Every morning provided there is NO major reports do at 8:30 I take the first setup i can see. If there's a 8:30 report i still "may" take the first set up BUT i will exit before the report. Here is an example from last week. <IMG SRC=http://charts.dacharts.com/2006-12-18/Joab39.png> http://charts.dacharts.com/2006-12-18/Joab39.png
I believe I gave this composition a quick read the first day I had decided to try and learn these methods. No doubt my mind was racing in 10 different directions at the time, and I failed to appreciate many of the insights offered here. Wow - this is some excellent stuff imo. I found very interesting Pointone's discussion of the flollowing: Snip: Price is testing the left of the channel but cannot get there, despite volume. Either there will be a swift and violent reversal or it will sit there mid channel for a while, in a dwell point. Snip: I've also noticed that you sometimes get a second chance, further confirmation and perhaps a better price if you wait just a little longer during this dwell point - patience and alertness all at the same time. You may even choose your price and hope to get taken in on a limit order at the new TL (as close to Point 1 as possible). If I'm correct in my assesments of the above snips, I've seen this many times in the euro. They print a new intraday high, and then drift into what I always considered chop. At some point, after they have lulled me into "sleepin at the mouse", they do the headfake thingy (suppose just tidying up any "wannabe long the b/o" buy stops and weak-handed nervous newbie top-pickers) and then its "look out below" for a quick 20-30 pipper. Pointone's discussion of this has provided a new clarity here, at least for me. Snip: If you see a FTT of your traversing micro-channel as well as a FTT of the major trend signal-carrier channel, you pretty well know it is a major FTT and worth a trade. At this point you know nothing about the coming price move, but in risk reward terms it is a pretty good bet. Makes perfect sense to me, Pointone. Sure hope you will continue to frequent these pages, and provide updates of your successes and experiences. Best of luck ...
Update on QQQQ posted 5 days ago. How I handle trades that don't work as anticipated. Comments welcome http://charts.dacharts.com/2006-12-18/Joab40.png
My take on this is to look at the high of today's bar as a new point 1, today's low is a potential point 2, and now look for a retrace on low volume to form a point 3; and then of course you have a new channel to work with. I can't tell you how I come to this conclusion, it's sort of an intuitive thing and I'm still learning of course.
Follow the FTT's until one of the competing trends takes hold and dominates price. - Spydertrader <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1299703>
With an average distance of $1.33 between each FTT (low near .43 cents and high near $4.55), I would respectfully disagree with your analysis. It ain't the futures (then again, what is?), but plenty of money in the cubes for the taking. I'll say it again, FTT's work in any market and on any time frame - provided sufficient liquidity exists. Good trading to you. - Spydertrader
Spyder, With 1pt between lines in my QQQ chart and by eyeballing it I do not see the 1.33 spread unless you are referring to the QQQ future equivalent. I think someone was looking at the QQQ Index specifically to trade and not the futures. If you are referring to the QQQ Index then can you please show me on the QQQ chart the 1.33 point spread that you mentioned. thank you
Granted, the entire annotated chart uses 'hindsight' analysis, but drawing in the various trend lines, allows a trader to see what might have been. Even if one assumes a trader only has the ability to capture half of the distance between FTT's on the QQQ, the attached chart shows many profitable trades. Still, even using such a low standard for trading, we can see how the FTT's work. - Spydertrader