Anek, In most of your entries, do you think it is best to get in 1 tick above high/low of prior bar or wait for the closing bar (after completed bar so tick/volume/minute counter require) to be above/below prior bar's high/low. The reason I ask is because the more confirmation, the bigger the stop or is it not? thanks J
Sorry if this is a stupid question, but how do you know when you're entering a choppy period? I mean, it's easy to look back and say "wow, that was choppy," but how do you know a trend is ending and you're starting to go sideways? Sometimes it's pretty obvious, like pre-market this morning, but sometimes the swings are big enough with enough breakout to make you think a new trend was starting. I could improve my P&L a lot if I knew the answer to that. I asked this question in another thread I started and basically the answer I got was it can't be done.
Bluedemon...no easy answer..the best I can provide is.....screentime.....and reading the tape.... After a while of watching one particular market long enough..you will eventually begin to feel it's tempo and know when the time is about right to enter trades.. Others may want to chime in also.
...simply answer that timeless question and the rest is easy ... every trend following thread on ET eventually runs into this abstruse barrier to unlimited success and wealth...
One tell-tale way is when the market makes higher lows and lower highs ( or vice versa ), ie. it starts to form a wedge pattern. As the wedge becomes more defined draw it with it out trend lines. Until it breaks and the candle closes stand aside, you with just get chopped up. The alternative is to trade the bounces off the wedge, but this is real high risk. I hope this helps.
Blue, You don't know until it happens so worse case scenario you take your small loss if you were in a trade. The highs and the lows with no definite winning side should be the first sign. There are patterns that form during consolidation that will also alert you at staying on the sidelines and only a confirmation of breakout out of consolidation should tell you to get back in. Trend, I wrote at the very first post of this journal than on extremely choppy days I lose money. Anek
It sounds like you're describing a symmetrical triangle or something else? Like this morning, so far (about 11 AM Eastern time now), the ES is in a modest uptrend, but in a very narrow channel, like a 3 point spread from peak to valley. I decided to stay out until it does something more dramatic. Would you guys stay out or jump in at the bottom of a channel and hope you gain enough before the channel breaks down? With a tight stop I guess that wouldn't be too risky, but it doesn't seem worth the small reward, especially so close to the record high.
The ES is trapped in a 5 point range at all time highs, no surprise there. You can either ping pong the extremes with miniature stops or.... Wait for breakout bar + 1 tick outside the range, preferably to the upside. Anek
Hi Anek, I downloaded the paint bar for the strong and weak bar but I don't see any difference what should I be looking for? I use tradestations candlestick charts without the trend, If this helps