Here is an attachment for YM this AM. Two channels occurred in the AM as shown on 3 min chart. 5 min is better to use. Channels are classic as they begiin with one pace (take off) and revert to slower pace (cruising). Point 3a is the initial point; Point 3b is the cruising point. What widens channels os not the left side of the channel. It is the right side. The first five trades were in the 95 point short opening channel. The first three were short (7, 4, 12) and the next two were long (8, 2). The duration of the trades compared to the 1 hour long trend (95 points) was brief. To max the channel and use it for shorter trades (3) you nail an additional 20 points for 115 points. The channel stalled telling you to expect a dip to reverse on for the second (within the channel) trade. MACD verified this with four consecutive signals. You reverse at new point 3 using MACD set of signals again. Stall in the down leg tells you that a dip will follow and it is verified on the MACD again same way. On stalls the fast and slow MACD lines are parallel. Break out of first channel using point 3b. Happens and at that time you are long already. your entry you now note as point 1, you find that the BO is point 2. You look for first point 3. You get it. And you look for new point 3. A stall occurs and you expect a dip. The dip comes and is followed by handle and you have new point 3 (3b). This is difficult for beeginners. They would choose the dip as point 3b. If they did and were confident they would sideline at the BO through their right line. Beginners usually enter on first point 3. Using the indicators of this journal beginners have no other choice. Four set ups are the basis of this journal. They are veryt price oriented and even then formations are not key nor are channels. Both point 3b's are the same value. a person who reasons can see this as a new support level. When you do, then you can renter long and this becomes a new point 1. Experts would trade the second channel by reversing onpoint 2, reversing on the dipand slalom trade to the spike. the spike is a 1 min deal using a "change strategy". up to 3b the second channel yields about 70 points. Add that to the 115 and you are running 190 going into the base of the 60 plus point spike.
heres the rest of the day. Popping in and out is not what makes money. you can tap up a bunch of points here to get 400 to 500 quite easily as a beginner of intermediate. Expertscan't use this chart set up to make money. We are in a multiple of daily H/l as beginners.
Jack, that post is very helpful. This is what I get from this post. In a breakout you draw the initial point 1-2-3. This is the takeoff channel. After this you draw a new point 3 and this is the longer term(cruising) channel. If this channel is broken then you would consider a reverse, correct?
You figure out the right side of the market. That means putting point 1 on the chart. I admit personally that I am a hairy trader so I go in by 9:45 by letting the market take me in. So I am in on the third 5 min bar or if I were you doing YM on the BO down fourth bar. Point 2 comes then and then point 3. We all are in well before point 3. This is the take off channel. Yes next point 3 is the cruising wider channel The reversals are done with precision. pre cis ion. On that first leg down to the day's bottom, expert's ski it for about 115 points. The channel is 95 points but you sneak a few more (20) by slaloming because of the type of channel. Whatever YM's margin is you look to nail a very healthy % of it daily. For now, you should use the BO of the channel formed with new point 3. It will be a historical event for you to trade your first channel in this journal. go for a major major portion of the 95 points. The second channel took all day. And it made twice as much as the first one. I posted the trades in ES elsewhere using an intermediate trigger signal for reversals. See below. The same would have happened here. This is part of a warm up for afterlabor day. I make about 1/2 my yearly ROI after labor day. So I will be posting ahead of the market from that point on. everyone needs to Warm up before they exercise. Ym was about 500 points today as a Summer Monday warm up. I switched my intermediates off their first regime today onto their second one. we dumped the STOC 14, 1,3 and changed over to STOC 5, 2,3. You can see how it integrates with the MACD signals and the volume and the channel stuff. It is just a KISS no Bullshit way to continually make money. There are 5 rules and you can pull them off page 231 on the stochastic thread. It is labelled important. When I ws a Swiss ski instructor we started kids offwith reverse shoulder. Much safer than snow plowing and parallel checking. The stuff on 231 is the safest way to start SCT. How much of margin is 400 points a day in YM? And what is margin there? do a pre flight check every morning on YM it will set you up for SCT real fast. Look at the bottom of the chart and see the reverses all called for by the STOC 5, ,2 ,3.
I was pretty clueless in this market today. I think I need to run and hide when these reports come out. 1. Short 9132 Cover 9151 -19 Was trading the pullback, got caught in the big pop up. 2. Long 9151 Sell 9135 -15 Chased the breakout, very dumb trade. 3. Short 9165 Cover 9144 +21 Traded the breakdown of support on the big pop up, got lucky and was on the right side of another crazy move. 4. Long 9114 Sell 9106 -8 Traded the reversal, but held to long. Could have sold for a decent profit, but got greedy and ignored signals to sell. Covered after another quick drop. This is a good trade that I screwed up with poor exit technique. 5. Short 9099 Cover 9089 +10 Hopped on the big down move, seemed to be the way to go today, but was more aggresive with exits. 6. Short 9095 Cover 9089 +6 Pullback trade, by now I am in scalping mode so very quick to take profits. 7. Long 9111 Sell 9126 +15 Smartest trade of the day, traded divergence on the 5-min chart. Day +10. I can't believe I came out ahead today(BE after commissions). Overtraded again, tomorrow I am not even going to look at a 1 minute chart. Jack, I switched to the 5 min at your suggestion, I need to trade way less so this is probably a good idea.
I should only have made 3 trades today. 1 and 2 are simple pullback trades, and 3 was my last trade of the day. I should have ignored that whole mess at 10AM. I was too busy with my nose in the 1-min chart today to see these simple trades.
One thing I do in the post-mortem, which you also might like, is to also note the best exit method for the best trades.
check out how STOC keeps your from hair trifggering on stuff that is just flak. the keltner ws being hit at end. This is called a climax run. You are now ready for your flight check. an one step closer to dumping whatever you used to trade today. you reflective post is a break through possibly. For you to hold a flawless trade for any length of time is an extremely difficult task. there is a guy here who nets 1.5 points a dayon average on the ES. He made 10 points today by some means and it does not affect his average. you want to get way out of that boat. 30 points here is 3 pts in ES.
Well after yesterday I finally gave in and started checking the economic calendar. We were all in the clear today. I decided to give Jacks method a try today. I probably misenterpreted it so the poor results are my fault, most likely. TRADES 1. Short 8999 Cover 9020 -21 At this point I had a brief conversation with myself. Smart B: Hey Stupid! What the hell are you doing? Stupid B: Huh? Smart B: Was something wrong with your trading when you started this thread? Stupid B: Well, no.... Smart B: Then why are you changing it? Stupid B: Uh.... Smart B: Get out your 3 and 1 min charts, put on your triggerfinger hat, and get to work! Stupid B: Yes, sir. It took me a few trades to calm down but pretty soon I got back into my groove. Jack, I plan to keep learning your method, but for now I think this way of trading suits my personality better. Trades are in next post.