The purpose of this journal is to learn and help others learn at the same time. I don't trade full time, but my job allows me some spare time during the day to pull up charts. Every now and then I'm able to take a day off too and be home all day. I've studies the markets off and on for a few years. I've gone through the newbie phases of buying systems, tinkering with indicators, etc. I have started getting a little more serious over the past year or so. I have read through the AHG thread several times. I have also read Al Brooks' Bar by Bar. I am currently looking to further my understanding of how the markets move by beginning to study the work of Wyckoff. I think this may give me more confidence in a lot of the trades I take. I am always open to criticism and encourage others to participate. I like both the AHG and Brooks style of trading. I am hoping to figure out a way to find a hybrid of the two along with adding some volume analysis - eventually. I am basically looking for intraday scalp trades on the NQ or ES based off price action.
traded ES today chart attached trade 1 looked like a good reversal setup, went long then got scared by the brief chop and got out. +2.5pts trade 2 looked like another good reversal setup, went short. Got out after price started to reverse back up. +5pts trade 3 price moved up a few point, was looking at 1227/1228 area as a higher low at the time, tried going long and got stopped out -2pts trade 4 went short after a lower high and got stopped out -2pts trade 5 took a quick scalp from the bounce off support with a tight stop. +2.5pts Called it a day after seeing price unable to make a real move. Missed the big drop, but didn't want to chase it. +6 pts total
Not trading today - Friday. For some reason my posts aren't showing up here until a day after I post them.
Decided to start posting when I have time again. Feel free to join in and contribute. I am still trading in a similar fashion but have refined some of my techniques. I trade NQ, 6E, and occasionally ES. I have been keeping an eye on CL lately as well. I just closed out 1 long trade today based on the TL break to the upside. Price stalled so I got out. I am currently contemplating a short scalp based on what appears to be a volume climax (at least at the moment). If I take the trade I will post up the chart.
1st trade: shorted the break of the doji and took a full stop after the next couple of bars. 2nd trade: shorted the break of the trendline and got out at breakeven. Had I watched the 1 minute more closely I likely would not have taken that trade. 3rd trade: long at the break of the trendline and the 3 consecutive tops. Poor exit as I should have held longer and a lower high was not made.
Thank you for sharing this journal. Keep it coming. It's pretty interesting to follow. I usually scalp stocks. I wonder what the requirements are to trade the futures: 1. What's the minimum deposit you have to have in your margin account? 2. What platform do you use?
1.Check out AMP futures for margin requirements. I think they go as low as $300 per contract, but I could be wrong. Minimum deposit might be $2500.00. 2. Ninja currently. This is an old journal (that obviously never held my attention). I still trade in a similar fashion, but with a better understanding of what I'm looking at. As far as volume goes, I actually prefer cumulative delta vs regular volume bars. But that's just a personal preference and I usually don't have either on the screen. It's just an additional way to try and visualize price flow. Less on your screen means less distraction. I usually leave it off. DB's threads are what I would recommend to someone wanting to learn to trade. The next are: Shopster's thread, the AHG thread, and "Simple Profitable Approach" by a poster named "metal". Everything one would need to learn to trade can be found in those 4 threads. DB's thread(s) alone are fine, but some seem to have a tough time putting his advice to use. The other threads I mention are similar approaches, but they're laid out differently. IMO they're more of a "visual" way of learning to read price flow. Instead of concentrating on the underlying principles that move price around (buying and selling pressure), those other threads visualize them on the charts with the use of PA patterns. Below is the same 15 min NQ chart. One uses candlesticks, the other uses line-on-close. The wicks on candles help show rejection. The line chart shows rejection based on the actual price close. Visual price on the line chart doesn't get as close to the actual channel lines, because price was unable to make it far enough and actually close. The channel lines are in the same exact spot on both charts. I didn't trade this. It was drawn in hindsight and is just the most recent NQ action I'm using to show as an example.
Thank you, Broomstick. Thank you for sharing your experience. I appreciate it. As far as the journals you mentioned above: DB, Shopster, AHG, and metal, I tried to find their journals and could not find them. Could you please clarify how I find them? Thank you.
http://www.elitetrader.com/et/index...itable-strategy-for-struggling-traders.99283/ -AHG thread http://www.elitetrader.com/et/index.php?threads/fib-expansion-and-retrace-in-forex.223293/ -Shopster's thread http://www.elitetrader.com/et/index.php?threads/a-simple-price-action-approach.220303/ -Metal's Thread http://www.elitetrader.com/et/index.php?threads/ghost-of-if-you-can-draw-a-straight-line.280889/ -DB's thread
Broomstick, thank you for the links. I will take a look at them and follow the one you recommended - DB's thread.