I hope you noticed that it gives you 10 trades/day to do it also. No shame at all in taking 1/2 a point at a time. Size matters. I challenge anyone to not take 2 es or 20 ym over 10 trades/day whether your entry strategy is to go long when you have to go P or go short otherwise. Now thatâs scalping baby....
4re - In looking at the daily chart with your BB set-up, today's candle looks like a good buy signal - long tail through the lower BB and a positive close. Additionally, there are divergences setting up on the MACD and stochastic, which should complete tomorrow or Monday if there's some follow-through. Sandy
Yes, I saw that as well and I am considering trying that method for real tomorrow. I would use a 15 minute chart and if the set up occurrs I'll enter the market with 1 contract and see if I can ride the whole movement. Don't have to worry about up and down whipsaw action. I will stay in all day or until the move is over. Play longer term and use wider S/L. I have been doing it in simulation for a while and catching between 10 and 20 point moves. Very relaxing trading that way. I'll keep everyone informed. I'll still post my S/R charts if anyone is interested. This will only be a 1 contract trial tomorrow. Don't think I am changing my method on you. Gary
Here is a reason I want to test this method tomorrow over a longer time. One contract I can set a wide S/L giving me up to 10 points of wiggle room. Surely, I'll notice I am the wrong side of a trade before then... Using 1 contract today I would have made 2 trades making a total of approx. 32 points. Not always going to happen like that but it did today. Here is the chart of what my trades would have been.
Not true, realistically I would have gotten 27 points. I would not have gone all the way up with it. Would have sold my long at 1267.50 Just wanted to correct that.
I must have misunderstood the BB approach. I went long @ 1260 at around 9:30 when the candlestick cleared the bottom of the BB. Had a decent 2 point profit and was going for 4-6 (top of BB) when the market decided it was a downward trending market and not trendless and proceeded to tank. Thats my only problem with the theory....user error. How do you know if we are trending or trendless until it happens? Or would you have waited for the bottom BB to be more strongly pierced?
I like to see a big long needle candle. For a true needle top or bottom. The wick or tail (which I call needles) needs to be at least as long as the candle itself. It should really stand out as a reversal candle. The ones I marked you can see as a strong reversal candles. It will go outside the BB and reverse with at least the same strength. Tomorrow, I'll be watching for this and I'll post as soon as I see the right one. Don't jump in with a lot of contracts. Just go for one and I am going to try and ride it for as much as I can stomach. Also look at different charts. If you will look at a 30 minute chart at the times that I marked on my chart it will become very obvious. Then look where you entered and it was not close. The farther out you go the clearer it should be. Let me know if you need some help with it and I would be glad to help you. 4re
Here are the S/R numbers for tomorrow: Long 1272.50 - 1279.75 Short 1244.75 - ??? The long call was very easy to see but the only short of any significance is a break out of the low today. As I said earlier, tomorrow I will be trading using the BB method on a 15 and 30 minute chart. Just 1 contract and see if I can capture as much of any move as possible. I will take multiple trades if the set up happens more than once and I will post on here right after I get in the market. Good luck to everyone, today seemed kind of brutal. We need to go out on a good note tomorrow. 4re
4re, I understand why the question of trend or not.....it is with the trend and it is scalping.........10 pts ym