What I stated prior was that inevitably when price fails, say, to move higher thru its 1 minute box it will go look for support at 5 minute all the way to the longest TF etc (understanding it can bounce, drop, or consolidate)
Imo (really in fact) you’re approaching your analysis… and trading – bassakwards
FIRST – always identify S/R on the 1hr (horizontally and diagonally) – THEN – drill down into your lower TFs, with this information…, to understand where price is / and what it is doing - on your trading TF
Always keep/ view/ trade the lower TF S&Rs / price movements in relationship to the bigger TF (1 hr in your case)
Never the other way around
Think.. analyze… trade – Top down… never Bottom up
And even though your trading TF (the 5 min) is next to the lowest – always keep the bigger picture in mind… and in accordance with – your trading actions on the 5 min
Btw 1 hr is fine for your longer intraday TF…, BUT never be hesitant to change your longer (1 hr) TF for a better read (eg 30 min.. or possibly multiple hr – such as a 2…, 3…, or 4 hr chart) hint… hint…
I get how price builds on itself in different timeframes, though obviously not how to take advantage of the ambush points.
But I do see the elephant footprints.
If you still don't get my struggles, it is simple. We know how price moves but we never know how far it'll go. I can be right on a move but it could go 2 cents and I want to find (and struggle to find) the 2 dollar moves. (often early in the day too)
If you understand where a trend (move in my vernacular) starts and ends – then why is not the place where it ends – your target
I’ve posted how to identify targets in two previous posts…, you’ve stated you understand when a trend (move in my vernacular) ends….
Think though and elaborate on this one please – specifically the dilemma you’re encountering identifying a profit target
On a different note - missing the 2 dollar moves (moves early in the morning) - thought it was a fear of missing out btw - is something you'll need to get a handle on and develop some patience for
Look at it this way - that two dollar move - could just as well end up being a two dollar loss at this stage - better to miss it - than get bit in the ass from it
Ambush points, like confluence without the mumbo jumbo indicators right? Is this the only time I should get in a trade?
In other words, when price has not failed on any TF.
Ambush setups are the most straightforward(**) trading there is
They are not momo trades… nor are they pseudo scalps (trading pullbacks/ tight ranges/ counter trend) nor are they reversion to a mean – all of which require complete dexterity…, and more experience
Ambush trades are straight up – identify a set up – wait for the set up to materialize – trade it – it either works or not…. On to the next one
It does not include any trading off the 1 minute at the open – in fact you need to wait till the initial (opening) push – which is typically counter to the way price ultimately moves – is over
Ever hear the high/ low is typically made in the first 30/ 45 min – well it is most of the time.., then of course price heads the other way for awhile...
Way better to catch this second move..., than be bit in the ass by the initial move
Losses not only extract money from us... they also extract psychological capital - which until we develop the proper mindset, affects us the rest of the day .. Possibly even week, month, year, lifetime
Each time you take a shot (trade) - make it count
The predominant action - a trader takes - every day - is sitting on our hands
Please take this last statement to heart
(**) NOTE; I wanted to use the word easy in place of straightforward…, but until your mind is right…, none of this is easy (been there and done that)
Also I have developed a trading plan several times, but then learn more and outgrow the methodology. I'm about ready to give it another go.
I just started scanning for stocks within 5% their 52 week high. I figure there is guaranteed interest in these, so human emotion is involved => opportunity. This should eliminate the real duds. I also have a couple intraday filters to find stocks that have moved 1-2 dollars and then consolidated.
It seems important to find stocks I like on a daily chart and monitor a few for setups intraday. I just started at a prop firm in Chicago and was watching new hi/lo scrollers then trying to analyze its past on the go. Seemed inefficient so I flipped it around.
No you didn’t make a plan – then “outgrow” the damn thing (ever heard the term revise)
I know exactly why you abandoned it
Make a flippin plan – trade it – revise it, OFF trading hours – till it works - then stick to it
In it, identify your set ups in such detail that a dumbass redneck could understand it/ them – or a 5 yo – take your pick
Know your set ups like the back of your hand..
Follow your plan come hell or high water
And of course revise it – as necessary – off trading hours only
But before revising - absolutely know it is the plan that is deficient.. and not simply a matter of an idiot executing the plan poorly (no offense intended)
Intraday – I don’t scan for stocks – I trade a very small universe… and typically I trade one stock repeatedly for a period of months – then move to the next one
I’m not out to be a hero… I trade to make money… one of my advantages is knowing the typical behavior of what I’m trading.
I know its typical behavior because we meet up every day – for months on end