way...

Target of 30 hit today (couldn't trade yesterday)

trades:
pb -8
2b pb +1
2b -123 pb +1
2b -123 hook +36

I'm sticking with the fast rate. I'm also trying to do an hour and a half in the morning after London open and an hour or maybe more in the afternoon after US open, depending on results.

Today has been a good day. Although there is so much info to write about, the basics always remain the same!

Determine trend with HH/HL or LL/LH's, wait for pullback to prior Supply/Demand zone or Support/Resistance line. Take trade, follow stoploss down after retest.

Just added 35 for the day, was up 25 for the second, but +19 was nice.



For years i got used to entering on triggers of flags or 123's or C&H's etc trying this and that - and then the usual result was almost instantly in the red, up and down a bit until the inevitable stop out!

Now it is so nice when the position goes straight into the blue instead...

I'm going to admit that although Elliot Wave has it's uses and can often be a very powerful tool. It is also a hindrance, especially with regards to an overall view. It often leads to the feeling of missing out' which is dangerous. You chase a trade or make PA fit what you think is happening, or encourages you to second guess a change in trend and this is taking some time to stamp out of my trading psyche.

PA is all that matters. Period.

PA is all that matters. Period that's the facts jack

123 5minutes I do not know if this complies with the rule... 31pts

Where you have 1 it should be 3 since 1 wasn't low and 3 point candle after price took out point 2 pullback to point 3 gives you a nice ride

Harold of course is absolutely correct about 1,2,3's in its purest form.

However, I would have taken it although not text book. Surprising how many of that type work. By the way your 1 is a failed swing low for me as well.

CG - very nice charts.

Couple of +1s so far