I again observed a nice exhaustion bar, if anybody really looking for a long in this downtrend (or an exitpoint...) it`s more secure to wait for such a bar, look at this large bar with the highest volume of the day, nothing is perfect, market did not turn immediately, but chances of a turn are always very good, exhaustion bar has to be 50-80% larger as any bars the last 1-2 hours and volume highest the last 1-2 hours(of day is of course the best...)
if ur intraday trading emini's anything you learn is dangerous to your pocketbook......for the first few years........and then u find u don't need what you learned.....because you learned what everybody else learned and rarely is anybody else in the business for long..........just facts, not fiction........
As soon as I have an open position, I switch to T&S monitoring, occasionally checking charts. It was not obvious to me on a 5 minute chart nor on T&S, though 20 minute one came up with a sign of a possible reversal.
@romik I made the work and did apply different fixed pointstops in a strategy of mine to show the effects of different stopsizes in this strategy. It`s a breakoutstrategy on the YM, trading with the trend, close MOC or trail later in the day, the equitycurve shows 3 years of trades beginning spring 2003. First with the original volatilitybased Stop, so i can not say how large, some day smaller, some day much larger, but much larger as you would like it... next with a 10 point fixed stop, this reduced the netprofit down to 50%, also drawdown is the biggest. next with a 20 point fixed stop, not good at all in 2003 cause the higher Volatility. next a 30 point stop, picture looks better.. next a 40 point stop, looks more better last pic the P/L with a fixed 40 point stop. And what you probably don`t want to hear, the (marginal higher...) highest netprofit is without ANY initial stop, also the lowest drawdown, but later in the trade are some trailingstops working, so there are some stops later... So for this system small stops and fixed sized stops are not useful and as with some other strategies you get the highest netprofit AND lowest drawdown without any stop....It`s more a psychological and worst case thing to use a stop here.... So I could argue, if you have to use small stops or stops at all, you probably have not yet found an edge or a working system, otherwise could porgie argue my system is not good cause i can not use a 10 point YM stop, anyway.... The stopsize, if small, or large, or even only as a worst case stop is depending of the used strategy, you are trading something different, you have to check your best stopsize for your own, you will not find the answer anywhere on ET or elsewhere, neither you can use any advice from any other trader, cause you don`t trade his strategy... greetings Michael
when you solve the riddle you have the answer.........knowing the market is a trap......no one knows what the next bar brings so how can you "know" the market? i said know not probability........of being correct.......that is as close as u can get..........
I dont think anyone here is claiming to know for a fact what the market will do. Just looking for consistent signals of entries which are more probable than not to produce profits....
Michael, I will take it upon myself, if we don't get a sloppy session, to prove to you tomorrow in real-time that small size stops work , we can do it over Yahoo Messenger if you wish or I can post them here, if B1S2 doesn't mind.