so if you used this strategy on thursday on ES would you not do anything until the 13:15 bar? Because there is no break of a major swing h/l until that time? even though it "looks" like a trading range day.. using the 1 minute tactic does that mean you'd be buying the 13:34 bar @ 1521.75 (1 tick above ema) and then would you exit @ 13:40 bar because it closed below the ema and below the previous pivot low? or would we stay with the trade? or am i not doing this right?
also, instead of using a limit order to get in at the 1min ema why not use a stop order to get swept into the trade so you can avoid situations like you mentioned on your friday example where the bar kept going and closed strong above the ema?
How naive are you? People have gotten so used to free information on the internet they believe they are entitled to it. Get real! If an entrepreneur made a pizza so much better that people would line up at his store to buy it, do you think he would freely hand over his "secret sauce recipe" to his competitor down the street? Why show that guy how to make superb dough? IF he is smart, he guards that knowledge from his competitors as best he can. In the "markets" it's even worse. If I share with you how I've been successful since 1972 my edge would evaporate like vapor... I have a friend (who recently died of a brain tumor) who begged me for years to "share." I was tempted but never did, thankfully. Years later I learned, from one of his friends, he intended to write a friggin' book and include what I would have revealed to him to the world.
i agree with you, thats why its so hard because the nature of the game is ultra competitive. what im saying mainly,( to use the pizza analogy..) yes if i had a pizza recipe selling like crazy of course id guard it with my life BUT there are literally hundreds of great tasting pizza recipes available to the public, its not like there are winning trading strategy's just lying around like a food recipe.
IMHO, this looks like a profitable tactic in chop/range around a flat 20EMA. Interestingly, my homework this weekend is to compile stats surrounding this strategy and determine whether I want to add it to my plan. I've done it a few times. It's currently an out-of-plan trade, which I like to call OOPs, because most of my out-of-plan trades fail, lol. This one has worked well though. I'd never do it in a defined trend, though. If price fails to break a previous high or low by more than a few ticks, I wait for an in-plan setup for a "confirmed" counter-trend entry. If the two strategies I described in this thread were the only strategies in my trading plan, I would not do anything until the break out of the range. On my chart price never closed below the 1min 20EMA, it closed at the 1min 20EMA, so there's no reason to scratch the trade. On the other hand, I'm pretty sure if I bought 1521.75, I would scratch the trade following the 1-tick failed break of the previous high. That would be a discretionary reaction on my part. As you can see, this deviation from plan would've cost me a full profit target. Another thing to consider is that there's no technical reason not to hold this trade for full stop or target because that previous range resistance breakout (1520.75) is well-contained within the initial 8-tick stop on the trade. I recently worked with a trader who wants to trade for a living. She was looking at too many things, trying to manage too much information, and was basically trading from a state of confusion. I explained to her this trend continuation tactic and told her to practice trading this and nothing else. There were days when it presented itself one time. That teaches you patience. Then there were days when it was an ATM machine. That reinforces how patience and discipline get rewarded in trading. My price action trading plan started out with only the 5min time frame and a very specific setup. It was difficult enough for me to get aggressive with that single setup. If I was trying trade everything (chop, range, triangle breakouts, NR7's, Fibs, phases of the moon), I think I'd have given up long ago.
This is hilarious. True, but hilarious. People want everything for free. Google it, or, you can pay me 2 & 35!
The nice thing about price action trading is that the concepts that are published in books and taught in trading rooms and webinars day after day, and for years and years, have been working as long as liquid markets have been around. Human nature hasn't changed in 10,000 years.
Good point. I was at this seminar about two years ago listening to Courtney Smith speak and someone alluded to why he was teaching and he responded along the lines of: You'll go home and in two weeks not remember nor apply anything I've taught you. Even if you have a system or set of rules it takes a certain type of individual to apply them day in and day out, which, I think we can all agree upon.
you're not kidding, thats the death sentence for any starting trader. i guess with the ema trend strategy you described, the grey area would be what constitutes a previous high break in a strong trend because prev highs are being taken out constantly as there is no deep pullback. as Wednesday would it be valid to look for a 1 min ema pullback at all these prev high breaks.. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=3750865>