Price gapped up and out of my Orange Carryover Channel (See left corner of posted chart for today). - Spydertrader
This ability would have come in handy today. Throughout the day I kept interpreting whatever decreasing black volume there was as a prelude to a change in sentiment. Of course it never came . I have to re-evaluate my "change trigger" to account for days like today. Also, I got hung up (read: lost my way) in two laterals (10:50 to 11:15 and 12:05 to 12:50). Lastly, I know a lot of traders do not sit through the whole day of trading and take opportunistic breaks. I would love to hear how some of you are doing this. I have tried different approaches (i.e. taking breaks at a certain time for certain time periods; breaking for a few minutes every hour or so) but I haven't found a good set up where I can be at my best for the time I am in front of the screen. Ideally, it would be great to take a 30 to 45 min nap during the day, but I am so jacked up on caffeine (trading on west coast time does have its disadvantages) this is not really possible. Any thoughts on the subject appreciated. -guava
anyone sct through this period? this is what I would do if I was in. I add a white channel and the green dot indicates reverse to long, red reverse to short. very expensive trades... any comments? <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1678282> hey, this is my 100th post
In my opinion, lunchtime is an extremely difficult time to trade for beginners, especially when trying to zig zag through a lateral. Here is my take on that situation, viewing it as a long retrace of a shallow down channel.
the volume is high, let's assume for a the sake of the discussion it's a normal afternoon session instead of lunch time. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1678282> anyone sct through this period? this is what I would do if I was in. I add a white channel and the green dot indicates reverse to long, red reverse to short. very expensive trades... any comments?
Probably for most of us the better question is <span style="background-color: #FFFF00">how to identify such a period and avoid trading it</span> I think there are a few helpful warnings / hints like: decreased volume (coincides with the typical lull of the day), we're in a probable retrace to the RTL established by the opening bar's low and the 1050 outside bar's low (it doesn't look like we're at the beginning of a reversal), that period started and continued with a lot of internal formations (pennants, outside bars, even harmonics), then once it started there were several alternating r2r and b2b. So at some point a trader aware of his expertise level should've decided to sideline until the mud was over ...