ES: patterns & rockets

Discussion in 'Journals' started by 1contract, Jun 19, 2003.

  1. I've been trading ES intraday for a little over a year now. I have had occasional profitable months,

    but mostly the wrong side of break even! I'm hoping that the process of keeping a journal will help

    me, and that going public with my plan will help me stick to it. If anyone wants to comment, then so much the better.
  2. I mostly trade continuation & reversal patterns (triangles, flags, W, H&S) on the 1 & 3 minute charts: generally looking for 2-3 points profit per trade with stop of 1-2. The main problems that I've identified in my trading are:

    1. Overtrading (not being selective enough about the trades I take).

    2. I'm too slow to identify (or to act on) failed breakouts. I often let my protective stop get hit

    when I should have exited for +/- 0.25 when the trade didn't follow through.

    3. I'm often too quick to take profit. I will snatch +1.00 - out of relief - instead of waiting for 2-3 points.

    4. I'm too fond of the 1 minute chart. This contributes to the overtrading and I often find myself on the wrong side of every whipsaw.
  3. My plan for this journal is to continue trading the patterns described above, but to try to correct the problems 1-4.

    - To correct 1 & 4 ,I will trade off the 3 minute chart ONLY.

    - To correct 2 & 3 I need to distinguish between failed & sucessfull breakouts early. I will use low volume bars to do this (might have to peek at the 1 minute chart).
  4. In addition, I will also take "rocket" trades. These trend following trades are described in detail here (

    My understanding/interpretation of them is as follows:

    enter if:
    - MACD(5,13,6) histogram > 0.4 (< -0.4) on a recent peak (trough)
    - Stoch(14,1,3) fast & slow lines > 80 (< 20)
    - signal when bar closed - enter next bar

    exit when:
    - Stoch(14,1,3) fast line < 0.4 (> -0.4)
    - signal when bar closed - exit next bar

    I will use some discretion with these around S/R, end of day etc.

    The original rocket thread takes signals from the 5 minute chart but suggests that they work on any timescale. I will take them from the 3 minute chart.
  5. I trade most days, but not all. On days that I do it may be AM only, PM only - but seldom both.

    I welcome any constructive comments.
  6. Ditch


    Try watching T&S
  7. Thanks for the input.
    What is T&S?:confused:
  8. Good luck with your trading 1c'.

    I absolutely do not mean to be negative here, but I have yet to see one person stick to their plan because they go public with it in a journal.

    I truly hope you are the first of many to come.

    Edit: T&S is Time and Sales, or affectionately known as the tape.
  9. in&long - thanks for the input - i plan to be the first - let's hope i can stick to it :)
  10. T&S now added to my QCharts workspace.

    I guess I'm just interested in whether they're trading with or against me - so I've coloured 'best bid' red & 'best offer' blue. I might also filter out smaller trades in order to concentrate on the big orders. I'd be interested to know how others configure and use this.
    #10     Jun 19, 2003