Do you tend to wait for counter trend movements to enter a position?

Discussion in 'Trading' started by zghorner, Jul 31, 2022.

  1. %%
    YES, but not as much as main trend/200 day moving average.
    I dont do stocks less than $5 or much private email+ those trends to sloppy, choppy,goofy %.
    Bottom line \SPXU is still below 200dma\ good\ theyre still selling it\ monday:caution::caution:
     
    #41     Aug 1, 2022
    zghorner likes this.
  2. taowave

    taowave

    Sounds like a Mark Minervini approach to derivatives

     
    #42     Aug 1, 2022
    zghorner likes this.
  3. The way you people talk about trading you must be making millions needing massive trends.

    Today's RTH range on ES was ~45 points.

    You couldn't get 20% of that? 50%? Seriously?
     
    #43     Aug 1, 2022
  4. zghorner

    zghorner

    Haha damn, roasted.
     
    #44     Aug 1, 2022
  5. Aisone

    Aisone

    I find jumping into a slow trend too stressful, couldn't do it if I tried. Much prefer counter-trading fast markets (which can be stressful too of course.)
     
    #45     Aug 1, 2022
  6. easymon1

    easymon1

    When you're right you're right, lol.
    I copied that chart in from elsewhere on ET.
    https://www.elitetrader.com/et/thre...ding-and-sector-rotation.367990/#post-5623657

    By the way, look at his entry in Solid Trading Plan thread. Looks like he's done this before?
    https://www.elitetrader.com/et/thre...solid-trading-plan.340340/page-2#post-5011924

    Anyhoo...
    Here's one that might shed some light on your question.
    Do you tend to wait for counter trend movements to enter a position?
    The answer's below...

    Couple ways to enter that double top,

    https://www.elitetrader.com/et/threads/charts-for-no-reason.344272/page-26#post-5624812

    one as a breakout entry short after close below the neckline, and set the stop according to Hoyle up there just below 3.84.

    Another of a million ways could be to wait for a retrace pullup to resistance after what is often used as a standard way to determine trend, badabing - lower high, bodaboom - lower low. Stuff everybody knows.

    Now if ya wanna wait for a pullup to the neckline, maybe watch for a hammer or an engulfing at that level of what's now resistance. An entry around 9:35 to 10:00 or so, gets a trader a mobettah stop spread say maybe above that hammer around 9:00. Now if you are position sizing

    https://www.elitetrader.com/et/thre...t-right-here-baby.335635/page-25#post-5549800

    based on Stop Spread, that retrace pullup to resistance gives you a significant improvement and lets you get more shares for the same loss if you get stopped out vs that stop way the hell up there just below 3.84.

    The measurement in blue as shown is for the breakout entry, but either entry made some frogs. The intrepid trader that does his stats will have the answer to that setup / trigger and whether it works in his hands. If so, trow it in the toolbox watch for it and move on.
    You even get a measured move target(s) out of the deal.

    There are a couple more down that page w/same idea, and peppered all over that Charts for no Reason thread.

    Trow moving averages on there, pivots and or other crap if you wanna, trow an oscillator or whatnot on there if ya wanna, but a cluttered chart can be an unnecessary pain in the ass.
    As with life in general, ymmv.

    Hammer
    https://www.elitetrader.com/et/thre...t-right-here-baby.335635/page-29#post-5646944
     
    Last edited: Aug 1, 2022
    #46     Aug 1, 2022
    zghorner likes this.
  7. Yes! Definitely wait for a retracement before entering. My research has shown this will increase your strategy's performance significantly. Many novice traders feel the need to chase price and enter their positions as price is moving in the direction that they enter. They often get hit by the retracement, and if they have over-leveraged (another rookie mistake), then they are forced to exit their position during the retracement, only to later see price go in the direction they had hoped for after they are out of their position. Instead sit tight and then enter on a decent retracement (20% to 30% for me). Hope this helps.
     
    #47     Aug 2, 2022
    zghorner and SunTrader like this.
  8. zdreg

    zdreg

    Any parallels to marriage is purely coincidental.:D
     
    #48     Aug 2, 2022
    zghorner likes this.
  9. zghorner

    zghorner

    lmao so stupid man
     
    #49     Aug 2, 2022
  10. easymon1

    easymon1

    Do your stats
    What's the dif in your lingo between "retracements" and "counter trend movements"? (Do you tend to wait for counter trend movements to enter a position?)
    What timeframe charts are you trading?
     
    #50     Aug 2, 2022