Anek, I noticed a potential short on the chart today, and was unclear why you did not take it. I attached your chart with a couple arrows. The first arrow seems to be a candidate for a short. thanks! jeff
Look how the resistance dots were pushed up constantly. Price had momentum to the upside, was probably waiting for those red dots to form horizontally and stabilize. On top of that I was just coming out of my previous short. Waiting for another pop up for a good fill is logical. Also notice how my shorts are usually taken when the resistance dots are pulled down instead of up. Increases accuracy, you want to short a pop up but the pop up must at least begin some DOWNSIDE momentum, or at least I try to. Examine what happened next, resistance dots stabilized, momentum shifted to the downside, and weeee off we go, and that one I took. Anek
After massive consolidation around the LOWS in late night afterhours ES just broke resistance and moved a few ticks up. Expecting some rally after that extended congestion period I have elected to cover my shorts and call it a day/night. Forgot to mark the mini breakout out of consolidation at the end of the chart but should be obvious to notice. I'm very pleased with this trade and should be a good demonstration that when you are taking a position whether is long or short there should be a reason for bailing. Since we don't call tops and bottoms we can't say "I think it had enough" because you never know, let price action decide. This was a monster trade, aprox 13-14 full points, have not even calculated, all i know is that I need a bed. Have a good night all. Anek PS: Notice volume bar adjustment to make up for low AH activity.
Sure enough the ES rallied to make higher highs confirming that price action and the trend are your best odds in trading. Continuation attached, yep bed time Anek
Trading can be addictive. Woke up for a glass of water, saw a play and had to take it. Might take tomorrow off for a long weekend with the family. If so back on Monday. Be good, and follow that trend. Anek
Hi Anek, Do you typically sell into strength on an uptrend(or set a very tight trailing stop once a price objective has been met)??? I am finding that if you sell on a pullback,you will often sell very close to the 50% retracement of the prior swing...Or where we should be buying!!! I should mention that traditional indicators do have merit,just not the way we have been led to believe.I recently purchased a product which can run thru thousands of permutations on indicators,and more often than not,the best approach to applying an indicator was the exact opposite of "conventional wisdom".As an example,if one is trading %D,it is best to go long when %D crosses 80 to the DOWNSIDE. If you think about it,it is exactly the point you have been making. tao
i had been following your writing for a few days...fascinated by what you are doing... can you tell me how you come up with those resistance dts. if possible give me the code for plotting those dots.. if anybody else can share that would be gr8 ...i am trying to learn and on simulator for now.
Theres the old saying that if a triangle breaks one way then reverses and goes out the other side you want to get on board. Sure was the case today but I didnt do any longs. Only had one more short late in the afternoon but overall a very nice day. I am now using a 50k volume chart for primary trend and taking trades in accordence with the hi/lo sequences I see there using a 10k chart for entry. The 5k is a little too fast for me. Cuts down on the number of trades but increases the winners. My win rate has been up pretty dramatically lately but Im sure its because of the overall downtrend. Hard not to make money in a strong downtrend unless your a new trade in which case its easy to lose in any kind of market. Been there, done that. Have a good weekend.