Trading a reversal after a range BO that is successful (i.e. one with follow thru) then a test of the BO point. This basically means I am getting long on a H3 after the BO PB. These sort of strong BO’s usually have two or even three legs up so it is not that big of an issue if you miss first leg up because you wait for a test of the BO point (top of the range). H1 is second bull bar after the test of the BO point. Then we get another Pb and H2 is bar with big tail n top. H3 is two bull bars later.
Here are a few trades I took this morning in MES. Two straight scalps and an averaged down short trade and an averaged down long trade. I started trading after 9:00 a.m. so I missed the HHMTR but wanted to show it on the chart anyways as it, in particular, has to do with my reasoning for the averaged down short trade. I will later maybe this evening or tonight (as I have some sheetrock work to do in the house) give an explanation of the trades I took and why I took them. I also want to delve a bit into R:R (reward to risk). So, I will also show the same trades on a 5 min RTH's chart, a 2 min RTH's chart, and a 1min. I think entries and exits will be easier to see and the points made about R:R will be clearer on the smaller TF's. Also, I will touch upon SL's. I want to emphasize that the process is the same trading MES or ES or NQ ..whatever. And the profit varies on the position size that one's SIM account LOL allows one to trade. But the process is the same. Small SIM account traders and large SIM account traders can trade the process. Of course, risk in terms of $ will be more (depending on the account size) but not in terms of movement against one's position. The latter remains the same. It is a process one is trading. That process is composed of various things of a strategic and tactical nature. I hope I am explaining some of those elements as I trade. If you think you are understanding them then just practice live on a SIM. I will not tell you to trade these things with your real money. You can lose your billfold and shirt (if you catch my drift) trading futures and stocks. Whatever you do with what I am showing in this journal is entirely up to you. I make no recommendations or advice. I am just showing how I trade. Hopefully, it will give you something fun to practice with on a SIM and pass some time away as you trade your own strategies and tactics with your money. LOL
@volpri talks about this in the first post of this, HIS, thread. FWIW, through reading his posts from time-to-time, I *think* @volpri is for real. He has clearly demonstrated to my thinking, that he has spent time in front of a screen, honing a few specific methods and techniques. Whether his time and results was/is/are fake(sim) or real is of no consequence to me. In the first post, he also speaks of his ego... clearly this thread is a personal outlet for him. With a few nuggets worth exploring further for the "always learning" minds.
I agree Tiddly. Volpri is a good read . One can try try and adapt one's trading to be similar to his. No point seeing his fills. it will not make me a better trader. But what makes me a better trader is to take what Volpri offers and try ( yes make an effort and demo etc) it for myself and examine the results and adjust etc.
I want to point out on the 24 hr chart (in post #553) a few concepts. While I did not take this trade as I was not yet trading until 9:05 I want to make some comments about the HHMTR at 7:50 a.m. Just to reiterate on MTR’s: 1) first you want to see a trend. 2) Then a break of the trend line that preferably goes to or thru the 20 ema to show in this case “selling pressure” in a bull trend. So, we get a break of the orange trend line and the PB goes thru the 20 ema. 3) Next we want to see a test of the previous bull trend High. This test can not quite reach the previos high or it can go past it. In this case it went past it creating a HHMTR (higher high major trend reversal. 4) Next I like to see a good signal bar. That big bear bar at the top was the biggest bear bar in the last 24 bars. It was also bigger than any of the last 24 bull bars. While that point isn’t necessary to take the trade it is best to look at shorting below bear bars. Bottom line is the signal bar was a good one and a big bear bar and showed likely weakness to follow. 5) next execute an entry on the next bar (entry bar) 1 tick below the low of the signal bar. 6) Stop loss goes above the high of the signal bar at least one tick above it or maybe a point above it. That is up to the trader. 7) take profits on any logical move south. I will bring up logical place for for PT in a subsequent post in a few minutes. That is basically the process for MTR when the original trend was or is a bull trend.
Here are the 4 trades I took. First was a straight long 2 point scalp just outside the lower 1/3 of the range. Second was an averaged down short 3 times after the initial entry. I made profit on the three averaged down positions of this second trade but lost 2 points on the initial entry (see dashed green line to connect exit with initial entry on the trade). The trade overall was profitable. Third was straight long scalp 3.25 points in lower 3rd of the range. Last fourth and last trade was a 2.5 point averaged down trade in the lower one half of the range. Now understand the range box was drawn after the fact because a range is not a range until 20 bars sideways movement. Less than 20 bars and it is counted as a PB. The only trade that could actually be classified as range trading was that last trade #4. By then it was a range. I am showing another 5 min chart RTH’s that shows more bars to the left. So you can see this better and count the bars in the range since the open. Please understand while I show this RTH’s as a range none of the trades were made off this RTH’s chart. When I took the trades I was not range trading. They were made off the 24 hour chart in my post 553 above and hence it was NOT RANGE TRADING. Nevertheless, from A RTH’s chart the range appeared and I drew it in. And the blown up 5 min RTH’s chart shows the trades better than the 24 hr chart. Later today (as it is 1:39 a.m.) I will add Some more charts to discuss things like R:R Profit taking and stop losses in these trades but I now have to rest. It is late.
Will show some trades today then later get back to Friday's trades. Trade I took on the ES this morning averaging down 1+1 contract. $225.00 before comm. Trade take right after the open. Rationale: Open gap up. My carcass was out of bed so might as well take it. I reason it would at least go up a little more, enough for a scalp until we see what the market will do as it settles in.
Took a second trade. Short scalp. One contract. Rationale. Forgot to cancel my SL on the first trade. It got executed so I just exited right away with a 75 dollar gain. Now you know where my SL was on the first trade. Still am not awake real good. Got get that second cup of coffee. At this point up $300.00.