Buy1Sell2, Did you cover your short or still open? Could yo be more specific on the way you use overbought and oversold on 60 min charts? When I looked at it last time, the stochastic seems to stay in overbought/oversold for quite a long time before there is a reversal.
After taking a deep look at the charts of YM, I'm adding YM to my screen. Everything has to be confirmed by YM otherwise no trade. This morning for instance there was a CCI divergence in ES for a long trade but not on YM. YM seems to be really the king. Overwhelmingly trades confirmed by YM were winners.
I'm more of a position player really--I don't trade on the 60 minute charts too much. I was just suggesting that I thought it might be better for you than the real short term that you use. It would allow you to take bigger gains and not get stopped out so much . It doesn't take much to get stopped out with a 2 point stop. I will never have a stop less than 5 points and I have been known to have a stop as large as 25 points, if I feel the move will be strong when it gets going. A person trading on 60 minute charts will probably make more money than I , but it requires a lot more time on front of the screen. I am still short right now--yes. I use three indicators --Bollinger Bands , MACD histogram and RSI on hourlies. I like to have them all confirm each other.
Today no trading before 10:15, until everybody has made his mind about the economic data. There is a clear support at 1264-1262.5 next is 1258.5 then the bottom of this rally at 1251.5-53.5. There is a lot of resistance: the first a 1270.5 the the most important one is at 1276.5.
There is a potential long trade here at 1265.25, but needs to be confirmed by YM. We need a green candle with higher high and higher low. Wow, YM got me. It run to much higher to enter a trade here, the risk reward ratio is not that great anymore. Patience.
I think the price will go kiss the 60 period ema, before it retraces on the 5 minutes chart. That would be a great short opportunity as many resistance line up.
shorted at 1268 3 points target and 3 pts stop max. The market looks weak and I can't wait for the 60 period ema to be hit. Closed at 1270.25 for 2.25 loss. Once again poor execution. This is where I should short when there is a good setup, but too impatient. Fortunately I saved 0.75pts!!!! Total: 6.5 pts loss (10 poorly executed trades) Largest Loss: 3 pts Larges gain: 2 pts
I just can't find any reason why I shorted. Probably self sabotage that might explain it, otherwise I can't see anything else. No overbought, no divergence, ER is roaring, volatility broke down. Go figure!!! I missed the long setup this morning, that was a hit to my mental. It seems like I take only bad trades from my strategy and all the good ones I miss them. I still have problems getting back from hits. I always execute very poorly after a losing trade, maybe I should quit for few hours after a loss???
bought at 1272.5 target 75.5 risking 2 pts 1270.5. Closed the trade at 1273. I need to take a deep breath and clear up my mind. Total: 6 pts loss Number Trades: 11 trades Largest Win: 2 pts Largest Loss: 3 pts