DOW - PA, Stops and hedging

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reason M5 is signalling possible small PB and I have to leave trading desk
So far got some good trades, all longs

Will wait for the reaction to that big number, flat for now
It was a good day for longs!!!
I am away tomorrow, so not trading

If tomorrow DOW opens with a larger gap above this session close, I would be very careful with longs, as there might be an attempt to visit the last intersession gap, which has not been filled during the NYSE session.
I am away almost for the whole trading day tomorrow, but the above is my thinking about the possible PA for tomorrow. It really depends which way the gap is created.
Today's move up on a lower volume compared to the volume of the last five days.



PA still within the parameters of the WRB

I am going to be away for the next 10+ days.
Good trades to all!

back at the trading desk.
Covered quarterly longs, waiting for a possible small PB


the open gaps made me taking profits on long positions, just in case

DOW and all the leading US indices performed well and we are told the bulls are back, which is probably right.
Thinking of the US indices, the current situation is a perfect illustration of TA needs to be applied alongside fundamentals, or even the para fundamentals, (or trans fundamentals). When a given economy is shifting towards the re-industrialization, the outcome is certain, though it might take some time. Nothing will change the outcome, no legacy media or "know how to gurus" who for their own reason would like to meddle the minds of the for ever hopeful and confused liquidity providers, (at least the 95% of the likely readers of this post - sad statistic)
below are the M30 charts with DOW NYSE sessions



For intra day trading the PA on M30 to M5 is very helpful for scalping taking into account the high volatility and intermarket analysis
I also use M15 with that same setting, and find the way to hold profitable positions a bit longer. DOW moves fast and positions accumulate points quickly, that is if one is pointed into a right direction, (applies to all TFs), but on shorter TFs I take the profit when it is there, of course also looking at the longer TFs.
If I get out too early, which often is the case, it takes nothing to renter again, at times in a very good place. It pays not to be married to any position and be free to renter with some speed, on intra day at times PA is very fast, so it is a great advantage to have a plan into which direction to trade and the position size has to be comfortable, but meaningful at that same time.
Good trades to all!!!

DOW is very bullish, as can be expected when re-industrialization is on cards

As a useful insights to further profitable trading I will mention a few additional things:
- awareness of trending market v ranging market - what are the characteristics of both and what are the signs of transition from one to the other
- Impulsive move v corrective move - what are the characteristics of both and what are the signs of transition/rotation from one to the other, FIBs are so useful in that department as well as measured moves, symmetrical and harmonic moves
Interpretations vary with part being objective and other parts propose a more subjective interpretation linked to the subjective appetite for risk, and each trader's risk management.

Specific to trading indices - especially useful are all various gaps and pivots and how they relate to the above
I have written on so many occasions that repetition of the obvious utility of gaps (at least obvious to me) would be a waste of time.

After the Memorial Monday DOW made well over 200 points to the long side during the NYSE session
The market closure since the last Friday made TA a bit more difficult, nevertheless market made a reasonable, though in a bit subdued offer.
Nvidia , HP AMC earnings tomorrow
traded both cash and quarterly futures on different accounts

M30 and M15 (M15 chart not posted) points to a slow down of the move up or a rotation
just as I type market has moved another 30 points. all longs closed in the round number region and having a break

after a reasonable few trading hours
time 4

DOW Renko (brick set to 25 points) with MA5 channel and T DeMakd counts
Chart on the Right is M1

Due to the Memorial Day I have been very conservative and taken profits much too early, but that observation comes after studying what has happened during the last few hours. I am pleased with the profits and looking forward to another trading day with its own challenges.
I have anticipated the move down from the H before the NYSE session towards the intersession gap, and have identified the rotation zone to the upside with some precision, a move in the direction of the trend in H4, H4 Stochs confirming, together with the other TFs I use. From that point forward I only had Longs in mind.
Felt a bit rusty after the break, the commitment to go long brought profitable trades.
The implemented strategy worked well.

TOP black charts from the left Daily. H4 M30
Bottom charts left white renko (brick set to 25), right white M1

done with shorting DOW due to divergence on H4 an M30, stochastic rhythm too
M30 angulation
not committed yet to the long side.Waiting for H4 and M30 to come into play
NVIDIA AMC results shall do something

Not trading today, doing other things.
Such easy and docile PA, stay alert and do not be tempted to fall asleep!

Divergence on M30 and M15, a good bounce up from the lower fib band on M1 to fill the gap to the last session close - the usual place to pay attention and worthy of taking risk

I know it is boring stuff to repeat that same settings, bur it is profitable, I choose profit though with possible less excitement!

VSA in context of trading utilising some other useful insights

I would like to offer some insights from my own experience and perspective, (both limited and subjective) but a lot of what I consider important falls outside of the scope of this thread. VSA is a part of my overall strategy but it is not the only ingredient, VSA is interwoven with other parts I find useful.
I mainly use VSA on longer TFs, including DOW NYSE sessions only.

Every trading instrument has both characteristics, the common characteristics and specific characteristics, I am of the opinion that it is important to be aware of these distinction and utilise that awareness.

Ancient Greeks used two terms in relation to time, Chronos and Kairos, it is important to know the distinctions between these terms and apply them, trading included.
https://www.google.com/search?q=conc...hrome&ie=UTF-8
For this reason I distinguish NYSE sessions. PA outside the NYSE sessions is useful to see what MM are doing, taking gaps into account.
Interestingly, the volume is still displayed on DOW outside of NYSE session when the principal market is closed, the displayed volume outside the NYSE session has very different effect on results directly correlated to it.

I also think in terms of trend/range scenarios and movement to the mean and away from the mean (both of them in relation to the trending range)- a very important part for me.

Things mentioned above are just an examples of things I consider and use some tools to assist in interpreting the PA in a way that brings consistent profits.

I wish you good results in your trading journey.
2be

PS
I have copied this post originally posted on VSA thread

VSA in context of trading utilising some other useful insights

Quoting HiddenGap
{quote} I am a total believer in the importance of trend. I would almost go as far as to say, the fact that markets trend is the only edge a retail trader really has. Notice how I mentioned the unidentified MA in the previous post. The trend isn't just your friend, it's your lover. Personally, I would not be trading on this time frame. But if we assume that this is a 1 minute chart, then I would be looking for FTFC on the 60 min, Daily, and Weekly as my trend determination factor. No short trade would be attempted unless or until each timeframe's...


...the fact that markets trend is the only edge a retail trader really has...
the statement above is so VERY VERY true, VSA has to be used in the context of TREND

One has to keep things in balance, the often repeated slogans like - the market keeps the trend 75% or more, or - the market is in range about 80% of the time (although both are true) have to be subjectively observed, understood and these implications of subjective understanding applied and positively verified - blatantly, the only verification are the consistent profits, this notion is well avoided by various explanations by the ever hopeful but in reality as for now still the consistently loosing traders - providers of the liquidity. There is nothing wrong having loosing trades while learning, trading smaller lots, or having certain percentage of loosing trades but over all still be reasonable profitable.

Applying VSA principles (the most basic principles) in relation to trend demands most serious consideration.
Buying climax and selling climax are very important, but if not carful one is tempted to see them everywhere, even worse, see both of them at once in a horizontally ranging markets. (my sarcasm to make a point).
It is true that trend has the tendency to continue about 3 times out of 4, 75% or more, that means that at least 3 times out of 4 I not only might but I will certainly be wrong acting solely on badly, haphazardly and heuristically identified climax ( either selling or buying climax).

Another important subject to consider is that climaxes are inseparably related to turning/rotation points/zones thus hopefully creating swing trades, when there is a change of trend or a strong move against the prevailing trend. Catching tops and bottoms is another term for that, though not always needs to be negative notion, but if acted upon it has to be always accompanied by remedies (usually in the form of tight SL or hedging) just in case things go wrong.

If not careful I can be excessively preoccupied with climaxes leading to the rotation points, thus ignoring the obvious and statistically proven fact that trend is 3 times more likely to continue than to change it's direction. While the concepts of buying climax and selling climax are important and indeed very useful, it is paramount to pay attention to VSA in relation to the trend continuation! Taking statistic of the trend continuation as at least 3 to 4, it rightly might be considered that matching the VSA principles to the trend continuation statistics one shall develop a way to apply the VSA principles in a statistically parallel manner.
By this I mean that I am committed to use VSA as trend continuation as well as indicating possible rotations, it may be that three times more energy and attention should indeed be given to VSA in relation to the trend continuation, versus catching tops and bottoms.
The above is assumed but that assumption can easily be ignored, and my emotional and psychological constitution will make me busy with things that can endanger profits.

There remains much more to be written, but for a time being let the above be a stimulus to creative, purposeful and profitable application of VSA, , being VSA in the context of other useful trading insights.

PS
I have copied this post originally posted on VSA thread.

Due to one of the most basic VSA principle - effort versus results - I am posing posting for a while.
Things to do, trading included, studies and various places to visit... will be away for days and weeks, even over a whole month in July.

Closing Longs on DOW42635
will reload on the PB
Shall be interesting day, Elon and Donald influence blown up by the media, great opportunity to trade!!!!

Be mindful of the last session close!
0.75% to the last session close
Gap territory!

740 shorted DOW
adding 708