The purpose of this journal is to examine the different styles of "Intra-Day" market timing methods and provide hands on learning for all those interested in learning one of the most (if not the most) difficult method of extracting money from the financial markets on a consistent basis. There will be NO "flaming" in this journal. ALL rude & off topic post will be ignored and deleted and I will ask the moderators help in keeping this journal clean. No personal attacks will be tolerated! My goal is to ad value to ET by giving tutoring to those that request it. I have created a "Trading Plan" complete with rules on entry, exit, stop loss, and profit targets. Position size is up to the individual's risk tolerance and preference. Although I am a Discretionary trader by nature I have attempted to automate alot of my analysis so that I can be free to examine changing market conditions. I trade on a multiple of timeframes such as Weekly, Daily, 60 minute, 5 minute, and 1 minute bars. My primary indicator is the "Swing Vix". The Trading Plan has all of the rules included on how to interpret the Swing Vix. I do hope to spark some lively discussions in this thread as I will unveil some of my strategies along with some of the methods I employ while engaging in market analysis. I will also as time permits post some realtime trades so that students will have something to go back and study on their own time. Some of the topics that will be discussed: discovering the "Holy Grail". What is the "Holy Grail" Answer: finding a developing trend and following it all the way to the end. A1.) In an uptrend, Buy every Breakout into new highs! (Best Strategy) A2.) buy every pullback into the 10 day EMA of closing prices. (this includes corrections toward the 40 day EMA as well.) NOTE: buying pullbacks can be risky because you have no way of verifying if the correction is do to light profit taking or worse--- TOTAL DISTRIBUTION! .....which marks the end of the uptrend! B1.) In a downtrend, sell every breakdown into new lows! (Best Strategy) B2.) sell every rally into the 10 day EMA of closing prices. (this includes corrections toward the 40 day EMA as well.) NOTE: selling corrections can be risky because you have no way of verifying if the correction is do to light profit taking or worse--- TOTAL DISTRIBUTION! .....which marks the end of the downtrend! Scalping 101 (in the 1990's) When scalping as it so called one is looking to manipulate inconsistencies within supply/demand during the course of the trading day. In the early 90's this was referred to as "Daytrading". However, as time progress traders started dabbling with intraday price patterns and overlaying them with all sorts of technical indicators and regression calculations on moving averages and support/resistance levels with many standard deviation models........in the long run- All to no avail. By the end of the 1999 the market was at an alltime irrational exuberance. It was not until March 2000 that the 1st taste of "Reality" started to set in- Anybody can make money in a Bull market! Once the "Shadow of the Bear" started to awaken the daytraders found themselves in quite a quandary. their systems failed to perform. What happened? They did not know how to trade but rather thought that they could because everytime they bought a stock - it shot up in value. The 2 Bar Charlie "SCALP METHOD" was designed to exploit the anomaly of time vs. price within the supply/demand on an intra-day basis without the disturbance of random price distribution. this technique will help to filter out the noise of fancy technical indicators. what I would like to demonstrate is.........How to trade like a pro using a few simple rules, 1 major indicator and discretion! Now you will be able to see 1st hand how it is done along with the daily "Trading Plan" to help guide you along the way each day providing you with a daily roadmap into the market.
So that we don't have a repeat of the last go-round this journal will be monitored very closely, and all attacks, abusive language, or off-topic posts will be removed. T-REX has also promised me that he will not respond to same, so those who do not want to add trading value here please go troll elsewhere. Thanks.
Now when I post an alert you will be able to understand and follow along. When I say 1st , you will know that I am referring to 1st entry price on the Trading Plan. When I say 2nd , you will know that I am reffering to profit targets. When I say use "Brkout trigger" you will know that I am referring to intra-day support/resistance levels. When I say "2BC Channel", you will know that I am referring to a Swing Trade.
Here is a sample of the Swing Vix Summary that is included in the daily "Trading Plan". This is also from the 19th Dec 2003:
Alot of debate has centered around the use of 1 min time frames. Some prefer the use of tick charts. We will not delve into that relm. Some even prefer a longer intraday approach such as 5 & 15 minute timeframes. Let's dive right in!
by now you should have noticed that there were ample opportunites to make money in ES today. What is the 1st thing that you notice with this chart? Anybody?
One of the 1st things to notice is that I have two technical indicators with this 1 minute chart. The Stochastic helps to time entries. The MACD helps to monitor price strength/weakness.