T-REX Journal - "Scalping 101"

Discussion in 'Journals' started by T-REX, Dec 23, 2003.

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  1. T-REX

    T-REX


    I think I see where you are going with this. We seek to sell resistance and buy support in an uptrending market. today's bias was on the long side with a "wait & see" for a huge intraday reversal that did not happen today.

    NOTE: if prices drop below intraday support then that "support" has now become resistance. we will examine this with some realtime trading examples.

    you are on the right track though.
    :)
     
    #121     Dec 29, 2003
  2. traderob

    traderob

    DP+"Now if he were to explain how to code these indicators that he seems to rely on so heavily, OR use indicators that are available to everybody, OR to explain what makes a setup and why one setup is superior to another, either inclusive or exclusive of indicators, AND something about entry and exit, THEN he'd be at least in the ballpark of mentorship"

    ========
    T-Rex, this seems a reasonable request?
     
    #122     Dec 29, 2003
  3. Magna

    Magna Administrator

    All further posts not specifically related to trades posted by T-REX, or his strategies, will be removed. While I see little merit in black-box methods there are many people at ET who find worth either in his calls or more likely in their ability to cull pertinent information from his posts i.e., reading between the lines. If you don't find value here then please move on, you are wasting your time in this thread.
     
    #123     Dec 29, 2003
  4. What is/was the EGo challenge? a live competition? just curious....
     
    #124     Dec 30, 2003
  5. T-REX

    T-REX

    2 Bar Charlie "Live Demo"

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=23300&highlight=EGO+CHALLENGE

    2 Bar Charlie "Live Demo" Question & Answer session

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=23343&highlight=live+demo


    Bully on the playground

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=22585&highlight=EGO+CHALLENGE


    "EGO CHALLENGE" (26 Sept 2003)

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=22589&highlight=EGO+CHALLENGE


    "EGO CHALLENGE" (29 Sept 2003)

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=22716&highlight=EGO+CHALLENGE


    "EGO CHALLENGE" (01 Oct 2003)

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=22807&highlight=EGO+CHALLENGE


    "EGO CHALLENGE" (02 Oct 2003)

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=22869&highlight=EGO+CHALLENGE


    T-REX Journal (w/track record)

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=21684&highlight=TREX+journal

    _____________________________________________


    2 Bar Charlie System (Screen & Chart set-up)


    Tools.

    Use the EOD Swing Vix Indicator.
    Mark yesterday's High & Low.
    Use the 60min Candlestick chart to find current intra-day trend.
    Use the 5min &/or 1min Candlestick chart to time entry point.


    Technical Indicators.

    Use a 40-bar EMA.
    Use a Stochastic Line Chart (14,3,3 time periods)
    Use a MACD Histogram Line Chart (5,40,5 time periods)


    Chart Rules.

    When the 5 min bar crosses above the 40-bar MA = buy.
    When the 5 min bar crosses below the 40-bar MA = sell.


    Filters. (Are not necessary but are useful)

    (1.) Wait for the low of the 60 min bar
    to close above the 40-bar MA = buy.

    (2.) Wait for the high of the 60 min bar
    to close below the 40-bar MA = sell.



    Trade Set ups of the 2 Bar Charlie System

    *"Momentum-NEUTRAL" ENTRY Days: Consolidated intra-day plays. These days are more common after a significant rally or sell-off they appear during a brief period of consolidation within the trend. Watch & Wait for the pullback toward Intra-Day SUPPORT/RESISTANCE to be confirmed before placing the buy/sell order especially if the days close is above today's price trigger. See *Trade Entry Rules.

    *"BREAK-OUT" ENTRY Days: These days are less common but have a very high accuracy rate and are major trade signals. These types of breakouts tend to be very powerful moves and are typical within the current market trend. Usually, they occur while in a brief consolidation within the current trend after a strong move (but not always). See *Trade Entry Rules.

    *"TRENDING" ENTRY Days: These are days were the market is expected to rally after a pullback. See *Trade Entry Rules.TRADE ENTRY RULES: Wait until after 9:30am EST before trade entry. Cancel order if not filled by 11:30am EST. NOTE: In a Bullish 40-Day Trend Do Not place the buy stop-limit order if after the open the market is trading above Intra-Day Resistance and or yesterday's High. In a Bearish 40-Day Trend Do Not place the sell stop-limit order if after the open the market is trading below Intra-day Support and or yesterday's Low. Refer to the intra-day 60-min & 5-min charts for a possible reversal of trend signal before placing the trade. The system is on the sidelines unless the entry point is triggered.

    *Profit Target: = 1.25 - 3 points. The profit target is to be used as a guide to either move your stop-loss to breakeven or take profit in uncertain market conditions. You may also use the profit target as a working limit order if you don't have the time to watch the market and would like to take quick profits.



    *Trade Entry RULES:

    (Watch & Wait for support/resistance to be confirmed before entry. On occasion you may have to actually enter on the "BreakOut" or "Resistance/Support" triggers if Support/Resistance is confirmed but either the 1st or 2nd trades are not triggered.

    (NOTE: ALWAYS trade in the direction of the BIAS/TREND.
    If 1st Trade is triggered then use 2nd Trade as a profit target and/or Stop&Reverse.

    NOTE: If prices collapse below the “Intra-Day SUPPORT” then use this level to catch the reversal on the “long” side. Likewise if prices rally above the “Intra-Day RESISTANCE then use this level to catch the reversal on the “short” side.




    ...........the 2BC SCALP METHOD in a nutshell.


    T-REX



     
    #125     Dec 30, 2003
  6. traderob

    traderob

     
    #126     Dec 30, 2003
  7. T-REX

    T-REX



    _______________________________________________

    Please take the time to read thru and study the above before proceeding with today's trading plan.:)

    T-REX
     
    #127     Dec 30, 2003
  8. dbphoenix

    dbphoenix

    And, again, how does one plot the "swing VIX indicator"?
     
    #128     Dec 30, 2003
  9. T-REX

    T-REX


    You do not need to know "how" to plot the Swing Vix.
    What you need to know are the "rules" for interpreting it.
    If you can't understand simple trading rules how can you understand how to plot an indicator?
     
    #129     Dec 30, 2003
  10. dbphoenix

    dbphoenix

    Unless it's plotted, there's nothing to interpret. Are you saying that it will be necessary for whoever follows your strategy to depend on you in perpetuity to plot this indicator for them? Or do you plan to explain how one can plot it himself? If not, are you willing to explain how to employ the strategy without the use of the "swing VIX indicator"?
     
    #130     Dec 30, 2003
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