Yeah Cornix was saying a few guys on his blog had caught the 123 and wtg on that as it is a sound technique when set up properly. Cornix demonstrates a few valuable twists on the technique that he has developed. I had the 50 level already mapped out but couldn't be sure about the exact timing, so I called this as a pop or drop level meaning it was going to be a major move either way and my expectation was up based on the 1 and 2 hr charts and probably the 4 hr. I was short and reversed long on the first reaction on the left of the chart, reversed short on the double top and then reversed long on 51 so I didn't wait for the 123. The 1st reaction gave me the confidence 50 was good support and as soon as I saw green it gave me a tiny stop for a huge RR. We were discussing this in the room before the 50 level set up and I was pretty sure this was going to be a big mover, but it wasn't until the 1 and 2 hr charts confirmed that I could see the 4 hr was going to boss the trade. I very seldom take 123's or 2B's as I expect to be in the trade before those signals confirm so they kick my trade along.
In that case here's my real-time trade posted here. http://www.elitetrader.com/vb/showthread.php?s=&threadid=238755 And i'm still a rookie compared to Xspurt and Cornix. I can honestly say without Xspurts help over the years there'd be zero chance of me being confident enough in a trade (actually almost no doubt in this case) to post real-time trades here with any degree of accuracy. Without a doubt I would still be where you and Hurricane are at the moment. Amazingly it's STILL a drop in the bucket compared to what he's posted, well in advance, on this site. We're not talking 1 day 1 turn type of things. We're talking 5-6 months out with 4-5 turning points and pegging it to the day. That's what I love about this site. You can post the most valuable information and it's soon forgotten like it's yesterday's junk mail. It was what I consider one of the top threads on this site.
It took some looking into Linda Raschke's work to fine-tune the previous grail for something that actually really makes some money. But what fun is that?
Thanks Mods for cleaning the thread. I understand that some will get inspiration and hope and want to dig deeper while others will decide if they can't do it then no one can and do their utmost to wreck threads and thus ET. Such is life even when you offer free help. Trading is never neutral so some will learn and some will blow a fuse, get frustrated and end up bitching and name calling. Just to be clear and fair to those who are asking about our trading room, it is closed to new entrants as we have been trading together for years and know each others set ups. Bringing in a bunch of traders new to us would result in lots of questions and disruptions so sorry folks, but there is no point in asking and we are not charging room fees. However the good news is that Cornix is giving away free money here as these set ups really are traded, are high probability winners and you can learn proper safe techniques. The higher level stuff is not posted as it is our edge and would take hundreds of pages and a few years to learn. Because of the bitching that goes on in ET we only post basic level techniques. Even saying you can trade with tight stops for big profits brought a storm of protests. Read, study, learn and enjoy
Thanks for the reply, Xspurt. Agreed, this is a great journal and Cornix and I trade similar setups. I'm curious, how often are you able to make calls like this? Also, what were you looking for on the 1 and 2 hr chart, possibly the 4 hr? I recognize this is tradecraft. But there's always something new to learn. Cheers
Tradecraft is a good description. I totally agree, there is always something new to learn, and somethings it's regardless of the experience of the trader demonstrating an idea. Before I answer, tell me what you see on the 4hr chart. What's the signal now? That will help me answer you better.
4H broke above the down trend line, and it is consolidating. I see resistance in the daily, so I would not buy here, if I were trading the 4H tf, but wait for a pullback to 1.3100-1.3130. This would change if there is a strong BO above Friday's high or a strong drop below the trendline.