I know for confirmation we want to look at the close of the bar. What about when defining highs and lows for trend determination? For example a lower low is made by a wick, but not by the close. Is it still considered a lower low?
Anek, For each contract, do you watch both charts? For example, do you use both the 2500 & 5000 charts on the same day to trade the ES? Is one more important to you, or is it just dependant on that days' volume? Thanks.
Excellent question. I began this journal nearly three months ago and I believe this is the first time someone asks this so kudos for that. The answer is no, for it to be a lower low I need to see a close. Anek
It's dependent on the day's volume and since I don't know how volume will be on that particular day I will simply play the chart that has more clarity. Anek
Quote from JtraderK8: Anek, When trading the Emini futures (ES, YM,etc), do you tend to switch back and forth between 24hr and pit session (930-415) depending the upcoming news event? Or do you keep all days the same? For example, last Tuesday, we did not have any major news in the market while Monday, Wednesday and Thursday, there were major news announcements. So in the latter, you would use 24 hr session. What has been your experience? thanks JtraderK8 -------------------------------------------------------------------------------- Not at all, don't even pay attention to that. Anek Anek, Wanting to be sure I understand your answer here, are you saying you don't pay attention to most news(which I've seen you say before), or that you don't pay attention to the 24 hr session. Specifically, I'm trying to figure out if there is any value to the data on the chart before pit hours. Thanks
Walter, Globex low and globex high can be an area of congestion, support or resistance. Yet, how is this different from any other congestion, support or resistance so I treat it like any other. Pivots the same. Price action skills will prepare you for this, whatever it might be. I don't care for news but sometimes I read about them after the fact as instructive or curiosity value definitely not trading value. Anek
I'm talking stocks right now. Will probably switch to futures after I do a lot of research and gain more experience with them. So let's say a stock is in an uptrend and you're looking to buy during a pullback. What if a bar finally closes above the previous bar, but it is a down bar. (caused by a gap higher open). Is that still a valid bar to go long, or should you wait for an up bar?
Mac Question is too broad, would need to see a screenshot to examine price action and all of its surroundings. Anek
From earlier thread: Anek said: "When you see a TL break (and that's a close) and the last high was a LOWER high, imho, don't wait for the swing low to be taken out, just take it now. Small risk, good reward play". When you say "lower high" do you mean the wick is lower or the close is lower? I thought I saw some charts where it appeared you were paying more attention to the wick to determine if it was a lower high. I promise I won't ask anymore questions tonight.
Mac, Sure. Imagine an uptrend that starts showing signs of exhaustion. For instance, failing to create a higher high on that last swing and actually plotting a lower high (not even a double top). This tells you something, this is your first confirmation, not enough though because it could be consolidation. Then as you closely examine the price action you see a bar close below a flexible (not too tight) trendline. Not a wick, not a spinning top but something that convincingly says, I'm closing this below this area. Mark the low of the candle, and when a tick prints below that closing bar low that creates a good reward low risk short play scalp assuming the next support area is not too close. Anek