Discussion in 'Technical Analysis' started by Ditch, Dec 4, 2002.

  1. Ditch


    I tend to use those fib's as targets. worked well on the long one:)
    #11     Dec 4, 2002
  2. Yea, worked great as a target off that retracement at 16:25:)
    #12     Dec 4, 2002
  3. One way to trade it would have been on the break of 917.25 after it paused at 917.25, retraced to 918.25 on light volume and broke down again. You could take this with a tight stop at 918.50. (I would have preferred a stronger retrace back towards the high however).Of course, all this is in retrospect and it wasn't a trade I took but it did make me reconsider a long trade on a pullback to the 20ema on a 1 min chart, that I was setting up. Because of this action, I passed on what would have been a losing trade.
    #13     Dec 4, 2002
  4. Ok...I understand now.

    Yep...that was a Bearish V-Thrust Reversal top around 10:36am-10:39am est.

    If you saw it...why didn't you take it?

    Here's something I find odd when people say...

    "taking a trade in the opposite direction or fading"

    How is it taking a trade in the opposite direction if its a Reversal Signal?

    My point is this...taking a trade in the opposite direction means to me that a trader has taken a trade with no trade signal or a trader sees a strong parabolic trend and considers it to be the overall ruling trend and then takes a opposite trade.

    Simpy...if your trading methodology states that you only look for Lower Highs to setup something to bite on...you missed nothing.

    If your trading methodology states specific rules for Shorting V-Thrust tops and you ignored the trade setup when you saw it...you missed a trade.

    If your wondering if you should add V-Thrust Tops or Bottoms to your trading plan...

    I would say yes but be careful about trying to pick tops and bottoms in hopes of a potential V-Thrust Reversal pattern.

    Trading V-Thrusts usually require using multiple time intervals for confirmation. Therefore, I myself do trade them when I get a reversal signal.

    Also, they don't always occur at the day's high or the day's low to be consider a V-Thrust Reversal.

    Me personally...if I'm using the 1min chart...I'm looking for confirmation via the 3min chart.

    Yet, if you go higher than 5min chart...your trade entries will more often than not be chasing a V-Thrust Reversal signal.

    #14     Dec 4, 2002
  5. ddog


    why didn't you bite on the Higher Low that was put in soon after 16:27?
    #15     Dec 4, 2002
  6. ddog


    why didn't you bite on the Higher Low that was put in soon after 16:27?

    I am curious as to where you would have entered a long on this setup? I took it once it got above 1064 with a target of 1069.5 (the distance from the first high to the higher low).
    #16     Dec 4, 2002
  7. Yea, I like those setups, too. Good change of trend setup. But,
    I would have rather seen it rally a little more, too.
    #17     Dec 4, 2002
  8. ddog


    I see from your chart that you use a 133 tick chart. Is there any specific reason for this? I use a 200 myself. I have found it to be much more consistent for these reversals than a 1 or 2 minute chart, especially on slower days.
    #18     Dec 4, 2002
  9. Hi ddog,

    I don't trade via continuous TICK charts although I'm currently reviewing their usefulness when scalping.

    My comments was based on Ditch's posted continuous TICK chart.

    To answer your question based on Ditch's chart...I would have gone Long the white candlestick that closed above the Tweezer Bottom that was revealed in the pullback...soon after 16:27.

    On Ditch's chart...the first chart (no grid-lines)...looks like a Long signal at 1063.50 (hard to tell if its 1063 or 1064 via his posted chart without the grid-lines).

    Profit-target based on how I trade...would have been either via Ditch's next resistance line or via the NQ open price.

    #19     Dec 4, 2002
  10. No particular reason. I used to use 100T charts, but moved to 133.
    I also like 80T, and 210T. I think Ditch likes to use 89T. It's just
    a matter of personal preference.
    #20     Dec 4, 2002