U are better off entering the market into the support resistance.. and just managing the trade from there.... WHen u wait for confirmation u will miss much of the move and get the worst fill to boot. --MIKE
Trend Fader, what stops do you use when shorting at S/R levels? If you enter a 5 ES short at R1, will you ADD to your short position at R2, or exit at a loss before it reaches R2? Thanks, -Fast
Sorry to butt in here, but I shorted the NQ at the same level, and it doesn't pay to look for too much. What exactly do you mean by "better reversal bar"? If you don't know exactly what you're looking for ahead of time, you're not going to have much time to think about it when the time comes to enter. As TF said, by the time you decide to go ahead, the pros are already scaling out.
Dphoenix if you're reading this.. Since we were talking about pivot levels yesterday.. did your system give a short on the ES near 1138.???
Because we had a nice strong move into it is why i went short. ES has been rallying from noontime... so it was a great point for some players to start locking in long profits... The truth is that most of the time trends dont last too long for the ES. Maybe 30% of the time.. u will get a huge trend day.. and blow past every level... thats when a pro will get some damage but if they know how to manage their losses it wont be too bad. Yesterday was the same exact thing.. except the rally was much more powerfull... yesterdays the pivots nailed the high and low.. it was amazing. --MIKE
hey dp, I'm trying to be much more patient with my trading.. and in doing so .. I like to see strong reversal bars before entering against the trend.. in this case a shooting star, doji or dark cloud cover.. the trend was very strong and thats why I didn't get in.. but TF made a good point with the trend being overextended on an intraday level anyway..
Yes, but I trade the NQ and took the short at 52.5. If you'll look at the 1m charts, tho, you'll note that the ES just barely preceded the NQ on the downside. It's more difficult to see in hindsight with a static bar, but when you're watching it form, it's more apparent.
Not sure what you mean by "very strong". The ES had gone nowhere since the open, assuming you're still using 5m bars. And on the "breakout" attempt, you had a shooting star (more than one if you follow the 1m along with the 5m), though what you call it doesn't really matter. The close is nearer the open than the high no matter what sort of display one chooses. As for the doji, I wouldn't call that a reversal bar. In any case, the issue is not so much what the bar looks like but where it occurs. On any given day, you're going to have plenty of dark cloud covers and hammers and shooting stars and dojis. But if they don't occur at S/R levels that you've pegged the night before or pre-market, they don't necessarily mean much. The patience comes in waiting for your spot, even if it takes several hours, not in waiting so long to enter that you're bumping up against the profit-taking that's going on amongst those who entered earlier than you did.