Daytrading Breakouts in the ES

Discussion in 'Index Futures' started by Johnny Rotten, Jun 11, 2003.

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  1. Thanks Sim - er, Johnny. Good stuff - I will be looking to incorporate it into my trading. I appreciate you sharing...
     
    #21     Jun 11, 2003
  2. dbphoenix

    dbphoenix

    Believe me, I understand. I wrestled with the 1m for longer than I care to admit, but it wasn't until I started using a longer timeframe for the setup and the 1m for the entry that the synergies began to work.
     
    #22     Jun 11, 2003
  3. dbphoenix

    dbphoenix

    10:15 bar?
     
    #23     Jun 11, 2003
  4. dpanic

    dpanic

    sorry.. mixing time zones. 16:15
     
    #24     Jun 11, 2003
  5. Using my chart times (subtract 6 hours for EST): The 16:10 bar spiked above the top Bollinger Band line. Part one of the criteria is therefore met. Now we must wait for a lower high and a lower low. This occurred on the very next bar at 16:15. It is now safe to buy one tick above the 16:10 high (while checking all the other criteria I listed!). The breakout and actual entry occurred during the 16:25 bar ....3 bars after the 16:10 pivot high. Cleared up?

    One thought just occurred to me. My chart software lists a bar's time as the beginning of the time period. So, for all trades that occur between 16:10 and 16:14 ...my software calls that bar the 16:10 bar. But I believe that MOST software would call it the 16:15 bar i.e. most software uses the end time not the start time.

    This could explain the confusion. WARNING TO ALL: If your software uses the end time of a bar's time period, then add 5 minutes onto everything that I've ever said!! Otherwise you're watching the wrong bar.

    BTW, you misunderstand. I think it's GREAT that you come in and bash Groupie-Boy. He's just an asshole with nothing to say. I was laughing!!:D
     
    #25     Jun 11, 2003
  6. monee

    monee

    I agree db.

    I dumped the 1 and 2 minute charts They would get me in every bit of noise that looked like a setup and get me out on the 1st hiccup.
    If it doesn't setup on the 5 minute I don't want it.
    I think some of the appeal in the smallest timeframes was the small stop but unfortunately small gains went along with it.
     
    #26     Jun 11, 2003
  7. Starting tomorrow, you'll be happy to learn that I'm adjusting my charts to show US Eastern. This should reduce confusion in the future, especially with screenshots.

    But my bar times will still refer to the beginning time not the end time of the bar. That's just the way Sierrachart does it.
     
    #27     Jun 11, 2003
  8. dpanic

    dpanic

    I was looking at my own charts rather than the one you posted. Guess they're sync'ed differently. the 16:10 bar was the one that broke out of the bb however the 16:15 bar had a lo of 2436 which was the same as the 16:10 bar so I was looking for a subsequent bar to break that lo which never happened.

    So I follow, just a difference in our charts to voided the trade from my pov.

    Thanks..
     
    #28     Jun 11, 2003
  9. dbphoenix

    dbphoenix

    Incidentally, you're using much the same market principles as William Dunnigan. Are you familiar with his work from the '50's?
     
    #29     Jun 11, 2003
  10. dbphoenix

    dbphoenix

    I wound up with the 1 and the 3, but the principle's the same.

    As for the tight stops, it really doesn't make any difference how tight the stop is if it keeps getting hit. That's not risk management; it's opening your wallet. The setups on the larger timeframes seem to be more reflective of genuine intent than those on the 1m.

    You also trade a hell of a lot less.
     
    #30     Jun 11, 2003
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