Thanks and good conversation Here is an example of range I was looking at today and traded. You can see me in short trade at the top of the range. The purple is the resistance zone and orange is the support. I wait til a range is somewhat clearly defined. I wait til top of resistance is tested in the zone, if it does not breakout, I short it. One question is how do you decide your profit targets? I use OCO bracket orders and I have just been using R:R =1 to get in and out. Or I identify some minor support within the range to get out. One thing I am considering is using 2 contracts, and exit 1 contract at R:R = 1 or some minor support, and let the other contract run and just management. For example, for the short the example. I will exit 1 contract at that profit target and manage the other contract for bigger profits. So for this case, if I get stop out. Good, atleast I know price is going in opposite direction, and I just fade the BO. The challenging part is identifying the range. But that is just practice.
Thanks volpri. good points lol, I have been here with ES many many times trying to trade one contract looking for the big 10 points days and I am seeing PnL with +$200 or 4 points. Trading 2 contracts, I can exit for the small points, breakeven and let the other contract run and just manage the trade. This is when I realize trading 1 contract is very hard.
I read the other day that the stock market has made 75 new highs since Trump was elected so what is wrong with jumping on board a good growing stock to ride for the future. As high as this market is now it may still run for 2 or 3 more years. If you want a position, getting in at the exact most opportune time is very difficult.
And as your friendly stockbroker might say, "This could be your last chance to buy at these prices!!"
How did price play out in this example? See below, blue line marks where the old chart finished. Bear in mind one swallow does not make a summer.