you are right about the timing of a scale-in {short for this example} and a breakout above a resistance area you are scaling into below would just cause you to flip/reverse your position and ride it for 4 to 8 ticks to defensively get you back to b/e with a few runners left {if you want} to gain any additional part of the breakout run for profits --- we do this all the time in the ioamt room successfully. and yes the market profile method traded by Billy and others in the room that have learned market profile are very profitable on a weekly basis. my swing trade is just at and below two market profile s/r levels so that was another reason for my entry {also remember how key the ES 1230 level was when it broke and we fell down in October} --- it was as good of an area to try with all the recent price history at these levels. 1218.50 was a key market profile s/r level and i decided that was too low to start a swing trade from --- this area i have my reasons for. i agree if a swing trade level is picked incorrectly then you have to either be willing to stop out when your chosen s/r level is broken through, or you have to reverse HEAVY and ride the breakout to at least get your whole position to b/e {clean up the losses up to the flip point}. so yes if price just space shuttles against you after your full swing is in place you MUST have a trade management "tasking" to handle the breakouts through your position. if {and a big IF} you have a method that can pick good points for swing trades, then very few times a year would you be in the situation where you are having to go defensive fast on a "failed" entry price selection level {where you try to start a swing trade}. additionally if you can have and use a trade entry method with a "position entry replacement" capability you will have the potential for additional flexibility for the proper initiation of your swinger. basically you have to do some "entry juggling" until the price breaks in your trades intended direction hard. and yes myself and several other traders in my office are now paying ioamt members --- this has been the best $100 a month that i could spend in my honest opinion to expand my trading capabilities.
Macro Thanks for the explanation much appreciated. It looks like an excellent strategy for intra day. It kind of reminds me of a mini version of the way PTJones used to trade. Keep banging at strong levels until you nail a top or retracement level. Once again Good luck with the trade.
Absolutely!!! and i do this often but every time i describe this method in threads here at ET i get all kinds strange reactions, so for the most part i just do not bring this up anymore --- people will have to figure that out some day on their own. and you are welcome!
btw --- for those interested i have noticed that Billy added a "basic" market profile type introductory section to his website --- here it is --- http://www.instituteofauctionmarkettheory.com/Courses/MP/index1.cfm and i also see that Billy has moved the IOAMT free trial to 30 days from 14 days and this is a good move imo --- there is a lot to learn and comprehend for market profile and 30 days is at least needed for a proper exposure to grasp the intelligence of the whole methodology.
yes it is ---- Billy was just talking about a PTJones video friday in the chatroom. and i do exactly what you have mentioned --- keep taking cracks at what could be {from a probability reasoning} a new top. you will never know when a top is in place until after the fact ---- this is just like when "courage " arrives in life. Courage in life always comes AFTER the difficult task is actively attempted {you are scared while attempting the endeavor but you do it anyways}. people that wait in life for the "courage" to do something difficult will wait forever --- the reality is, courage suddenly shows up right as you have accomplished your feared endeavor. took me a long time in life to learn this one -- lol
OK --- filled the 36.50's at 36.00 even overnight. also i have pulled my targets for my 35.00's {they were at 35.25} ---- will hold these a bit to see what happens the first part of the open today.
OK holding 1239.75's {average basis} and gave back all the 38.50's at 38.00 even ---- moved stops up to 1247.00 {5 points plus all the little extras i have earned the last two days through the order/position replacements}.
Today i was only able to cover my 1235.00's at 1234.50's --- never did get any 1234.00 covers, so i am now holding all 1239.75's going into tomorrow {and the overnight}. if the PPI pops up tomorrow then i should get the follow through i am looking for -- if the PPI is decent and they run the market up hard out of the news releases then i will be ready to flatten everything and look for a new higher entry tomorrow or later in the week.
well so far today all i have been able to complete is get my cost basis to about 1240.25 --- the news today was glass half full or half empty, with no big explosive move --- what else is new with government numbers. HAHAHAHAHA! price moved up to put in a multi-day double top so far with no volume excitement above the 40's --- so the breakout capability was not there today earlier. well i better talk about my targets on the way down --- i will cover 1/8th of my position at the 1218.50 level, another 1/8th at 1210.50, and then another 1/8th at 1202.50. from this point i will evaluate the strength of any move through the SPX 1201/1200 level and then determine where the next 1/8ths will be covered.