Waiting for the BEST trade

Discussion in 'Trading' started by tradersaavy, Mar 9, 2003.

  1. Waiting for the BEST trade is an opinion that seems to be a very common insight from those who seem to have ben "at it" for some time trading as a suggestion to newbies and just a matter of fact for veterans. I myself am somewhat of a newbie and do understand the meaning of patience. Not that I practice it fully yet but do understand its impact. Also, I believe waiting for the "best trades with most potential" is subjective. Would love to hear feedback on YOUR best trade scenario or posting charts with detail on entry at targets and conditions would be even better. I'll start. Now, being a newbie my best scenario is not yet proven from the standpoint of me actually trading it successfully over time. However, hindsight tells me to"wait for these". They are: looking for reversals intraday on a 5m time frame where larger timeframes are hitting resistance/support. Also, looking for breakouts to new day highs/lows on a 5m chart where the previous days highs/lows are being taken out as well.
  2. I took a look at your chart...

    where's your price entry and price exit?

    Also, what exactly do you mean your looking for breakouts...is there more to that trade setup your talking about...such as specific rules?

    In addition...there's lots of threads with the info you seek about traders sharing their best or favorite trade setup:

    Try looking in the Journal Threads


    Technical Analysis Threads


    Lots of traders posting their best trade setups with criteria and charts.

    Also...there are some threads with traders posting their best or favorite trade setups...criteria and charts...but some of them are now closed.


    First of all, these are tough trading times for many traders...the change in ET character...reflects such...as expected.

    Traders that do reveal what they use...regardless if its something they've designed or copy from something that's well known (like a Stochastic Divergence trade setup)...

    they get attacked about their trade setup...often leads into personal attacks and many more crap...to conclude into one thing...

    thread gets way off topic...thread gets closed.

    Simply, if this thread you started can persuade another trader to post something that consistently works for him/her (including the specific rules and charts) in this difficult trading environment...

    be prepare to see the bashers show up...usually the same group of posters.

    Remember this...if someone is losing money in this markets...there's a very good chance that someone is making money in this market :cool:

  3. dbphoenix


    Here's one from Friday.

    1. Price breaks the uptrendline.

    2. Price retraces to the last reaction low (3).

    A short can be placed under any of the bars in that little congestion zone.

    Two other options:

    4. Shorting the 2B (not a great 2B)

    5. Shorting the failure to make a new high (one could short any of the bars in this retracement).

  4. prox


    The best trade is to buy at support, sell at resistance with a confluence of divergence in my favor.

    Therefore, for you to get stopped out.. you'd have to have a divergence and a support level both broken. Which puts the percentages vastly in your favor.

    Even better, would be a confluence of a important fibonacci targets, pattern targets, and longer term resistance areas.

    Basically you want in a trade where everybody's system will be flashing in the same direction.
  5. I am very interested in what you describe here. I have always traded just on patterns but am finding it hard to have large winners over some small losers. I would think that buying/selling right at support/resistance would create a great risk-to-reward ratio. What would be the ultimate example of one of these trades ? Long term supp/res, divergence (what indicator), with a specific candle ? And, what would you say is the most common combination of these confluences ? Do you have a chart or two that you could post for these examples ? Thanks.
  6. prox


    Personally, I rely on simple floor trader pivot levels to trade the ES. So, if we've broken pivot to the downside -- pivot would be resistance, S1 would be support. Now, would would be nice would be a downward move where it will bounce and S1 will hold on the retest. Even better would be a divergence long on this retest and even better than that, a very similar pattern on the NQ.

    A confluence would be a longer term important support level or trendline, that might be exactly at S1, or perhaps a 50% fib retrace on a longer term chart move that also point to a potential bounce. I don't pay that much attention to fib levels all that much, but if there is one, it would certainly increase odds of success.

    My favorite patterns would be the NQ and ES working completely in sync.. each bouncing off S1 with a divergence long at the same time. Basically 100% win trade there.

    There will be times where the NQ and ES will not move similarly. The NQ might be holding tough above S1, whereas the ES had already broken below S1 and is trying to fall to S2. Since they both feed off each other, the ES is trying to drag down the NQ .. the NQ is trying to hold up the ES. This will simply result in chop until one side breaks through and they both agree on a direction. I would just sit on my hands until I get a better setup.

    Here's one chart example that may illustrate some of it. Notice the last two trades of last long of the day, and then a divergence short as it hit R1. The day ended, but that would have also been an ideal short setup. Also during that midday chop is where I got the prior chop example. The NQ was holding above the R1 , whereas the ES was clearly weaker and trying to break R1. We chopped around for hours until about 2 pm where the NQ finally broke on a divergence short allowing the ES to move lower.