When trading the trend....

Discussion in 'Psychology' started by redwagon, Aug 6, 2006.

  1. Doesn't that just kinda tell whether the price break out or not (no longer overlapping)? If I see price breakout strongly ADX will go up after the fact... but it doesn't really provide new information??
    :confused:
     
    #11     Aug 8, 2006
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    RedW;

    It depends on several things;
    take liquid markets like SPY, ES.
    5 cents is usually just noise in SPY, unless its in a sloppy sideways trend,non printable noise for sure in ES, minimum tick=00.25

    So while dont like to give up a profit in intraday trading;
    =======================================
    5 cents is noise ,not a trend. 00.25 is noise in ES, but actually took that number earlier this week, cause dont want a profit turned into a loss & looked like it wasnt going to hit target:p

    A scalper may use that nickle target , my scalps are usually failed trend moves .LOL

    On ES enter a profit target in IB traders workstation for a certain number of points like today;
    & may RE-enter ,later.a smaller or larger target depending .........

    Or may exit for a predertermined loss like earlier this week in ES

    Experience , moving averages, more years the better to id a trend/friend;
    PSAR [parabolic stop & reverse]helps, not used in a mechanical way, but as a principal , of SNUGGING stops as time gets closer to end of day,flat in ES.

    Wisdom is profitable to direct:cool:
     
    #12     Aug 8, 2006
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    Helpful points;
    and another way to identify a good trend in liquid markets like ES,SPY, the better trends dont pull back much- long or short.

    Dont consider a sloppy trend to be a good one even if it ends up making a good move;
    lots ,lots,lots of study of average ranges, of hourly candles....,
    can also help in letting resason over rule emotions.

    Kick it out if its not working right; ,or starts getting sloppy, especially late in day , if the plan calls for daytrading.
    Plenty of opportunities in liquid markets:cool:
     
    #13     Aug 8, 2006