Euro Currency Futures Soybeans S&P 500 Futures (now about to collapse at this rate) US Dollar Index futures (powerful downtrend for quite some time) .........etc...etc.........etc. just have to know where to look and at which time frame to trade along side of.
You are at inquiry which is very good. You can see several others recognize that you speak of an opportunity. The exceptions are not where you are at this point. There is a list of ET traders, past mostly who trade both ways in strong trends. As any one get more efficient at extracting profits out of the markets, they come to the specific possibility you mention. A person I mentored thai AM started of on Friday with a long, short and long to accumulate 7 points (350) before 10:am market time. To detail out what you want to know (and straighten out a couple of posters in the thread) I will lay some ground work. Strong trends are best understood as trend that make money fast. That means their channels are steep. To make money against the steep trend it needs to have traverses from left to right and right to left (I am referring to the channel sides as left and right.) This is not hard to visualize. Think of a child with a crayola making lightening from top left to lower right using firm jagged strokes. If nononsense were not able to do it in kidergarten and said to his teacher what he said here, naturally the teacher would make him do ten kindergarten lightening strikes. And she would then show him how if he screwed it up to implant in his head to behave and "get it" and shut up for a while. A narow long trend with very steep up rockets "taping" from left to right bashes the left channel line and spike down immediately half the former rocket rise. Price then bashes into the right line and riccochets up as in the first run up and just as rapidly. Ad nauseum. You make three units of profit on the way up, one of two units available of profit on the way down, and three units of profit on the way up. You make 7 points in a H/L context of 5 points and you missed some of the middle points available. How does one "see" the potential before you make the money. You do it by simply being on the right side of the market at all times. When in a person's career does this happen? For the beginner whose print I looked at this AM it happened on the first print I reviewed with him as a result of last fridaywhen he traded alone using I contract. He started before open at 8:31, covered at open, wnet short two minutes later for several minutes and then went long to finish off making 7 points on three consecutive trades where the H/L range was 5 points. He was doing 7/5 or 1.4 times the high/low as a beginner starting the day. For you, this is where you are. Fro nononsense, he needs to get out his crayolas yet once again. Attached is a cheat sheet for doing trading that keeps you on the right side of the market at all times. no matter what the market is doing, you just go with the flow in the channel. If the channel is very strident and has up and down traverses you make money every traverse. If the channel is less stong, you make money on right to left traverses and just coast on the left to right. As any trend ends you ease on down the road into what is next. Very good thread question. Save thread and simply cut out the crap and then print it. In the attachment "hitting the T refers to a market order which makes the trade immediately (strong markets call for that) For those who do not know or may not remember, you have to "buy" the spread on market orders.
Jack, Thank you for the informations. I do continous trading (sct). I think following or surfing the mkt is the safest way to trade. Mkt is in flux always, it means there are fractal (time) periods where mkt is moving, but higher fractals (daily, hourly, half hourly etc) is flat. Now, regular traders will skip, because they will consider it is random. But, this random behavior in smaller periods have order. It will bounce most of the time support and resistance or in your channel, in my case two very fast jurik moving average. Now I do not know the future, but when I see price action breaks through the channel or s/r and it is not correcting, I know the trend is developing or might break down and I jump into it or reverse it depend on the situation. But, correction will come, only way you know that through the behaviour of the trend of that mkt. So, you have to be experienced with the mkt. Finally, money management and scaling is important here, so, you need at least $50,000 to be successful. Jack goodluck to your health.
Hi Jack. I notice in some of your posts you refer to "taping". I'm trying to figure this out. I think you touched on it once or twice, but you used terminology that I'm not familiar with. It seems a number of the ideas and techniques you've mentioned involve taping. My guess is that it is searching for the time frame that is most smooth. Say, if price moves up 5 points from A to B, you would look for the time frame that displays the move in all green bars in a straight line. Then you would use this time frame (fractal I think you call it) as the trading fractal. Am I close or am I talking about something different? I think finding the right fractal for any given moment seems to be my struggling point right now. Sometimes I can find it, but tend to continue using it even after the market has changed and different fractal would be more suitable. You mentioned that a number of traders tend to get stuck in a fast fractal with too many signals. Would "taping" properly solve this issue? If you have any comments it would be appreciated, as this piece of the puzzle would help me further understand some of the techniques you so kindly post in ET.
Manz66, yes sure, but thats because I'm a zero sum player (ie DOW). As it happens I often use the Open to buy or sell because my systems's criteria tells me whether the first main move is up or down (won't matter to me whether or not that anticipated move is going to be counter to the the day, week or long-term trend). Bear in mind too that I won't carry any positions beyond the day close but again generally I'll exit a particular position on target completion (or sometimes under target but guided by/within a maximum timed expiry configuration).
90% of my trades are short no matter what the trend is. I guess I would have to turn my monitor upside down to take a long, I'm just not good at it.
Nice post. In the forum, Index Futures, A thread has begun on carry over for equities investing and trading into futures indexes emphasis is on ES. The contrast of you words and the first three pages there is that you are dealing with the issues of: time frame (trading fractals), market pace, and the ammount of signals that are present and their frequency. To make money best, a person does have to be at the right place and the right time. Being excellent and trading KISS seems to be a remote possibility on that other threads from all the comments. But is it? By designing a perfect market to trade, it would naturally be easy to be excellent and KISS would be the mode. Taping is the perfect trend. It is defined as equal length bars that overlap the same amount going in the same direction. By rippling up and down fractals you get to see taping at some point as you go to longer and longer fractals. We are lessening sensitivity and really cutting down on the signals impacting us as well. To "make money", I recommend that we, instead, look at stuff in a standard form as an alternative. That calibrates us and our monitoring (sensing and emotion pairs)to gathr data; calibrates our analysis by making it routine and repeated at a given frequency; gives us a standard set of data to use in concert with our comprehensive array of beliefs (NLP pics); and finally, we need only one action technique. The single action technique is :"to hit the T as the Bbid/Aask goes to zero. We have used your scope and bounds of this post; set up taping definition; set fourth four steps to repeat as a routine; and finally just defined action as one single act. Now we have to do some work. We need to refine. Start out with taping on the 5 min fractal. Take a bunch of charts a day long each (81 bars each). Look for taping on the 5 min. Then bunch in threes the 5 min bars and see if you find sets of three form 15 periods of taping. That is the given channel on the 5 min chart is traversed within each group of three 5 min bars. If not, then regroup the consecutive groups. Try 4 bars per group. try 5 bars per group. Sit back and see that a lot of the time you have "taped the market". Do this. For the tapes that work for periods of time using 5 min bars alone and not bunched, see what happens after the "tape" ends. You will find the following: It moves over and starts again. OR It is a tape if you bunch bars to some extent. CCC is lateral taping if you do one of the above efforts. Where we get to is coming to find out that we can see alot of taping for almost all of RTH. "Bunching" to get "taping" is a method to "kill" an overwelming surplus of signals. By doing this stuff, you find out that many fewer trades are required just based upon the fact that you "hold" through all tapes. The "new point 3" has shown up as well. You see that most tapes are trend beginnings like airplane "takeoffs" and that after the initial money velocity, the trend goes into a "grind" of bunched bars that make a tape that continues along at a lower money velocity always within a channel that is defined. So tapes are channels where each bar "fills" the channel. Channel that form and arenot tapes have traverses, where the traverses are often tapelike. By using the coarse, medium and fine repeated laps, where all of the above comes under coarse, we have "smoothed" out life considrably. See that medium is a taping exercise as well. Fine is just used for taking action at precisely the right time. In SCT, we make money all the time by being on the right side of the trend all the time and finding out we made a lot of money. I am doing now a days a series of important posts that are long each and redundant. Metalurgically speaking I am "soaking" and annealing. I am also making swords out of traders and Samurai swords were made. we are building strength through the length of our tools by having layer upon layer of pure materials that are consistantly applied over and over in the same way in each layer. we are going to be able to focus upon where the "bends" are made to fold what we have into a most elegant and cohesive tool. Tapes are the spans of money making. translation and continuous accumulation of profits occur. Between these we dynamically act to extract. Coarse has three layers of detail. Medium has three layers of detail. Fine has three levels of detail. Everything is made of sequences. Total sequences loop and repeat. The deepest layers are just nuances that still are pure and unfettered. When you read the SCT Synopsis, you will be abkle to "see" all the layers, the sequences and how to get to "hitting the T in the same way always as is done at the lower right. In the very middle you see the difference in a reversal and a resume. Trans is the word that means "taping" in DOM. 2 pair is the simplest ocsillation found in the market; it does not get any better as Jack Nickolson said. If I take you to continuous (translation) and to the smallest oscillation and those are the only two choices and you "see" that, then you are going to take all the money out of the market that is available all the time it is available exeactly when it is there to take. QED. What you posted is, if fact, the last question. This is where people are going to "get" just what "Elite" means. I have to explain the SCT synopsis in such a way that people get used to it just like driving a car. The Q's on the table before this one you asked are: a. What is next? b. What should I be looking for? c. What, at a given time, is the most important to look for? answers: a. see sequences b. next step of sequence on coarse, medium and fine. c. That everything is flawless. If a flaw occurs, then it shows up on coarse, then medium then fine. NB: Never do only a partial data gathering. (See one signal and act on it.) NB: Only act by hitting T when the Bbid/Bask goes to zero.
You can use another strategy it is called 'morning reversal strategy', according to historical tests major stock indices revert to the previous day's closing price in the early minutes of the trading session. So, after morning break out or gap, it is usually filled most of the time in the first half hour, you can take advantage of that info. Goodluck.