Hi, If you took that trade ( on that bar 9:53 ) , perhaps you were stopped, unless you use wide stops. For 1 min set ups I wouldnt use more than 1 min bar average range. In situations like this one ( shown on the chart) I like to be patient and wait . Reasons are : There's a gap (RTH ) so I like to wait to see how the first 30/60 min of trading unfold , and be ready to trade the break ( down of the pattern in this case on 10:05 bar) .Gap was filled The first 5 min bar ( 9:30) pulled back on high volume ( actually the highest of the day ) which is not a healthy sign for a bullflag formation. Now , if your system is giving you profitable results with your analysis...just stick to it.
Hawker, What you noted about the example that I posted does make sense. It is, of course, yet another way for one to look @ the markets to pull some profits. Someday I hope to create an additional method using higher timeframes.
After reviewing this journal from the beginning I have made the following realizations. 1. My discipline is actually pretty good. 2. After more than one losing trade in a row is when I get emotional and need to control discipline and just wait for the next good signal. 3. Divergence to price action is more discretionary than I thought. This has been realized as I am trying to put everything down in writing. As mentioned previously, recognizing divergence is the part of this system that can not be coded becuase it is discretionary. I feel that I am actually over analyzing the recognition of divergence to price action currently because of trying to put it all in writing. Recognizing divergence to price action has never been an issue in the past. There are just some times where it is clearer than others. 4. I do feel that when I am in a trade where the divergence/price action wasn't the clearest is when I start second guessing the trade and discipline may be broken. 5. To resolve # 4, I will only take trades where there is clear divergence/price action OR if YM looks so-so I will refer to ES and NQ and then only take the trade in YM if both ES/NQ look very clear with the same signal.
u can quanitfy diver. to a certain extent. like say the number of bars between the two lows. the angles of the divergance lines drawn. whatever. you may find that divergences with 5 bars or more between swing points are much more likely to win, whatever, something like that. but u gotta do research and its boring .
this was a papertrade that would have been stopped out. Had to go to a meeting. Not taking any real scalp trades until I'm trading fulltime later in August. Stalking a 1m trade right now.
the 1m set up has been going a little too sideways and has made on of the filters change as to not create a signal. Discipline will kick in here and I will not take the trade. The trade WOULD have been long 10066 in YM.