Just wondering the significance of the "89 tick chart" Why do you use both Bollinger's and Channels? Seems to me the price would hit the channels thus negating the use of the Bands... Please correct me if I am wrong..... Thanks -Matt-
Hi Ditch, Is it possible to get the Ensign template for your channel system? tonkadad@yahoo.com regards, Bruce Hawkins
(no additional comment necessary). Let's crack'em again this week!! ... (it's funny how a guy like Ditch thinks he's "experienced"). green doggy dog
See there, Ditch. No good deed goes unpunished. Thanks for posting a trading idea and taking the heat on it. Good work. Doesn't really matter if it works or not, anyway. It's how you get out of the thing that makes or breaks you. Kinda like a post-graduate work thesis - where you present it to the faculty, and they take their best shots at you. But somehow I believe this particular faculty is not 'tenured'. "That Private Joker's silly and he's ignorant, but he's got guts... and gut's is enough." - Senior Drill Instructor Hartman in the movie 'Full Metal Jacket'
nihaba, on the 1 min, I used ditch's stoch settings 21,10,4. (Not real money, just fooling around today.) Man I wish I'd known a little about stoch before. That would have saved me some pain. one rule becomes very obvious, even more so on the 5 min. Never fade a channel when stoch is above 30 or below 70. so these settings mean 21%fastK, 10%fastD and 4%slow D? do I have it right? Funny, all my good long trades set up around 20 on the stoch, and all my nail biters set up between 30 and 70. I'm going to start trying to fit these stochs in. I've been enjoying 5 min, don't know if I want to go back to all that decision making on the 1 min. After the 1 min, the 5 is sort of like trading against people who don't care.
I SHOULD POST THIS: "Read it all. Wow, what a bunch of splittin hair p*** ants. Ditch or Dutch or whoever SIMPLY gave a great TIP to the world to watch the trend and be ready to go with the trend at extreme opportunities. If he thought it was a complete system, So What? However, there is more to it than that so here a second TIP: The look and angle of the BB says a lot to me everyday. Without news, when the BB is flat, price seems to touch and reverse, if price is building slowly thus forcing the bb to move in tandem up with price and then price touches, I usually see it keep on trending up. It also tends to trend up if the price is coming at the reverse angle of the BB coming down. Anyway, The smart money is probably at the opera or sipping Mai Tais after snorkeling instead of posting how to really trade in these forums. - Too much hassle! I would probably have to defend myself for 16 pages if I started a thread called "2+2=4". " -BUT IT'S JUST NOT WORTH IT.
At any rate, this all falls under the heading of garbage zone trading. When there are no free zones to trade, you just have to admit the free market you're trying to trade doesn't exist, and when we are out of the garbage zone, you have to admit it and don't try to trade it like garbage. And we've been in some nice garbage now for a while.
no, there's a huge difference between the bands and the channels. Especially if you are using them for a target. The bands can move away from you as the market moves against you. The first day I tried this I was short going into that .50 rate cut. The market was going to the moon and my lower band target was actually moving even farther down. That's what hooked me on the possibilities here. I ended up with a 1.25 profit and flipped and took the long side at the lower band and the market kept going south and I eventually walked away profitable on that one also. Any other method would have shaken me badly. There's a lot more to all this than is ever going to be or can be posted. It's just something to think about. As long as you don't forget how the big money is made. The straight trend trader will make more in one day than I make all week. It's just he knows which day of the week to trade. But to answer, the bands tell you the extreme levels, and the channels tell you the exact known past. And the trader decides which one if any is meaningful. For example, what does it mean if prices can take out the channel but they can't trade at the extreme? It either means they are weakening or going back to get more power. What does it mean if the extreme high is below the channel? It means what used to be thought of as high is now lower.
You will enter on the opposite side of the channel, so this causes you to enter on the first retracement in a trend and not buy the actual trend reversal, which is a recipe for disaster on the ES. Of course whith this kind of trading you get stopped out losts of times, but your losses will containd, because you chose a favorable entry point. I've tttached a chart of a downmove that you woulkd miss using this setup