there was pretty good vol at the 70.5 area on 6/1...just in front of the gap. Lunch time so I took some more off at 77. will carry a small position in case it goes
A quick comment on trading specific patterns or entries.... trading a clos of a specific bar unless there is an underlying reason & not just because of the close itself, is a problem for me personally. I'll try to explain in case anyone is viewing or gives a crap lol It's pretty simple actually. For the most part, price isn't bound by time. I'm not talking about the open or close either. Price is continuous throughout the day & just because a bar forms at a specific time, set by the parameters or the charting software, has no meaning to price. Price doesn't know the difference. almost filled the gap....
Anyway, I have a few different software packages and the bars are quite often very different.... just filled the gap... so I can be taking trades on 1 platform and missing them on the other if my entries are based on candle patterns and closes....what good does that do me?? Patterns as a whole are a good thing but once I started to understand why the patterns where forming, it became a new ballgame for me. I won't wait for a 1 or 5 min bar to close in order to tell me that it's a reversal, although sometimes it works out that way. Pleas understand that I'm speaking of small TF charts. Most of us will have 30, 60 min charts & higher that are very similar, give or take a few ticks, regardless of the platform or data feed. So my entries are based on PA and volume. My good friend KDASFTG made a comment the other day that i needed to "reassess" my situation, which is fine, it's his opinion. My entries are based on PA at specific areas which are pre determined. I won't ever say that I got long or short on the close of a hammer reversal bar on a 5 min chart. If my entry happens to coincide with that, it's because of the underlying factors involved but it is not based on the close/open of a specific bar. My trading plan is very clear but it's not based on abc patterns etc which might say to take an entry 1 tick above/below point b. Gap at 1061 next?? lol
next gap 1061 Opening and closing price for the day is a different issue but I still need to see the PA & vol, in and around these areas.....I don't just trade them for the hell of it Hope this makes sense
interesting setup but it happens all the time. on this chart, how would I know which vol div trade to take L. In real time, they would look identical. Only after the fact is it easy to sya which one was the better setup. I used to do this all the time but much less often now. A. the 61 is the next gap to be filled and is also an area of low vol(not shown on this chart) if my initial stop is 2 points then the entry at the yellow arrows is to far away for me to enter. I have a few choices. 1. reduce size and widen my stop so the dollar value would be the same if the trade doesn't work 2. take a shot 3. pass on the trade and wait to see if price pulls in closer to my next level 5. have a beer