Hi Mark, It seems that this scalping method, with a stop of 1, might small enough to be hit on the subsequent bar, even though that bar ends with a LL, the high on the subsequent bar is sometimes 1 point higher than the entry. I'd be very interested in knowing how this goes realtime, either sim or real. Good luck, and although my question has a skeptical tone, I really appreciate the code, examples, and explanations. A great thread with terrific contributors!
Mark... Another question for ya... I think you might have answered this already but I guess I just wanted to hear it again... In the attached image shows bars marked "A" "B" and "C" -- looking to scalp. (Each horizontal line is one point NQ) Bar "A" paints very fast then the long bar "B" paints very fast as well... no time to react to the signal. Now bar "C" is in the process of painting... Do you tend to jump right in at any point during the creation of bar "C" or wait for a tick below "B" ?? I feel that I would be "chasing" if I were to jump in during bar "C" and looking at a possible falling knife coming my way. And kind of related to this... let's say you pass on this trade but then you keep seeing strong signaling red bars one following another like in this example... do you jump in at any point - under what criteria? Thanks!!
Mark, I see Mo Money Mo Money. It looks like a great signal to scalp the opposite direction. Just like many pattern failures.
Osho, Nothing to do!!!! re-read this one!!!! Edit: On a more serious note, even so I think the above a good suggestion... if you haven't already done so, study Suri's book... Between Anek's and Suri's teachings, you have what all traders strive for.... an edge... Combine that with the proper mind set as outlined in Douglas and you are on the road to success... still think you have nothing to do?
You need to develop a feel for the instrument and what it typically does. When I look at the chart you posted, I think that you are jumping the gun a bit because you aren't considering the bigger picture. Context is everything. Here's a few things you might have considered: Setup 2: The downleg on the left side of the chart that you shorted was the third big wave of selling in that downtrend. I'm not an Elliot Wave practitioner, but generally if you have three big surges of buyers or sellers entering a market with no sizable retracement (I consider 50-78.6 to be sizable), you have to be on the lookout for a reversal or retracement on profit taking, which amounts to the same thing for someone trading as close to the chart as you do. Also, be careful to watch movement rate on your chart, since you use vol charts exclusively. If you look, you'll see price decelerated substantially from 15:05 - 15:10. Setup 3 and 4: This was a good place to look for a pullback instead of buying a breakout. Strong trend down, price slows, you get an initial wave of buying and then a strong wave of buying. A lot of times when you get a countertrend breakout like this, price will probe that previous swing high (the one made at 15:12). These are the moves that flush out impatient and undercapitalized traders. In this case, you got flushed out long, reversed yourself, and then got stopped when the trend resumed. These are the most frustrating situations you can be in. You were right, and lost TWICE! Setup 5: You had a valid long, but where was your stop? I would have put mine behind the swing low that formed the second point in your trendline. Think of it this way - price was so close to that decision point that it had to sniff around there for buyers and sellers. Of course, if you realize that you also want to buy closer to that decision point, as it's a more optimal entry. For example you could have put a buy stop at the previous swing high. Conclusion: When I trade, something that helps me is to wonder whether I'm getting a good price. You want to get a good deal for whatever you're buying or selling, it decreases your chances of being stopped out. You need to wait for price to get cheap before you buy or expensive before you sell. You'll miss trades this way, but in the end it's a safer.
Thank you all for your comments. I noticed in most of the remarks a strong discretionary part. Still need to get the feel of NQ. Will post more charts
Dont think in terms of absolutes. If i tell you 5 bars you will be counting and waiting 5 bars when perhaps bar 2 gave you enough reason to exit. Exit the trade when it does not feel right anymore. I dont have a particular number of bars. P.