ES Journal Archive (2011)

Discussion in 'Journals' started by Buy1Sell2, Jan 3, 2011.

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  1. feng456

    feng456

    gap didnt fill according to my charts. friday's close was 19.00. LOD today so far is 19.25
     
    #2221     Feb 28, 2011
  2. Pekelo

    Pekelo

    [facepalm]

    You are complaining about 1 tick as gap left? (Cash had 3 ticks crack left, and as we know the rule is based on the cash action)

    Less than a point is not a gap. Anything above 1325 ES was a gift to short this morning with a guaranted 5+ points return, based on the 2nd gap rule...
     
    #2222     Feb 28, 2011
  3. feng456

    feng456

    u have different definitions of what a gap is then.
     
    #2223     Feb 28, 2011
  4. Pekelo

    Pekelo

    Let's repost my 3 weeks old "How the market will move from here" chart.... I put a dot where we are currently for those, who still don't get it....

    [​IMG]

     
    #2224     Feb 28, 2011
  5. NoDoji

    NoDoji

    ES runs both ways. The reason it bounced so nicely off the low is because 1298 was the trend line touch and when buyers stepped in ABOVE the next support level to be tested (1291.50) and bid it up to close above the trend line, that means the trend is intact.

    ES has been in a long up trend and the price action tells you the trend is intact.

    You can make money shorting when a previous day's low becomes resistance following a run up to the upper channel line (overbought/overextended) such as when Friday's 1235 low became resistance last Tuesday, and you can make money buying the pullback to the 20-day MA (which provided a small bounce, but quickly failed), then make money shorting for the remaining pullback to the trend line (Wed thru Thursday), then make money buying on Friday when the trend appears intact.

    Bulls need to see 1340's before the 1290's again, IMHO, or we have a short term trend reversal signal.
     
    #2225     Feb 28, 2011
  6. #2226     Feb 28, 2011
  7. sponge

    sponge

    Just curious for your reasoning behind a 20 period MA providing support during a pullback, as opposed to support that is created by actual price. And why 20, not 19 or 21?
     
    #2227     Feb 28, 2011
  8. NoDoji

    NoDoji

    In an uptrend I look for support at or near the 20-period MA, but I put on the trade when price breaks a previous bar high after price appears to have established support there.

    The 20-bar MA is a frequently-used mobile S/R level in a trend. If price a) finds support above it in a strong uptrend via buyers bidding up through a previous bar's high above the 20-period MA, or b) finds support at it in an uptrend, via buyers bidding price up through a previous bar's high off the 20-period MA, or c) price breaks the 20-period MA, but only by a little and then breaks the previous bar's high, taking it back up through the 20-period MA (this is a bear trap "golden" setup for me), I will take all these as long signals.

    I have no problem taking a loss off these setups, and will quickly switch sides once a previous with-trend pivot low is breached.

    It's a game of probabilities and the more you trust the end-game, the easier it gets to just trade and trust that in the end it will all work out profitably.

    This thread provides examples of traders with various strategies generating profits without fear. I'm a firm believer in protective stops, because it's very easy to recover several small losses with one or two clean winners. Some on this thread trade without stops as long as they believe they're in the direction of the trend. This can work for weeks, months, or even years, until it doesn't.
     
    #2228     Feb 28, 2011
  9. Guaranteed? No, nothing is guaranteed.

    Two consecutive gaps up in late January are still unfilled.
     
    #2229     Feb 28, 2011
  10. sponge

    sponge

    Hi NoD,

    Thank you for your response. Perhaps I did not phrase my question clearly. I'm not so much interested in how you use the 20 MA, but your reasoning as to why you believe it provides S/R?
     
    #2230     Feb 28, 2011
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