Today was a great day it seemed for trends. I paper traded w/no indicators and I took 7 trades at 4 contracts per trade and $1950 total. I waited for pull backs and drew trend lines where I thought they should be. I also drew horizontal S/R lines and when price broke above these I took the trade. All trades were long by the way. I got out way to early on most of them. I am still very nervous about holding on once I accumulate a certain amount of money. Paul
allright guys. here it is. look at the trendlines. take a trade only when the line is touched the 3 rd time. no others. now this is just a "big picture chart" i will gladly show a more detailed chart to show where i entered and all if anyone wants. these lines are not after the fact. this is nothing hard. just connect the big pullback and popups and take a trade no matter what when strength/weakness re-appears. comeon, everyone should make money from this? now i missed a lot of trades because of it, but thats fine. i dont care. because of the small stops, i got stopped out on a few occasions, but i won about 65-70% of the time with winners bigger than losers, need i say anymore? infact, i learned this method from someone who had been doing it for a while. using this method, someone can be taught in an hour how to trade. But disicpline and balls to take trades after 4-5 losers in a row is a must. For this reason, i dont even keep pnl open. just enough info to know whether orders got filled. thats it.
ggoyal, Thanks for the chart. I would like to see your trades also if possible. Did you trade everywhere there was an arrow? Thanks....
also, if a line is pierced by a little bit of the reversal starts almost close inside the trendline, thats a go ahead. use judgement on that one. usually they work out pretty well. little piercing is fine, and almost a touch is also fine
http://www.surinotes.com/ I'll second the reco's to get Suri's book about trading price action/patterns/whatever you want to call it. Very good, comprehensive book.
Your saying that if a line is pierced a little don't think that its a reversal or that it cold be starting a reversal or just use our best judgement? Sorry, I read your post but I think there was a typo and it doesn't make sense to me. Paul
I found an article by Daan Joubert almost 10 yrs ago re. trendline gradients. His method of establishing a trendline is not conventional. Instead of joining outside swing points, he uses retracements from both above and below. Then clone that line and move it to the outer swing points. It is amazing how swings will keep hitting these lines...I've used the same cloned trendline for up to 2 months. Current article: http://www.freebuck.com/articles/daanj/080911daanj.htm Another unconventional trendline that works is Charles Drummond's 2 bar lines.
How could you have gone long at the 3rd green arrow? That was the first time it had touched that trend line, and you couldn't have known until a few bars later that that was actually the low. Unless I'm missing something.