This is ET...Home of the World's Elite...traders. We all hangout here while we watch and follow the market, Making thousands every business trading day. and eating steak sandwhiches, put some sauce on dat thang, A documentary movie should be made about all of us. Showing the intense drama on our faces and bodies and money flowing around us everyday. Show some people high-fiving other people, or the air, or their dog....while some people throw their laptops and computers against the wall.
ROFLMAO Institutions care less about 5 minute charts but whatever they do shows up there. ...ad nauseum. Its all there. They can’t hide except maybe the HFT’s. You must have lost you cowboy hat on the 30 point (or so) drop on the 5 minute chart today? Lol
When price is in a range why do some people buy at the top? Because they don't think like the 2nd mouse!!
Hello propwarrior, Just wanted to share my experience this week trading. So this week, I put aside my buy/sell with the intraday trend trading method and decided to 1. Identify a small range with a resistance and support. 2. Buy support with limit order and sell resistance with limit order. Results 7 wins for about $800 1 Loss of $240. It was pretty weird going against the trend of the moment and felt uncomfortable, felt like I was all alone shorting a resistance. Lol but it worked. Felt weird contentrend trading. I see how this plays out over time.
Look at any range. On any TF. BO Attempts FAIL 70% to 80% of the time. I define any ATTEMPT for a BO by longs as price tracking up into the top 1/4 of the range then failing and for SHORT BO failure attempts as price tracking down into the bottom 1/4 and then the attempted BO failing. Actual Bo’s from on either side of the range also fail quite often and price just goes back into the range. So on actual BO’s I like to see some confirmation ...say...a Pb that stays out of the range, then price resumes. This usually gives another leg or two of price action in the direction of the resumption thus causing the pb to just be a bull flag (when on the long side) and a bear flag when on the short side. However...IF i see a strong bull pressure building in the range (i am not talking about a strong bull bar as often price races to the top on a big bull bar then immediately reverses towards the bottom of the range ..so I am taking about another kind of bull pressure) THEN i might enter long early within the range anticipating a probable successful bull BO when prices gets to the top of the range. Thus giving me an early entry. But more often than not that is not the case. Turn that around for early entries on shorts. Finally PA spends more time in ranges and channels (channels are nothing but tilted ranges!) than in spikes or BO’s so if a trader desires to trade all day during the session it may behoove that trader to learn how to trade ranges. Regardless, of how it FEELS!
Thank you volpri for the response. You have helped me. Because I spent alot of time trying to trade does BO on small timeframes during the daily session. They make money, but it's rare they happen and like you said they don't happen that often and lots of fake outs. From my one week of practicing trading a range, that I define on the chart, I was able to get many trades during one session for some statical significance. I will keep on trading these ranges when I see them and get some practice. Regarding the bull flags, today I bought the support of one, exit at top of flags for a profit. Then, I put a buy stop order above bull flag resistance by a few ticks. Atleast if price wants to continue , I get a fill in the direction of the trend of the moment. Doing this , gave me 2 wins between. 10 -15 ticks of profit. I tell you, this is better then trying to get intraday swings and BO.
Glad to be of some help. When you look at the odds favor shorting near top of a range and going long near the bottom. I mean like 70% to 80% of BO’s will fail! That is good odds for fading. So fading the BO’s is a viable strategy. Of course, sooner or later a BO will succeed and if one happens to be in a fading position when it does succeed then one has to exit and look at going in the opposite direction of the fade. Another technique that can be profitable in BROAD ranges. One can consider averaging into a losing position. I call it scaling into a losing position. Why do this? Well, If a trader got in too early say long in the lower 1/3 of a range and it heads south the odds favor a bounce off the bottom of the range and even if it breaks thru the bottom and becomes a BO ...WELL remember most BO’s fail. So, if the trader has been adding to his losing position the odds favor he will soon be back at a profit. Test it out on a LIVE SIM. Any scaling in must carry a limit on the max loss one will allow before exiting because when the technique does fail, losses can get big if not controlled.
I love it man, this is my style of trading! People think I am crazy but I hold to the theory that if I gain some ground ....then lock it in! When price retraces i can always get back in..many times cheaper than my previous exit (thus compounding my money) and just take the same position again. I do not mind paying an extra comm. brokers gotta live too. I will take any trend and trade it over and over exiting and entering multiple times as it trends up or down as opposed to swinging it for larger trends. Too many traders see a 2 point profit in the ES and they will not take it. Waiting for that 8 point ride. Before they can grab a candy bar that 2 point profit disappeared and now they are suddeningly looking at a 2 point loss and the candy bar is melting in their hand as the loss can be substantial if one is trading 10 or 20 lots. “A piece of bacon in the frying pan is better than a pig running wild in the bush.” Coined by ME. ES has alot of “mean” reversion. Pun intended.