Those are the three trades that occurred on Friday for dkm. Each time he went against the 1min MACD. The situation was that he needed to wash on trades he when into . He couldn't. Why did he go in? The day's beginning was saying gap up 5 congestion during synch of 5, and there was no point 1,2,3. He went in three times for his reasons. I suggested that a person check entries on 1 min to reinforce the 5 min signals. Their were no 5 min signals and no 1 min reinforceing.
1. long rocket gap up. waited 15m for synch bought break of hod @ 902.25. 10:25 low volume inside bar after a high volume reversal bar...exit @ 902.75 long @ 902.25 sell @ 902.75 +0.50 day: +0.50 15 days: +30.25 2. short rocket 10:45 s(17.24, 18.39) macd hist -1.6 short on break of low @ 897.50 (also low of day)...mkt basing action from 11:00 to 11:15...popped a little exited at 897.50....tried to give trade some room...should have exited after 11:10 low volume bar high was broken...marked end of trend. short @ 897.50 cover @ 897.50 0.00 day: +0.50 15 days: +30.25 3. short rocket and bo from range 2:30 s(4.00, 13.92) macd hist -0.50 market bo down from range waited for rocket signal...short @ 891.00....holding thru first counter move was hard. vol spike @ 3:30 exited at 883 (too early) after 3:35 bar high was taken out. could have made more but negative thoughts creep in when up 8pts. short @ 891.00 cover @ 883.00 +8.00 day: +8.50 15 days: +38.25 all i can say is wow what a selloff.
ES03M simulated. Huge gap up and everything looked like a rocket so I switched to all sessions view. #1 rocket signal Long 9:48 901.00 Sell 10:00 901.00 rocket failed at 9:55 but held longer waiting for point 3 -> washed as 5m MACD looked like crossing down. Also cautious of long side due to gap up. 0.00 #2 rocket signal, long channel broken; fumbled execution cost me 1 pt Short 10:41 898.75 Cover 11:18 896.00 MACD 5m convergence -> channel broken -> fast line out. +2.75 #3 Was away from computer until noon (15:00 est). Rocket signal at 14:25. Bounced off right side of channel, no flaws. Short 15:28 886.00 Cover 16:08 877.25 held a few min after cash mkt close as volume was still strong fro an extra 1.75. +8.75 A hell of a trade! dawg I hope you rode it from the beginning and scored 15.00! One word on wash trades - I think the concept, as it was laid out by Jack, makes a big difference in helping you go with the flow instead of against it. Namely if the trade doesn't go your way and there are flaws you shouldn't wait for your stop to be triggered, but rather get out as close to bkeven as possible. It certainly weaned me off point stops.
Jack, Thank you very much for the detailed response. Much appreciated. To be fair, all signals were present on the 5 min at the time of entry. Macd on the 1 min was away and entwined below zero for the second trade and diverging downwards below zero on the 3rd trade. The 5 min stochastic was memoraby choppy and I guess that in itself should have been a warning. David
dawg I didn't see your post, I was typing up mine. You nailed 8.00 on the last trade in REAL money I think that's awesome. It's easier to hold through retraces when it's paper money ... it'll be hard to keep the composure when I'll switch to live trades.
There are some thread going along that you can use to compare what we are doing with their focus. The one called What an INCREDible..... in trading shows how poeple do not have specific ways to understand what is going on. A couple people lucked out and others nearly got buried. We should be collecting, daily, a portion of the H/L range without fail.Compare Friday and Monday volumes. One thing there shows you that there is price movement when the volume exceeds our middle value (10 to 12K) At the lower value (5K) there is not movement. Another thing that we have in the bank is the congestion convergence and centering sequence. After centering and on rising volume, a trend is going to begin. I felt that the posts on trades were the most spectacular so far for the fundamental reason that people are able to stay in a trend and also that they can recognize, by standing far enough away and looking, that there are no flaws appearing in the trend and therefore they have absolutely no reason to not continue to make money. Going to settlement in a day trade issomething that is just as important as practicing wash trades. I hope to see the daily take increase point by point continually from now on as a direct and simple consequence of the consciousness that it is okay to continue to hold as long as no flaws appear. when yopu read several of the current threads you can see how few actualy have a clue about looking for flaws. I really feel the consciousness here is being raised by the reinforcement we are giving each other.
Jack, No doubt it is all covered in previous posts, but could you summarize your info on 'flaws' in one message? g
This was posted in Dawg's journal but wanted to move it over here in case Jack wanted to comment on it. -------------------------------------------------------------------------------- Quote from dawg: Here is an idea... the channels you are drawing are really the key.. they show the turning points of the market... perhaps you should one day... try trading based on the channels alone.. w/o any other indicators except for volume? like today instead of waiting for the 'rocket' at 10:45 i would have been in much better shape (by about 3.5pts) by getting short when my uptrend channel broke instead of waiting for a rocket signal....that is the area i need to become more comfortable in...sometimes i am afraid of getting whipped or not confident enough in my trend lines...just need to keep working on it and get more comfortable. thanks. -------------------------------------------------------------------------------- I traded with trendlines before reading some of jacks stuff and coming from my point of view much of what he has presented has been a great addition for me. I did not use any indicators before, but have found that using the indicators have been a great way to help me stay in my trades longer and usually gives me a double confirm on my trades and reversals. What I was seeing was that I was not staying in trades long enough when I traded. So the indicators give me a continued reason to stay or get out of trades. I am still trying to figure out the order of importance I want to base my trades off of. My number one is still my trendlines, but I get confused when say a MACD crosses down yet the stochastics continue to stay over bought. Right now I just use that as a indication to be alert for a possible end to the trade and reversal and then wait for the stochastics to also follow thru for confirm. Also I am still playing with the 1 min charts which I did not look at before -- only looked at the 5 min. But it makes sense to look at the 1 min when the 5 min looks like just big bars of nothing. I am still trying to figure out how to do trades if any based on the 1 min when this happens.
Ice bergers unite!!! Do you see that VDU's are followed by volume lines of a particular color? When you see the STOC go back to 50%, does a VDU follow? Go to the tape. See the STOC going to the trend..... 13:15 is arriving at 14:00 plus today.