Jack, to give an analogy, you are the guy who pulls up alongside the guy thinking he's driving the souped up car, yet outruns him; you are wise from your years of survivorship in the markets and I thank you for imparting that wisdom, and though I can't understand some of your "Yoda"-speak, I want you to know, for now, that your sharing and nurturing nature is appreciated, if not only because of its rarity.
Jack, You mentioned that the 1st entry pt was at 10am, which was a very good entry. I just wanted to know how you handle good bases like that which happen to fall right on the eco news announcement, since the announcement can affect the price wildly in the next few minutes.
Thanks again, jack - nothing better than having "Yoda" interpret my charts correctly. Some dumb questions: 1. Can somebody tell me what FTP stands for? I know from the chart that its a congestion. 2. Where do you "bracket"? (Hmmm, I like that term) At the 10 am VDU? This means not having a directional bias at the point of VDU, correct? (At least I know what VDU stands for right now) pretzel
Let's not get overly carried away... Tick, trin, volume can be very successfully used via their divergences with the price. This is the best way to employ them and the most reliable one. Tick can hardly be used as a leading indicator and I know of no leading indicator for futures, anyway. Perhaps the premium, but I doubt it. On the other hand if you think that the price is enough as an indicator of market action then you obviously forgot the title of this thread which, to recall, is how to manage false breakouts. Yes, the price can be misleading too, which is why this thread has been around for a few days by now.
Jack, you wrote, "double the contracts ... and reverse the trend hold " Does this mean, if I own 500 shares of IBM and sell them when the trend reverses, that I should exit/reverse by entering a sell for 1000 shares? If it does, besides saving the base commission, isn't this sort of thing illegal or frowned upon or some such thing as the additional 500 share order isn't marked as a short?
******Impending news is always worth a bracket set up and always, eeven though you may be using expert orientation, set up "outside" scalping. We can count on public reaction for sure. We do not have to bet on the direction. Next after the reaction the volume will not sustain the reaction so we go into change mode and do a reversal on the poop out. As that interval passes, we prepare for a damping period to melt back into he former (before news market action) . this damping will appear as a price signal on the old preannouncement trend action. For graphic people you can extend the prior channel lines through the news BO and reaction -period.
stocks and contracts has a few twists. You can follow the lead of your brokers on this in each kind of market. I had a fairly detailed call with my equities team because of the next few days coming up. I am going to be very active and I want them on the same page. I have voice recognition and many accounts. I want them to have the account #'s at hand and execute without me doing the blah lbah. To that end I have already said what kind of orders and which people will tell whom what to do. I have to bleed my fills into the market. To nail a reversal on IBM with a margin account is a straight forward deal. I would be unable to reverse on my equity positions smoothly for practical reasons. It would turn out to be a piece by piece thing. For the ES which is what this thread is about mostly, whether or not you use voice or keying in, you can execute reversals with a doubling down on contracts. Actually several people here can tell you what a daily 11:00 pm evening report (email) on several trades looks like. It is usually a mess on first glance. But by using markers you can get yourself straight.