You have a natural inclination to communicate like an artistic trader, one can almost see the handwaving. Keeping it simple and expressing your response numerically, what step numbers would you say were a part of move #4 as defined by the text that accompanies the chart in the link below. Numbers only in your response pls. https://elitetrader.com/et/threads/...t-right-here-baby.335635/page-18#post-5309309
Thought I'd find them on the M6E going back over the last 4 days. June 2 was interesting because there were more double tops but price kept trending higher. The two double tops that occurred around the NYO never broke the neckline, so if following this pattern for entry, then a trade wouldn't have been triggered. Statistically there were 3 winners during the premarket/NY session. The European session had a losing trade. There were 2 double tops that didn't trigger sell signals. NY session: 3 winners, 0 losers Altogether 3 winners, 1 loser. HOWEVER, the June 1st double top pattern would be great for knowing that the bigger picture might be going down, but to go short there at the break of the neckline and hold with your stop loss at the top would mean that you would be in a trade going against you for a really long time...long enough that you'd have been better off just going long when it went up and short when it came back down...using trendlines.
I might not be done with the micro ES. I might change my rules to try to get in at the ellipse areas (see post #52) when it's trending, not ranging around. I might still try the micro 6E too.
. Hey studentofthemarkets, It's an imperfect process to be sure, but looking at momentum extreme lows can point out some of those elipse areas that are good buying opportunities in a clear uptrend...
My preference is to enter with buy stop orders above the high when a bullish hammer candle or a "hammer-like" candle forms at such extremes during clear medium-term trends.
This chart is one he had asked about earlier that had a nice uptrend. From the start of the strong blue uptrend at around 9:30 there were 7 buy signals that would have produced 6 wins and 1 loss using the type of trailing SL that I like to employ. Loser was at about 10:25. Prefer to trade short-term swings on both daily and intraday charts.