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  • #10,801
  • Mar 11, 2016 10:36am Mar 11, 2016 10:36am
Quoting moonmist
{quote} Hi DD, Are you still waiting for the gap to close ?
Not waiting for anything in particular other than a set up that fits my plan. Two long set ups I ignored for some reason. Should have been a good day, but as it is it is basically a slightly positive scratch day. This might be the slowest grind I've ever seen on a "gap and go" day. The $SPX 200 day MA is at 2020, and 2019-20 has been pivotal over the last year or two, so I imagine like a magnet that is where price is going.
  • #10,802
  • Mar 11, 2016 11:47am Mar 11, 2016 11:47am
Quoting jtrade
{quote} It's the same thing that we were talking about the line chart setup "undoing itself" (post 10,441).
Hi jtrade,

I understand line chart setup "undoing itself". Basically, the line chart is formed by the closing prices only. Hence, it does not contain the info to detect all the losing trades. A trade can be triggered and exit at a loss before closing of a bar. We need to look at the high and the low of each bar as well.

But I do not see any relationship regarding a pin bar.

Thanks.
  • #10,803
  • Mar 11, 2016 12:09pm Mar 11, 2016 12:09pm
Quoting ddaytrader
{quote} If you watch a line on close chart, draw a line at the most recent pivot high and low. Once in a while, price will break that line, but before the bar interval closes, price will retreat and it will appear as though price never traded beyond the pivot. This means when you back test, you will not see some losing trades if you depend only on the line on close, because the pattern that stopped you into the trade is no longer visible I hindsight. Look at these two pics of the same price action and you will see how a line on close chart does...
1-2-3 break long ?
every Saint has a past. Every Sinner has a Future
  • #10,804
  • Mar 11, 2016 12:46pm Mar 11, 2016 12:46pm
Quoting turnip15
{quote} 1-2-3 break long ?
I'm not sure what it is you are asking me.
  • #10,805
  • Mar 11, 2016 1:22pm Mar 11, 2016 1:22pm
Quoting ddaytrader
{quote} Not waiting for anything in particular other than a set up that fits my plan. Two long set ups I ignored for some reason. Should have been a good day, but as it is it is basically a slightly positive scratch day. This might be the slowest grind I've ever seen on a "gap and go" day. The $SPX 200 day MA is at 2020, and 2019-20 has been pivotal over the last year or two, so I imagine like a magnet that is where price is going.
Hi DD,

It is a slow day. You mentioned that you mainly traded off the five-minute chart. Do you look at the one-minute chart too ?
If the five-minute bar is too long, some people will wait for the break, the pullback and then use the one-minute chart for entry.
  • #10,806
  • Mar 11, 2016 1:53pm Mar 11, 2016 1:53pm
Quoting moonmist
{quote} Hi DD, It is a slow day. You mentioned that you mainly traded off the five-minute chart. Do you look at the one-minute chart too ? If the five-minute bar is too long, some people will wait for the break, the pullback and then use the one-minute chart for entry.
I do not look to one minute bars. Also, I do not limit my entries and exits to the bars themselves. I will enter near a low or high S/R area if the set up is right regardless of how much "time" is left in a bar.

I seem to be better able to judge what is going on when I view the PA grouped into 5 minute intervals of data.

Today was slow, but it gave a few good set ups. I missed them, imo, because they were harder for me to read using, ironically, the RTH chart. That large gap distorted the scaling, and I should have adjusted it - a real rookie error in my opinion. After all these years, I still can make like the fool.
  • #10,807
  • Mar 11, 2016 2:02pm Mar 11, 2016 2:02pm
Quoting ddaytrader
{quote} I do not look to one minute bars. Also, I do not limit my entries and exits to the bars themselves. I will enter near a low or high S/R area if the set up is right regardless of how much "time" is left in a bar. I seem to be better able to judge what is going on when I view the PA grouped into 5 minute intervals of data. Today was slow, but it gave a few good set ups. I missed them, imo, because they were harder for me to read using, ironically, the RTH chart. That large gap distorted the scaling, and I should have adjusted it - a real rookie...
You trading method is very interesting, but does solve the "bar too long" problem elegantly. Another solution is to use range bars.

Did you take the 2B reversal long on the five-minuet chart ?
  • #10,808
  • Edited 3:08pm Mar 11, 2016 2:15pm | Edited 3:08pm
Quoting jtrade
{quote} I need a Trading Plan - some structure - to actually make this happen. This is what I will be contemplating as I fly across the Atlantic next Wednesday, and during the days that follow under the hot, tropical sun.
Well, jtrade, I started trading my project account again this week starting on Wednesday. Here is what I came up with after my last 6 to 8 weeks of "rehab."

I am using basic PA: double tops & double bottoms, 3-push wedges, S&R breakout-pullbacks etc. I have banned all indicators from my charts, and I will use candle charts only. My main chart is the M5, my S/R chart is the M15, and my S/R for morning prep charts are the M60, and the daily.

My goal in this account is simple: $1000/week per contract. I'll trade one contract per $2000 in available margin. My broker allows $500 margins, but I would only approach using less than $2K/contract if I were adding to an already profitable position. I do not average losing trades.

I will not increase size mid-week. In other words, the size I start with will be consistent throughout the week. This week, for the three days I traded, I am up a little over $900 trading 1 ES. Next week, I will continue trading 1 ES. Once I am trading 2ES or more, I will take out 1/2 of my weekly profits at the end of any week during which I achieved my $1000/contract goal (assuming, of course, that that profit is preserved into Friday's close).

I will not stop for the week at $1000. I will trade every day of the week, primarily making myself available to trade during my primary 9:30 to 11:30 EST trading window. If market context and volatility indicate that the afternoon might be worthwhile, I will trade the afternoon if I am available. I will take my share of _1tick trades, but I will not cut a trade short for a 2 or 3 point profit unless that is what the market indicates I should do. Otherwise I am looking for 10+ points per trade and will use PA and S/R to guide my profit objectives.

I had two good days (Wednesday and Thursday) but today I missed some opportunities. A day like today disappoints me because today there were opportunities and I failed to recognize and hence capitalize on those opportunities. But a day where the market really does "go nowhere" will not bother me. I do not have a daily profit objective. My only goal each and every day is to trade my set ups, cut my losses short, and let my profits grow.
  • #10,809
  • Mar 11, 2016 2:21pm Mar 11, 2016 2:21pm
Quoting moonmist
{quote} Did you take the 2B reversal long on the five-minuet chart ?
I did not. I missed so much this morning that I really felt that I was no longer in the right frame of mind to trade. I had a good week, and I did not want to compound my negative feelings at having missed a good opportunity this morning by finishing the day at a loss with no opportunity to make it up going into the weekend.

I have used range bars off and on for many years. Some markets I still prfer them, e.g. treasuries, 6E (EUR/USD futures). But I am at a point in my life where I wish to simplify. Part of the impetus that has led me to this little project and my participation here in D's thread is my desire to cut away some if not most of the markets I trade and stick to one. After several weeks of testing, rehab, and soul searching, I settled on my first love - the ES. For her, I have always found the M5 to be where I see her in her best light. We each likely have our favorite girl and no doubt, a favorite dress we like to see her wear. For me, it is the ES dressed in red & green 5 minute candles.
  • #10,810
  • Mar 11, 2016 3:01pm Mar 11, 2016 3:01pm
Quoting Divergence
{quote}if theres a pin bar that would make the line chart entry a kind of a trap.
Do you mean something like this:
Attached Image (click to enlarge)
Click to Enlarge Name: YM-201606-ECBOT [M] 13 Range #2 2016-03-11 15_59_41.858.png Size: 51 KB
  • #10,811
  • Mar 11, 2016 3:12pm Mar 11, 2016 3:12pm
Quoting ddaytrader
{quote} Well, jtrade, I started trading my project account again this week starting on Wednesday. Here is what I came up with after my last 6 to 8 weeks of "rehab." I am using basic PA: double tops & double bottoms, 3-push wedges, S&R breakout-pullbacks etc. I have banned all indicators from my charts, and I will use candle charts only. My main chart is the M5, my S/R chart is the M15, and my S/R for morning prep charts are the M60, and the daily. My goal in this account is simple: $1000/week per contract. I'll trade one contract per $2000 in available...
Excellent T Plan, dd - a perfect example to us all - thanks for sharing & have a great weekend .
  • #10,812
  • Mar 11, 2016 3:14pm Mar 11, 2016 3:14pm
Quoting moonmist
{quote} Do you mean something like this: {image}
I would argue that there is no trend in that picture and no trade.
  • #10,813
  • Mar 11, 2016 4:39pm Mar 11, 2016 4:39pm
Quoting ddaytrader
{quote} I'm not sure what it is you are asking me.
Would the price action you have shown qualify as a 1..2..3..trade ?

http://www.investoo.com/reversal-str...1-2-3-pattern/
every Saint has a past. Every Sinner has a Future
  • #10,814
  • Edited 6:07am Mar 12, 2016 5:43am | Edited 6:07am
Quoting ddaytrader
{quote} I did not. I missed so much this morning that I really felt that I was no longer in the right frame of mind to trade. I had a good week, and I did not want to compound my negative feelings at having missed a good opportunity this morning by finishing the day at a loss with no opportunity to make it up going into the weekend. I have used range bars off and on for many years. Some markets I still prefer them, e.g. treasuries, 6E (EUR/USD futures). But I am at a point in my life where I wish to simplify. Part of the impetus that has led me...
Quoting ddaytrader
{quote} I do not look to one minute bars. Also, I do not limit my entries and exits to the bars themselves. I will enter near a low or high S/R area if the set up is right regardless of how much "time" is left in a bar. I seem to be better able to judge what is going on when I view the PA grouped into 5 minute intervals of data. Today was slow, but it gave a few good set ups.
Hi DD,

Divergence is kind enough to share his trading sauce, and philosophy. I am here to learn and get inspiration. It seems that you and Divergence agree on trading a single market with a few setups.

It is my understanding that ES and YM are correlated. If there is a good setup on the five-minute chart of ES, there is usually a good setup on the five-minute of YM as well. For range-bar charts, I do not know. If you have time, please outline the good ES setups yesterday. Most people I talked to limit their entries to the five-minute or one-minute bars. Your trading style is new to me.



Thanks.
  • #10,815
  • Mar 12, 2016 10:11am Mar 12, 2016 10:11am
Quoting moonmist
{quote} {quote} Hi DD, Divergence is kind enough to share his trading sauce, and philosophy... If you have time, please outline the good ES setups yesterday ... Your trading style is new to me. Thanks.
My trading style shouldn't be new to anyone as it is as old as trading itself. Writers from Livermore to Elliot to Raschke to Brooks describe these exact price action concepts. I made none of them up. I can't even say I discovered them for myself. I have, over the years, gotten much better at seeing them develop and anticipating entry and managing my winners, etc. But I am not at all an original creative trader. My set ups are no different really from Divergence's, which is why I decided after some lurking to join in here. I've shown more live charts with live trades here than probably anyone, so I don't think it fair to imply that I am somehow withholding any "secret sauce." In fact, months ago I said:

Quoting ddaytrader
{quote} And just to be clear, there is no secret sauce and no secret set ups. My trading is an open book to you guys. Any questions, just ask. Reading D's posts has certainly helped rejuvenate my thinking and has improved my trading and renewed my interest and curiosity in the markets.
And then:

Quoting ddaytrader
{quote} my trading is an open book to anyone who wants to ask questions, but I am not here to teach. I am always willing to share what I do, but I'm not going to wrack my brain nor my nerves to teach someone how to do it for himself
Back to yesterday. Yesterday should have been as good or better for me that Wednesday and Thursday, but I am still getting used to Multicharts, and my failure to realize how off the scaling was yesterday prevented me from anticipating and reacting as usual. I do not blame multicharts, as once I realized how off the scale was, I knew that it should have been obvious to me from the first tick after the 9:30 open. Yesterday's set ups were all longs, and these are my set ups. These are the only set ups I trade (other than their short sale signal alter-egos).
Attached Image (click to enlarge)
Click to Enlarge Name: 03-11-2016.GIF Size: 47 KB
  • #10,816
  • Mar 12, 2016 3:04pm Mar 12, 2016 3:04pm
Yep same setups 123 off dB retest pt 2 2b setup and another dB 123. Only difference is tf. But these patterns happen on all tf
  • #10,817
  • Edited 7:42am Mar 13, 2016 6:55am | Edited 7:42am
Quoting ddaytrader
{quote} My trading style shouldn't be new to anyone as it is as old as trading itself. Writers from Livermore to Elliot to Raschke to Brooks describe these exact price action concepts. I made none of them up. I can't even say I discovered them for myself. I have, over the years, gotten much better at seeing them develop and anticipating entry and managing my winners, etc. But I am not at all an original creative trader. My set ups are no different really from Divergence's, which is why I decided after some lurking to join in here. I've shown more...
Hi DD,

Thank you for the chart.

There seems to be some misunderstanding. I did not imply that you were withholding any "trading sauce".

The chart patterns are not new. Most people I talked to limit their entries to the five-minute or one-minute bars. That means their entries and stop loss are either above or below these bars:

Quoting moonmist
{quote} Hi DD, It is a slow day. You mentioned that you mainly traded off the five-minute chart. Do you look at the one-minute chart too ? If the five-minute bar is too long, some people will wait for the break, the pullback and then use the one-minute chart for entry.
You seem to do it differently, and are not using anticipatory entry or the range bar chart. That is why I get curious about how you handle the "five-minute bar too long" problem. I hope it makes sense. Perhaps, I should not use the word "new".

Quoting ddaytrader
{quote} I do not look to one minute bars. Also, I do not limit my entries and exits to the bars themselves. I will enter near a low or high S/R area if the set up is right regardless of how much "time" is left in a bar. I seem to be better able to judge what is going on when I view the PA grouped into 5 minute intervals of data.


Sorry for any trouble caused.
  • #10,818
  • Mar 13, 2016 4:43pm Mar 13, 2016 4:43pm
Quoting ddaytrader
{quote} I do not look to one minute bars. Also, I do not limit my entries and exits to the bars themselves. I will enter near a low or high S/R area if the set up is right regardless of how much "time" is left in a bar. I seem to be better able to judge what is going on when I view the PA grouped into 5 minute intervals of data. Today was slow, but it gave a few good set ups. I missed them, imo, because they were harder for me to read using, ironically, the RTH chart. That large gap distorted the scaling, and I should have adjusted it - a real rookie...
Don't get too bogged down on RTH vs globex stuff. I've looked at them extensively and there is no right or wrong answer; some days 24hr will prevail, and vice versa. Just choose one and stick to it. Here's what I do. I have my anchor chart with RTH-only, as the most important s/r spots are only formed during the RTH session (for the u.s. indicies). You will rarely find them to flip during globex. On entry I keep 24hr. This is to mark nearby globex high/low which is sometimes respected in the a.m. session as the first reasoning for bulls or bears to get in.
  • #10,819
  • Mar 14, 2016 8:25am Mar 14, 2016 8:25am
Is there anything wrong with my chart ? No movement at all.
  • #10,820
  • Mar 14, 2016 8:52am Mar 14, 2016 8:52am
Quoting moonmist
Is there anything wrong with my chart ? No movement at all.
Did you switch to 06-16? Not much going on, but volume has moved to new month.
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