Still waiting for setup 99 new number
- #10,223
- Feb 16, 2016 11:58am Feb 16, 2016 11:58am
- | Joined Nov 2012 | Status: Trader | 3,121 Posts | Online Now
Become the casino
- #10,226
- Feb 16, 2016 5:03pm Feb 16, 2016 5:03pm
- Joined Feb 2009 | Status: Trading in the Zone | 1,766 Posts
- #10,227
- Feb 16, 2016 5:30pm Feb 16, 2016 5:30pm
- Joined Feb 2009 | Status: Trading in the Zone | 1,766 Posts
2b short loss:
"So what's the difference what I call it?" you might ask.
Well, the difference, in my opinion, is this: Had you thought about your entry as shorting a new low, and had you considered that the only 2B aqt that point would be a long rather than a short, then you would have been in a position to cut your loss much shorter by recognizing the 2B long which should have been about 15998 entry or so. I use a 377 tick chart instead of the 333 tick you are using, and on the 377, there was a 2B long entry at 15999.
Here is my 377 tick chart and a Trader Vic schematic of the 2B. Remember, a "2B" is just a special case of the 123, where the "2" is a higher high in a short set up or a lower low in a long set up. A regular 123 short, for example, the 2 pivot is the first low off the high. A 2B pivot is when the market makes a higher high after that pullback low, but then immediately reverses.
So much of trading is about how we ourselves see the market, and not the market itself, and because of this our terms become the mental constructs we apply to our decision making with respect to how we engage the market. I have found it very helpful for me to think of 2B's as Trader Vic originally described them - as reversal, and not as continuation patterns (except as a reversal of a short term reaction against the longer term trend). I have three main set ups: 123 and 2B reversals, and pullback/continuations. As it is all price action, there are admittedly similarities across the board. But knowing the similarities and defining according to the differences has been very helpful to me. In my opinion, you shorted a pullback.continuation, which turned into a 2B reversal. Looking through my eyes, the 2B was a long. The pullback/continuation was your short.
- #10,228
- Edited 8:00pm Feb 16, 2016 7:39pm | Edited 8:00pm
- Joined Jul 2010 | Status: Trader | 9,189 Posts
- #10,230
- Feb 17, 2016 5:42am Feb 17, 2016 5:42am
- Joined Apr 2011 | Status: NQ eta moi lybov... | 3,030 Posts
GoFundMe -stage-4-glioma-brain-cancer-fighter (link in my profile)
- #10,232
- Feb 17, 2016 7:09am Feb 17, 2016 7:09am
- Joined Apr 2011 | Status: NQ eta moi lybov... | 3,030 Posts
My two fave set-ups. Firstly HD for trend continuance. For longs i want the HD to form above the median line (MACD above 0) and vica versa for shorts. I also don't want it to span too far a distance and must be peak to peak. Occuring after Positive or Negative, only the first bout appears to be safe.
I do not wait or look for a 123 for entry. I go on the first parabolic trigger, after HD has formed. Any trigger before HD is present is ignored, thus quite often it is the 2nd set within a pullback. It usually means a preferable R:R ratio and this then means even a 1:1 success rate still ends up profitable. I find trailing a stop using the lower of either the parabolic dots or the 20sma, once in profit, gives the desired results, (although this is still a work in progress).
My next fave, is simple Macd cross off of a low (or high in reverse). No science, just a nice wave of green, followed by a nice wave of red, leading to a HL on the Macd. Now i look for a 123 to form. The trigger bar will then have the desired cross on the macd indicating (hopefully) strength returning.
The reason the Target looks slightly skewed in size to the Risk is to cover the 1pip spread and the +1 entry into 123. I should perhaps, also have labelled the Macd with HH/HL
It's been hit and miss putting this all into practice, with the discretion part being the question, 'is that really a 123?!', but the macd cross makes the decision a lot easier. Many times a 123 might trigger but the macd is still in neg. I was away on Friday, but back testing showed it got chewed up a bit, however, keeping strictly to the above criteria in both scenarios is (generally) doing well.
I do not wait or look for a 123 for entry. I go on the first parabolic trigger, after HD has formed. Any trigger before HD is present is ignored, thus quite often it is the 2nd set within a pullback. It usually means a preferable R:R ratio and this then means even a 1:1 success rate still ends up profitable. I find trailing a stop using the lower of either the parabolic dots or the 20sma, once in profit, gives the desired results, (although this is still a work in progress).
My next fave, is simple Macd cross off of a low (or high in reverse). No science, just a nice wave of green, followed by a nice wave of red, leading to a HL on the Macd. Now i look for a 123 to form. The trigger bar will then have the desired cross on the macd indicating (hopefully) strength returning.
The reason the Target looks slightly skewed in size to the Risk is to cover the 1pip spread and the +1 entry into 123. I should perhaps, also have labelled the Macd with HH/HL
It's been hit and miss putting this all into practice, with the discretion part being the question, 'is that really a 123?!', but the macd cross makes the decision a lot easier. Many times a 123 might trigger but the macd is still in neg. I was away on Friday, but back testing showed it got chewed up a bit, however, keeping strictly to the above criteria in both scenarios is (generally) doing well.
GoFundMe -stage-4-glioma-brain-cancer-fighter (link in my profile)
- #10,235
- Feb 17, 2016 8:02am Feb 17, 2016 8:02am
- | Joined Feb 2006 | Status: Trader | 1,392 Posts
do you know what we get to do today?
... except they're tomorrow, 'cos of the holiday that you slackers in the US took on Monday
- #10,237
- Feb 17, 2016 8:54am Feb 17, 2016 8:54am
- | Joined Feb 2006 | Status: Trader | 1,392 Posts
Well, I'm long 73 (should be 74 on my chart, but 1 tick pos slip)
Edit : missed +30 by a tick out @ +22.
I notice line charts do not accurately reflect what is seen at the time of entry.
Edit : missed +30 by a tick out @ +22.
I notice line charts do not accurately reflect what is seen at the time of entry.
- #10,239
- Feb 17, 2016 9:16am Feb 17, 2016 9:16am
- Joined Feb 2009 | Status: Trading in the Zone | 1,766 Posts