I have been testing a new way to re-arrange my charts, made possible by the new monitor I bought last Friday. Previously I had been using the 5 minute chart to get my setup, then I switched to the 1 min or 3 min chart to time a better entry. This almost always resulted in a loss. I think it was because there wasn't any time to study what the LTF chart was doing. Today I put the 5 min chart above the 1 min chart and was able to watch both charts paint simultaneously. I still need lots of practice with this, but it seemed to be a major improvement. The only negative thing today about trading this way was I reverted back to moving my stop to BE quickly. I left a lot of money on the table doing this, but I also made a little for a change. We'll see what tomorrow brings. I mainly concentrated on the CL today. My one 6E trade just didn't work out, and I missed 2 other trades because I wasn't paying close attention. The range was bad today on the Euro and there weren't many opportunities for my setup. 6E Trade #1 The market popped out of its channel and made a new high. It retreated back to the EMA and I was looking for a long entry. There were 4 red candles that brought the market down to the EMA. The 4th candle was a high volume hammer that rejected the EMA. I entered a buy stop 1 tick above that, was filled and killed on the next bar as the Euro started down. -8 ticks. On CL, the early morning was range bound, and I didn't see any entries. After the market broke the overnight high, I thought a new trend was starting, and was looking for a long entry. Waited for the oil report. CL Trade #1 After the oil report, price seemed to hold up. The 08:00 bar was a doji, which I don't like, but did close above the EMA. Went long at 91.38 and kept a close watch. The market went up, then turned right around. +1 tick. CL Trade #2 Got 3 red candles making LH's and LL's. The 08:20 bar was a lame hammer that closed just under the EMA. Went short at 91.23 and since the two previous bars overlapped so much, I was watching for a failure. +2 ticks. CL Trade #3 The only thing that concerned me on this trade was the pivot low support made during the oil report. This trade was very close to that. I figured that if support didn't hold, the next stop would be 90.52. Was looking for either the bottom falling out or a quick scalp. +10 ticks. CL Trade #4 I wanted back in that trade after the pullback, so went short at 90.88. Didn't manage it very well. +1 tick. CL Trade #5 The 09:20 bar punctured the 90.62 support and came back up. Went short looking for another push down, and the bottom falling out. I got 14 ticks, then moved my stop to +10 as the market retraced right back to my entry. THEN the bottom dropped out! +10 ticks. I was listening to a web cast the other day, and the person said that new traders take profits too soon because they're looking for immediate gratification. Sounds like me. Tomorrow is another day.
Frank, enjoy following your thread,...but this chart,.....is killing me,....I waited for a pierce of 92 yesterday to go short, Have it written down still @ 92.04 entry,...... had to pee, came back, hit my level, (I never place an order when I'm not there), wouldn't you know it.....and, of course,.....you guys went out to play without me. Keep up the good work,.....I enjoy reading it. Thank You
Frank, you are spot on there. When I started trading CL I did the same thing. When you prepare your order to put on the trade, KNOW in advance your levels. Have all S/R levels, minor and major, as well as levels where S could become R (and vice versa) in a trend noted in writing and in front of you at all times. Then allow the trade to work its way to at least an initial target zone before grabbing a profit. I got some trading in today because my visitors are not arriving till later. I shorted 91.00 exactly where you did. 90.62 was a key support level to be tested, so that would be my first initial target zone. When that level broke, next zone was 90.47. Buyers stepped in @ 90.54 and I covered @ 90.70. Price remained very weak and I shorted again @ 90.61 just minutes after my previous exit. This was at the same time you shorted @ 90.64. I, too, had yesterday's low noted @ 90.33 and a break of that level was my initial goal. It broke, retested for a twin bottom and I covered @ 90.30. So we had two matching trades and very different outcomes. Your goals were instant gratification and my goals were minimum technical targets in the direction of the trend. I said this to a friend of mine learning to let winners run in CL: You need the experience of letting a 20-tick profit come all the way back to stop you out break even a few times because it didn't reach your profit target zone. Once you get to where you won't settle for less, you'll start getting a lot more.
oooo, Thank you Doji-san,....That has been a very frustrating part of my oil trades. I have been averaging out mostly, stops 8 - 12 cents, (or above crowd).....PO #1- 15cents, then 20 cents, and 3rd, (I only trade 3's right now) is the main support / resistance level/30 cents based on daily ATR, other things......damn I want to watch someone else trade CL for a couple days,....I know I can get better results,....
Traded with more confidence today, but violated 2 rules and got burned both times. CL traded in 2 narrow bands today, with a drop around the 7am news. CL Trade #1 CL started drifting down, and after a shooting star, there was a big red candle that ended right at the previous pivot low. The next bar broke that, then drifted up. I was looking to join the trend, and went short 91.10 off the 1 min chart. It was a perfect pullback to the EMA with a small bar. Trailed my stop but was taken out. -6 ticks. I watched that pivot low 91.20 get broken with no heat at all. This was my incorrect signal that the market was going lower. I was on the phone during the 7am news and watched 2 entries into that big drop pass me by. My hand was on the mouse, but I didn't want to be distracted in a trade. Both of those entries were clean with almost no heat. CL Trade #2 CL bounced off of yesterday's low and formed a double bottom, then a pullback channel. The 07:55 candle broke out of the channel. I was looking for a test of the low and at least a 15 tick scalp. Placed sell stop under that candle and was stopped out. -8 ticks. CL Trade #3 After the push above the EMA, I was looking for a 50% retrace of the range which was around the 90.95 pivot low. My mistake here was not adjusting my hard target for the pivot (it was set at 30 ticks). I entered on the 1 min chart and trailed my stop. Had 20 MFE. +11 ticks. CL Trade #4 This was a break out trade that I thought I'd try. I've been watching many of these work, or at least provide enough room for a scratch. CL made 2 more pushes up past the EMA until finally on the 10:35 bar it failed to close above. The pivot low formed on my 2nd trade was broken and CL had now formed a LH and LL. I was expecting a test of the LOD, or at least the last pivot low.The 10:45 bar stopped to the tick of the double bottom formed on the last push down. I was aware of that nearby support, but went short anyway (mistake). Entered sell stop 1 tick under and was filled and stopped out. -8 ticks. The mistake I made on this trade and trade #2 was to sell at the bottom of a range. 6E Trade #1 My 6E trade was bad. I had been watching the market trend lower, and instead of selling pullbacks, I tried to sell a retrace of a leg. The main problem was the obvious support at 1.3658 which is exactly where I entered. My incorrect thought process was support becomes resistance, and after the 06:35 bar broke that, it would come back for a test. It did, but kept on going before finally moving in my direction. -8 ticks.
Had to leave in a hurry on Friday for a camp out, so I didn't get a chance to put up my journal. Too ragged out to trade today. Funny what walking 20 miles with a backpack will do to you. This is for Friday, Feb 4th. I wanted to focus more on CL today. Consequently I missed some nice pullback entries on the 6E. No matter. The pre-market in CL was very whippy, and I didn't see a good entry. The 05:30 news caused some big fluctuations, and I wanted to wait for that to die down. The news caused a big drop, but the overnight low of 90.50 held, and CL started to make its way higher. The 06:05 bar was a big green candle, and I was looking for a long trade. Trade #1 Really poor timing here. Still getting a feel for scanning 2 charts simultaneously. Was looking for a pullback entry on the lower time frame chart, but what I managed to do was get caught on the bar's high tick and taken out before price moved higher. -8 ticks. More news coming at 7am, so I waited and watched that triangle form. There were several false breakout probes downward. After the 07:10 bar, price kept forming LH's. I watched that double bottom form right before the price jumped off the cliff. There was no heat on that play, but I didn't take it. Price bounced right off the overnight low before heading down. I was watching price fall, and to be honest, I was dumbstruck and more than a little nervous. It was very violent. Trade #2 I really wanted to get in on this drop, and was watching it on the 1 minute time frame. Found a good place to enter the trend, but got 2 ticks of slip on the entry. I put a sell stop at 90.52 but was filled at 90.50 and stopped out on that bar. -8 ticks. Switched to sim to play that breakout of the 89.20 LOD. Sim Trade #3 Price broke the LOD of 89.20 and I waited for a retracement higher. At the close of the 08:45 bar I entered a sell stop at 89.20 and was filled on the way down for a 30 tick hard target. No heat at all. After price settled down, I switched back to live. Trade #4 Price finally closed above the EMA on a 2 push move. I was looking for a 50% retracement on this move. Bought the first pullback after the close above the EMA, but it was a scratch. +1 tick. Today I definitely let the violent move fluster me. I really, really wanted in on that. I saw some entries earlier, but fear kept me from entering the order. Possibly the best thing I did today was get back on the live horse at the end, even if it was just a scratched trade.
Its not a good idea to try and scan two charts before you enter a daytrade. Believe me I tried with hundreds of others hear on ET, The best compromise for me, I use a 3 minute the first hour or so then a 5 for the rest of the day sometimes on very trendless day even a 8
Yeah, I would agree it's hard to watch multi charts. I two watch 2 markets. CL is one of those markets just just make watching 2 charts really hard. Which ones do you watch ddlee?
DT, as far as market go, I watch the CL (oil) GC (gold) and the SI (silver) futures, but trade only gold and most recently silver