Hi Geez, I attached a chart of the FAZ trade that you took @ 11:41. I have a few questions regarding your entry. Can you please see the attachment for my questions? Thank you, gotta_trade
Low at 11.15 was lower than low of 10:30 & 10:50 ; so does not make perfect setup for LONG. Low at 11:45 was higher than last low i.e. 11.15 ; possibly a better setup for GEEZ's LONG. <img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=2441276" width="600" height="480" />
Another question - what are the best trading hours if someone does not have full 6:30 hours available for day trading? Thanks,
I'm going to take a shot at this even though I'm likely to be wrong, so keep that in mind. first, if i'm reading your notes right, the green bar your pointing out(11:10) made a lower low than the previous bar. Notice the bar Geez used to trigger his entry never broke the low of the previous bar of 11:35. Then he used the bar your refering to as his stop point. Another thing about that 11:10 bar is where would you stop? Looks to me like 11.06 would have been the spot, so about a .20 stop. I believe the 11:40 bar breaking the hi of the 11:35 bar was the trigger to enter.(?) But, this makes me wonder what if the price reversed before 11;45? In other words, Geez went long before that bar was completed, so what if the lo from the 11:35 would have been taken out? Does that any sense, lol!? Hopefully Geez will chime in and help us.
Thank You gotta_trade, I just got on to my computer at the office and wanted to post the FAS chart from today. I felt there would be questions regarding this trade and it's also one of my favorite setups. I'm going to use your chart to answer the questions and tell you what I saw: First off, the daily chart of most stocks gave me a long bias this morning and the way the indexes moved up early on, I was looking for some pullbacks to get long. Second, Mike Morrison is right on why I did not buy the first pullback you asked about at 11:15. It broke the prior pivot low that was made at 10:30, so this voided any long for me. The rally from this tops out and puts a lower high in at 11:30. Alot of traders would short this lower high, but because this is the first day of a strong rally after a few days of pulling back and the market is in a short term uptrend, i want to be long on a day like this. So I wait for ANY higher low that comes off of this.The reason I like this so much is you also catch the traders who are short, causing a short squeeze when we move back up. The 11:40 bar breaks above the 11:35 bar, that is my signal to buy, putting the stop below the pivot that was just made at 11:35. The smallest stop I take is a .10 stop, so my stop was 9.23 and my target 9.53. Just to clarify it again...the #1 reason for this trade is the daily chart of the indexes. A few days of pulling back in a short term uptrend, followed by a very strong opening move today on the first day of a rally. So I want to be aggressive to the long side. hope that helps.-G Here is the chart:
TraderSU, In a nice moving market I would want to trade 9:30 a.m. to 11:00 everyday, then 2pm to 3:30 pm.