The way you're using the phrase "very good price" indicates a mindset that is not conducive to consistently profitable day trading, IMHO.
Question. If you did go long off the bounce at 19 where should your exit have been based on your plan? The proper exit eliminates many re-entries. Essentially my goal was to enter at a better location to avoid getting trigger happy.
That's interesting. I tend to say "better price" as I am comparing one entry method to the traditional SLA entry from my previous testing. Are you saying that saying very good price opens the door to being too attached to that very good price? Lol
The loss will be smaller, but you'll have way more losses (including way more commissions) because this sort of chart does not help you know exactly where to get in and out for the best odds in your favor, unless you're a micro-scalper looking for a few ticks per trade. Have you ever tried to trade in real time with a micro chart like that? You'll have a few "perfect entries" and then get addicted to random rewards (nothing feels better to our egos than getting in a tick or two from a price turn on a decent swing) and end up very, very lost. Developing a trader's mindset is difficult enough when you're not lost in a quest for unicorns and holy grails. What you're doing is what "lost" looks like. What you're feeling is what "lost" feels like. What you're saying is what "lost" sounds like.
I'm not sure I understand why this would be. Using a lower time frame chart, such as the 5 second one that I am looking at or a tick chart, along with a very clear level you are watching and what you need to see at this level to decide if price is going to reject this level of penetrate does I think get you into trades very quickly with a tight stop. Just a few days ago (Jan 2), Db and 40D were discussing the short at 4272 when price approached this level 30 mins after the open. This level was the previous day low. I think 40D said he got in just a few ticks below this, with a stop just above at around 73... so he had only a 2 point stop. It worked beautifully, and I think many of his trades are with this laser precision.
Why do you need a micro-scale chart to get in at that price? Just place a limit order a tick or two inside the price! If it works, then laser precision! Whoop-dee-doo. You're on the wrong path, k p. THE. WRONG. PATH.
My plan revolves around what feels good! I may have very well bailed at 4137 when price came to within a point of the OH. It went from the high of 37 down to 29. Now sure this is a regular RET, but if I got in at 22 or so, and made it to 37 and saw price coming down from just below the OH, I'm sure I would lock in profits. Over the next several minutes I see a range, then a poke below, and also a series of higher lows, but in my current state, I doubt I would still be holding.
This is where behavior comes in. The idea is to watch for what traders do at this price. Do they look like they want to push price higher or have we run out of buyers? Seeing the lower high and lower low on the 5 second chart or tick chart just gets you in a little sooner than waiting for price to drop below the low of a 1 minute bar. Don't get me wrong, I'm not searching for laser precision right now... I'm searching for consistent profits... but I do believe that watching the tick chart at these important levels gets you in sooner, and makes your stops tighter.