SusanaDT Registered: Sep 2007 Posts: 188 New Post 07-24-08 03:45 PM Quote from sandygray66: Nice 123abc. Hope you actually got all those trades. What's your entry technique? A 3 bar reversal pattern like Susana uses (with the magic tick entry), or just put limit orders out there at the resistance level, or look for a stall on a faster chart at the R level, or??? I don't think he is using bars for his entry. Looks like he enters on resistance or when immediate uptrend line is pierced and just hopes for the best with a 5 tick stop. No idea on the exits. Great on trending days but most of the time that is not the case, so I'm sure this is an exception and not the rule, otherwise he is just phenomenal. Susana Yes I executed all trades. For the most part I identify support and resistance from prevoius highs and lows along with the use of trendlines. Key patterns in trending markets I use is support turning into resistance. I place orders a tick or 2 below what was previous support)today) with stop two ticks above old support that I expect to turn into resistance. I scale out trading units of three. I take two off when I get 2.00 points profit and look for 4 points on trailer. I use a 1.25 trail stop after first profit target is hit. I wish I could say I trailed the whole way down, but I can't. On days we are not trending I lower profit targets to 1.50 points and 2.50 points with a B/E after first target is met.
Cool. Thanks for the details on your entries and position management, 123abc. Congrats on an awesome day!
Dear Susana, It will be nice if you can discuss in some details on what is the best entry technique to use in order to trade those amazing setups on you charts. For example, do you use stop limit orders or market orders, and do you place your orders after or right before the setup is completed etc. Thank you very much. Holt
You got two options: 1) The easy option, limit order once you have calculated the confirmation point and just wait, it will place you in the queue you most probably will get filled but there's a good chance for heat and your stop is usually around 2 points. 2) The harder option, once it happens, try to get a better fill and risk missing it altogether but you must be fast and never ever chase it if you miss it. Remember, these PA setups must have the backup of support or resistance or you are just asking for trouble. Susana
Susana, Once again, thank you for taking the time in responding and illustrating everything with such clarity. One argument I cannot let pass is using "3BRs" and "Matching Lows/Highs" vs entering like Trader123ABC at the support or resistance level. Could you please expand a bit on this? Much obliged. Daniel
I'll weigh in on this before Susana replies. Using a 3BR or Matching Hi/low with magic tick entry gives you additional security that price is reversing in your direction (i.e. pullback is over and trend is resuming), demonstrating that the S/R level is holding to some degree. However, you sacrifice a few to several ticks on entry for this additional security versus using Trader123ABC's method of placing limit orders just under resistance levels or just above support levels, hoping that those levels will hold this time around, without any immediate price action demonstrating that they will. It's a risk/reward trade-off. Not sure one is necessarily better than the other.
It's not that original I'm sure, and I have no problem sharing my take on it, but I thought it might provoke some thoughts from others and make a good discussion topic, so I would prefer to refrain for the time being, in hopes of encouraging further discussion. btw, is that a run-on sentence?
Do you see me refraining when people ask for help on how to do certain things or perhaps you don't know how to do it either and want us to the thinking for you ? Let me remind you this is a thread for sharing. Susana