Hi Ty Thanks for posting your trades. I'm a n00b and didn't see much movement today other than the double top around 12:30ET. I didn't see the breakout of the consolidation around 11:30ET or any entry signals on the way down during the morning decline. What signal did you take to go short around 3ET? Thanks JW
Hi Austin, That's an awesome insight. We create all illusions in our head, the market is always right. I get the idea that I should look at the 5 sec/89 tick chart for timing only if the 10k vol is forming a overall entry signal. However, could you please specify when exactly do you make the switch? ie. In a 3BR or DT/DB formation on the 10k chart, do you start looking at the 5 sec chart when the 3rd bar in the 10k chart is complete or is it something else? I would be most obliged if you or someone else could annotate the attached 10k vol/ 89 tick chart with a 3BR for when to switch over from the 10k chart to the 89 tick chart. Cheers JW
Hi Austin, What would be a good volume chart to use as the filter chart if you use the 1000 volume chart for entries on the N.Q.
JW, There was a 3BR pattern off of the lows at 11:30 and top of 3:00. As stated I missed the short at 3:00 because I thought we were going higher. Ty
<i>"I would be most obliged if you or someone else could annotate the attached 10k vol/ 89 tick chart with a 3BR for when to switch over from the 10k chart to the 89 tick chart."</i> I'll start by saying I don't use bar breaks for entry signals myself, except for a rare occasion when I fade an extreme move with specific failure patterns. Other than that, I rely on two - three different entry signal setups according to which appears first. With that in mind, there is usually more than one entry signal in a given price area coming out of congestion. But the use of two charts is above & apart from what entry tactics a person elects to use. There really is nothing specific to annotate, because the range of price alignments over time will be an endless array. No need to fret over small details. The big picture is all we need to know. If a 10k-V setting is chosen as our single decisive chart, it supercedes all. We are watching that for price action to reach = react = confirm around specific price points deemed critical. When those price points are reached, the 10k-V chart is in a time of decision confirmation. Our entry-signal arrangement (whatever it is, doesn't matter for this discussion) is in a state of flux... we are watching for it to confirm on the 10k-V chart. When we see the 10k-V chart setting up for a potential entry signal, switching view to a smaller chart is drilling down into what's going on there with a finer view. If the same entry-signal patterns are confirming in the small chart we'd expect to see in the bigger chart, taking trade entries right there is the act of anticipating confirmation on the big chart. Usually (not always) when the same entry-signal confirmations appear on the fast chart while 10k-V (or whatever filter chart) is in process of confirming signals, the signal will confirm on both charts eventually. Again, using this approach is a compromise. Some of the trade signals confirmed on the fast chart will fail on the bigger chart. Others that would have blown away without chance to fill on the big chart will give ample time to fill on confirmed signals from the smaller chart. The choice is deciding which objective matters to you most: filtering out more potential losses while likewise missing some solid winners using a big chart alone, or taking more signals and catching more of the otherwise missed profitable signals while accepting more losses on false signals too. Absolutely everything we do in this profession is a compromise of choices. There is no black & white... none. Are you an aggressive trader who prefers to handle more trades taken, catch more wins while dealing with more losses in the process? Or are you more passive a trader who prefers to filter out only the clearer signals and fewer losses while content to miss some solid wins here & there? I will add that no serious professional emini trader EVER fixates on catching every wiggle and jiggle that crawls across their chart. Consistent performance includes maintaining strict discipline. Part of that includes accepting the fact that some signals will simply blow away, period. Doing our best to safely catch many = most of them is important, but fixating on catching every wriggle leads to curve fitting, chasing trades, getting caught in chop and a host of other ills. If you are adept at cutting losses short, taking more trades can be better overall. If you struggle with handling losses deftly, letting the bigger chart eliminate more of them for you can be better overall. There is no ideal solution... just choices.