Speaking of which, you see how the market traded down to Support (the previous day's Resistance, which was breached during the overnight/pre-market trading), found Support and rebounded? Note: This chart is on a 3 minute time-frame (because "I" can't trade off the 15 min, but I can use it to establish S/R levels) - which a lot of other folks are look'in at, belive me. Best, Jimmy BTW - my dentist's got some work to do - that's OK, I'm covered.
Boy, what a difference a week makes. Now I just have to add in the criteria for Reversals (someth'in to do with Double Tops, Double Bottoms, Lower Highs and Higher Lows - you know, the stuff you could get out a book for $12.95) and I'm pretty sure I'll have a Map of what the market makers are looking at. Note: See, I really don't believe there is a Holy Grail, Secret (or sacred) Formula, or Special Code, Double Secret Triple Divergence/Convergence, Bear/Bull Flags, etc. to the market. It's just a matter of looking at what's in front of my eyes and trying to make consistent, intelligent informed decisions using very basic concepts - like, uh, Support & Resistance, basic Technical Analysis, maybe sticking a 20 period Simple Moving Average on the Chart ... Have a great holiday! Jim
Right here on this journal. LOL. Just kidding. I don't know of any books or anything specifically about S&P Emini. I do have a DVD set that I got from Trendfund.com that is pretty good. I don't like their company but some of their DVD's are ok. What is your level of trading education? That would be this biggest help before going much farther. 4re
My favortie reversal technique is the candle popping out of the Bollinger Bands. It is simple to do and to show. I have found it to be very accurate on range days. It usually works better on 3 - 5 minute charts. I can show you examples if you want. There was only one of these today. Have a good weekend, 4re
Cool Bro, I'd love to see it. I've actually seen a version with the Spooz done in a Line Chart, so it's really obvious. Pekelo posted it on a thread about charts, but he didn't leave a description. :eek: I thought that wast what I was supposed to see, but I wasn't really sure bout how to apply the technique. Best, Jimmy
Gotta say....most of the time I come on ET is for entertainment value. Most of the Journals on here IMHO are useless. But....I came across yours and have to say....its great. I have been trading since 92 started out in equities and switched over to futures in 2002 after us equity guys got decimalized. Anyways...I trade mostly stock index futures and some fixed income at times. Not sure if my thinking fits in with you guys, but if its cool with you would like to chime in at times. My style is keep it as basic as I can and try not to over analyze. I basically use daily charts to come up with S/R for big levels.(I use candlesticks). I tend to be a fader and look to get short into resistance/ long at support, especially the FIRST time these areas are hit. If they hold I then load in as the trade works. Not so easy to add on recently with the volatility and whipsaw going on. Anyways....I got to admit over the years I have had a tough time buying at resistance /selling at suppport. But....I agree bigtime with you if the mkt hits resistance, then returns later its probably a better chance of a breakout.(the more times it hits, the longer it will fly when it does break) I use 15 min charts during the day (used to use 5 min...but too much noise). When I do decide to switch over to the breakout side (which is not so often), I find it best when the price has hit resistance 2-3 times, because when it does break it usually flies. You probably mentioned some of these questions already, but was interested: How much profit are you looking for when you get a breakout? (I think you mentioned 2 points or so), and when it does break, how much room do you give it if it heads back the other way? (did you adjust much during the insane moves end of last week into this week?) Do you adjust position size? ex...the other day the overnight low was 1246.75......mkt got down there for the first time during the pit session and I put on larger postion on the long side.....I felt the risk reward at that time was much more in my favor then if it was the 2nd-3rd time during the pit session that it was hit. I most likely would have used half pos size if that was the case. Anyways...keep up the good work....
Hey 4RE, I noticed that the ES hit the long target and popped up a quarter and then dropped. What do you attribute the failure to? Anemic volume? I'll be very interested to see what your S and R is for Tuesday based on this action. BTW, your recent posts have been very educating. I am just starting out but am realizing very soon how 90% of trading is controlling your emotions and being patient. How do you enter the trades? Lets say you want to go long at 1283 for 2 pts. I would enter a buy stop limit for 1283 with a bracket order of sell stop for 1281.50 and a limit sell for 1285. However if the ES seems like its running out of steam would you enter a fresh order to sell at limit 1284, sell at market or change the limit price on the already existing sell limit of 1285. Just trying to understand the quickest way of getting out. Seconds count! Have a good weekend all. pkts.
4RE, I'd be interested in examples. I'm guessing you are talking about the touch at 1275 about an hour into trading?
Can anyone comment on the negative factors of using the bollinger bands for trading? I was looking at the chart for today (posted below) and it seems that if you bought all the touches, you would have made money on 3 of 4. It can't be that easy! Are there other qualifiers?