Hi Kermit. I actually meant "trend day". I had uptrend on my mind. Being that the system looks for reversals against a trend, a trend day, which keeps on going, simply stops out any signals on this day.
Yesterday I was realizing that I needed to fine tune some things. Mainly, the 'not so obvious, jumping off the screen set ups'. So, I studied last night. I have been trading this system over 8 months the exact same way but not until I started this journal did I realize that I could work on fine tuning some areas. Journals are definitely good for something. Even though this journal's purpose was to work on my discipline/patience, I am finding other areas that are being enhanced. After studying last night, I have modified one of my filters slightly. The modification or type of indicator is not important. What is important is that the modification provides more precise and clearly defined rules for a signal. Also, I realized that I had shifted my focus to my indicators a little too much instead of looking more at the price action. Trading seems to be all about FOCUS, FOCUS, FOCUS. Note to self: I NEED TO LOOK FOR CLEAR TRENDS IN PRICE ACTION THAT ARE INSIDE MY INDICATOR CHANNELS. ONLY THEN, IF THE OTHER FILTERS ARE IN PLACE, MUST I TAKE A TRADE. DO NOT LOOK FOR THE FILTERS AND THEN LOOK TO SEE IF PRICE ACTION COULD SUPPORT A TRADE.
The slight modification that I have made to my filters to produce a signal helped on this one. It gave me good confidence going in to the trade and I therefore held until target was hit. I suppose that I am a bit too emotional/passionate to be considered a prime candidate for trading. However, after years of martial arts I have learned that there are many character traits that can be severely changed into a desired direction. I probably like the challenge of controlling my emotions in trading as much as I like making $ and other aspects of enjoyment with trading.
Hi tradersaavy, I don't know if you're doing it already but in case you don't may I suggest for you to watch a bigger time frame when your signal shows up ? The reason is simple.. You'll have a wider picture about what price is doing on longer frames. In this particular case ( this trade) price was forming a continuation pattern (bullflag / ascending triangle) on the 5min frame which took 40 mins to break.
I have actually done a lot of study on using higher timeframes. I was a big fan of multiple timeframe sync where a trade would be initiated when a couple/few timeframes lined up in the same direction.The initial trading method that I was trying to develop was based on this. But, I drove myself crazy watching all of these timeframes. Quite often I would get, for example, a nice 1m reversal pattern forming to go long, but the 5m would look like a bear flag so I would pass on the trade and then the 1m would take off just fine. I found that too many times a higher timeframe from my entry timeframe misled me. I am still a big believer in multiple timeframe sync and will probably find a method one day, but for now the system that I am using works. The system is simple. It needs a couple indicators to line up and then entry is taken on a trendline break. All signals are taken and only one chart, one timeframe and one screen is required. There are many times that I get a signal with this system and I do see a larger timeframe (5m) looking like I shouldn't be in this trade and it works out just fine. I do appreciate your comment and if you have any further insight I'd love to hear it. See attached chart for an example. This is from today, 7/16 right at the open.
1m may set up long (YM) But, I need to go to a meeting. If current downtrend breaks it could trigger a long. Maybe my meeting will be quick.