Well, that didn't go so well. Out at .25. No volume + the futures falling hard = a loss for me. Lesson learned.
can anyone tell me how they would trade these FTT? i dont particularly like GROW, it just happend to be the one drew channels for and noticed the FTT.
See attached Daily Chart for GROW. Price did form an FTT of the Orange Down Channel on Monday. Currently, Price sits within a lateral channel showing decreasing red volume. One needs to look for increasing Black Volume (on a PRV Basis) to enter long. One needs to see increasing Red Volume (again, on a PRV Basis) for a short entry. Should you see a second FTT (one with a higher low than the current FTT) form within the Orange Down Channel, then you'd have the beginning's of a Point Three Up Channel. At the present pace of Volume, look for GROW to remain on the Dry Up List for Monday. - Spydertrader <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1390075>
thanks for the explanation spyder. however, i do have one question on FTT though. how do you determine if a candle is FTT... i mean i know we are looking for the current short term traverse to fail to go the same direction as the dominant traverse (the big big 3 channels we have in grow) but within grow's big downward channel, there are many many candles that never touched the bottom of the channel.... so why is our FTT the only FTT? how about t he other candles before that that never reached the bottom channel? we are looking for a green candle that open and close higher than the lowest low of the red candle... like our ftt right? but what about the + doji 2 or 3 bars to the right of the biggest green candle in the middle of the chart? that candlestick open and close higher than the previous red's low didn't it? so is that a FTT as well ? or how about that other FTT i drew in my grow chart
It isn't the only FTT on the chart. It's simply the only one I marked because you asked me in the ET chatroom if that particular candle was an FTT or not. - Spydertrader
so does it mean that as long as the candlesticks doesn't touch the bottom of the channel in a main down channel. and when there is a green candle that close higher than the previous tape or short term traverse's red candle's low, then that makes it a FTT? just wanna get things in perspective.
Guys, I can't emphasise the importance of checking earnings dates and news. I forgot to check yesterday and so was long GMKT going into their earnings announcement. Just dropped 12% of my account on a single trade. It's painful, but since it was all 'profit', I know I'll earn it back. Jack is also right about feeling more comfortable playing with profit as opposed to core equity. I think if this had happened a couple of months earlier, I'd be completely stressed out.