I didn't say I do or did this. But I do know a guy making a living at it. He has a very tight stop loss probably less than a point. If you are using momentum then price SHOULDN'T go backwards very much if at all during a push through S/R. Hesitation will kill a trade no matter what method you use anyway.
Actually this one just worked out that way by chance. I was looking at the 5,15, 30 and 60 minute chart for this trade. No veering from the plan at all. But you ar right that it should provide an extra push up.
Well, I wouldn't call it chance. All the bars you looked at are contained within the daily bar. It's all part of the whole.
4re - No, I didn't mean that you use a 0.5 profit target or advocate that method. You've been clear about your 2 point profit targets (subject to modification based on market action after the breakout). I should have written "If one were to use a 0.5 profit target....." I was simply recounting my experiment with going down to a lower PT than my standard 1-2 range. Sandy
EPado thanks for your input. I noticed several weeks ago that trading on the larger time frame (in this case 15 minutes), was both simpler and much more elegant than trying to trade the "noise" (on trend days the results were "obvious", I noticed this because I like to monitor the larger time frame when trading on a smaller (ie, 3 min) time frame. I just didn't have a reliable methodology or orderly system to implement such a trading program. Utilizing the previous day's afternoon session to define where the market "thinks" S/R should be for the next day is both logical and consistent, and the results have been pretty good thus far. I have to take it slow, because I've never actually used S/R like this before, but so far, I am liking what i am seeing and will continue my endeavors along with line. It's like watching a football, game: 1) you "know" where the lines of scrimmage are, 2) you "know" when the ball is being fumbled, 3) you "know" when they're going for the long pass, 4) you "know" when the opposing team has control of the ball but they are still deep in "the home team's territory" - just look at Friday's action. Etc., etc., etc., I'm having a blast working with this and belive I am building a solid foundation upon which to base a robust, accurate and logical trading system, and I will know at a glance exactly what the market is doing and what action(s) (or none) I should take. Best, Jimmy
No problem Jimmy. I used to look at shorter timeframes (5 min), but the noise was too much. It was putting me into trades that were not that strong, and when I went and looked back after the close I would look at the 15 and 60 min chart and say "why in gods name did I get into that trade?. In my opinion the longer time frames put you in much higher reward/lower risk trades. The problem with longrer time frames, the less trades show up, which is a good thing(for costs) but also forces one to sit and be very patient at times. Like every other trader I fall into times when things arent clicking...and EVERYTIME I look at whats causing this its because I got involved in the "noise" or no mans land. Well....using longer time frames helps keep one out of no mans land. Thats why I tend to monitor other stock indexes...and even other mkts (Bunds,Bonds). Sometimes I wont see any good trades in SP and need to venture out. I have found at times sometimes a good support area in the Nas, although the sp isnt at a great level, the nas is and a trade is worth putting on. Promarily I trade SP...but like to keep other options open.
Yeah, I found that happening in my trading right now. That's why I'm curently working on a scalping model for the NQ. Trading the larger trend is very calming and I find it to fulfill my sense (logic and order) to the markets - of course we know the markets most definitely aren't the most logical OR orderly thing around, that's why I working on a scalping model for the NQ as well. Best, Jimmy
The only days the SP Futures are logical /orderly are every saturday and sunday........maybe even Monday this week. In all seriousness the SP is a tough game...but one with tons of opportunities. Using the longer time frames isnt as hectic and much clearer. That enables me to tackle other mkts at the same time if I see opportunity. I usually try to stay within stock indexes and some fixed income. I had jumped into the currency mkts but they are a whole different beast and I had to monitor them much closer which ended up taking me away from the mkts I like more. Whats your opinion on the new Nas increments? I thought they should have left them at .50 increments.....these new ones are way too thin with way too many book sweeps.
if someone asked me to tell them what is the #1 thing i have learned about emini intraday trading in my 5 years.........stay off the short charts......... 5 and under......short charts
Honestly, I don't know how it's going to work out in time, but I would just think that it gives the scalpers more opportunities to make pennies at a time. After watching the markets for some time I strongly belive that they are going to move according to what the major market makers want them to do. Whatever information that is based on (we almost NEVER know when it is happening) that information can be deciphered, understood and acted upon according to the concepts and rules of S/R. Best, Jimmy