I was looking at the volume on a 1min chart and 300 seemed to be a good "middle value" to pick. (except in the mornings when there are 1-2,000 volume per minute) What volume would you recommend for YM? 300 volume seemed to produce obvious "waves." It seemed to produce good waves. It matches almost identically the 6WMA you mentioned in another post (i have them both plotted on the chart in my example) You're right, my mistake. I have taken the following notes from this thread about stops (ignoring the "1 tick below" rule you said I was misinterpreting): - close position when stop is hit OR a new wave forms against you (perhaps the fast MA changing color/slope) - price closes below the Fast MA (assuming you're long); a "Natural exit." Maybe I'm misinterpreting those, too. So you use 1 tick below the current low as the stop loss point. I must have misinterpreted that as well from another pic that was posted I think. After reading your reply it makes sense to me now. That's what I'm working on now. My background has been limited to 3 years of investing/swing trading. I'm not "skimming." I've read this thread numerous times and even have another document that I'm taking "notes" in. But an any rate, I'll try to ask better questions from now on. Thanks, tho. I appreciate your help.
jjrvat, Since "stops" are the heart of risk management and therefore consistently profitable trading, I will read any of your thoughts regarding "stops" with interest. regards f9
PBP method followers trading the YM/NQ probably had a fantastic day today. As for myself, I developed bad habits in trying to pick bottoms and tops. I studied so many different methods that I need to get rid of garbage, and just stick to price action. I was not able to put a single trade on as I watched in disbelief as NQ grinded lower all day. Listening to traders pit audio didn't help either. Caller kept talking about a big local buying. Price kept going lower. Should have just watched the chart and trend. Back to reading this thread from page 1, and just stick to what makes sense. Follow the larger trend, and ride the wave.
Actually the last two days had been absolutely amazing for both NQ/ES traders. Yesterday traded the ES, a winner after winner to the long side and today all winners, to the short side, didn't have even one losing trade. I'll post a chart later of today trades. You really can't ask for more
Hi all, as I promised a chart of my trades today. Traded the SPY since I had problems with my futures data vendor. The chart below is a 0.1 range bar chart I use for wave analysis. Enteries and stops are based on 1 min chart with Haikin Ashi display (which is, very recommanded, BTW, for better visualization of price action). Exits are fixed, first exit at 11C, second exit is 20C or B/E whatever comes first. Few things to notice on the chart: 1) Most trades are pure wave analysis exept trade 3 and 4 which are reversals that are based on Volatility Stop (the Black and White straight lines). 2) I usually ignore the slower WMA in the first hour or so, of trading since the gaps in the spy pretty much corrupt it in the first hours of the day. In this time I use pure wave analysis. 3) I don't enter twice in the same wave, but if I entered and exited and the wave hadn't started yet I will enter again (see trades 6&7 and 9&10) 4) For your convinience I've numbered the trades on the chart. That's it, I had a great day. The only trade I feel sorry about is 11 where a spike stopped my on B/E on the second half and then the SPY immdietly collepsed and made almost 1$ from my entry point in just a few minutes. Trade results: 1,2,3,4,5,8,10,13: Full winners (11C and 20C). 6,7,9,11,12: Half winners (11C and B/E).
Amitman, Thanks for posting your trades. How are you defining a wave? Are you defining it based on price moving above and below the 240 wma? Floyd
Really? I'm not sure about H/A candlesticks because they aren't showing you the actual price. H/A is derived through a formula instead of showing actual price data. I used to have a link to an article explaining why you shouldn't use them, but I don't seem to be able to find it now. I'll keep looking. I had it bookmarked on another computer. Of course, if it's working for you, keep it up!
Hi, I define a wave by a change of slope of the 17HMA, the changes are marked with black and white candelsticks on the chart, black candelstick = slope changed down, white cadelstick = slope change up. You're right, therefore I look on a "normal" 1min chart too but since my entries are based on Highs and Lows H/A are good since their highs and lows are the actual price and not something calculated, and H/A give the advantage of seeing better if the current move is up or down and how strong it is. I'll refer you to the AHG thread where Anekdaton examples are H/A charts and you'll see how clear the charts look. The AHG theard: http://www.elitetrader.com/vb/showthread.php?s=&threadid=99283&highlight=ahg
re Heikin-Ashi Hi there, You may want to read these comments. http://www.ensignsoftware.com/tips/tradingtips57.htm regards f9
Thank you, fortunatly the things that bothers him in H/A charts are exactly the reasons I use this charts for so the article really encouraged me in keep using them and understanding them better. I don't think it's an "holy grail" or something but I think you can definately use it as a visual aid.