1. Dang it not again.
2. NICE.
3. Wish I could just take that trade someday.
4. That trade never works, I went long.
5. Thank you to whoever went long.
6. Good grief batman that was just to easy.
7. YAWN
8. I would have taken it, but the CCI on the 29 minutes chart (trying to front run the 30 minute people) was a HFE and the CCI on the 13 minute chart (trying to front run the 15m people) was a HFE also. SO, I didn't go short because it looked like a 3 minute ghost or vegas trade was setting up, not sure which one that was but since neither didn't work I guess it's a moot point. GREAT TRADING EVERYONE ELSE....:(
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4 comments:
Dennis,
For the first bar of the day trade your entry rule is: When the high of the setup bar is taken out without taking out the low of the setup bar, go long. If the low of the setup bar is taken out without taking out the high of the setup bar, go short.
Do you wait for the takeout bar to close before entering? Otherwise it's not possible to know that the other side won't also be taken out by further action of the takeout bar.
Maybe that's where experience makes the difference ?
Phil,
Let's say the first bar is an up bar like this morning (high=647.9 low=646.9)
Let's say the next bar take out the high and you are long at 648.0 - allow for some slippeage...)
unfortunatly the next bar closes below the open at 647.7 and looks like a reversal bar.
You are now 3 ticks in the red at best. What do you do? Do you panic and get out or do you stay in?
It all depends on where you placed you stop. Do you place your stop 1 or 2 tick below the first 3 min bar (usually 10 ticks and more)? If stop is too large do you attempt to look in a smaller time frame and watch price action.
For example this morning when i got long at 648.1 and the next bar printed like a reversal, i watched the 70 tick chart and noticed that price did not close under the 8 wma. and i moved my stop right under the low of the bar sitting on the 8 wma at 647.4.
Market was good to me and it went right back up to 650.5. I closed my trade when the 70 tick chart showed me that price were closing under the 8wma at 649.9.
Now if the third bar had taken the low of the range, i would have been stopped AND i would not have taken the short on the break out of the low as per Dennis' rules.
You cant foresee whats going to happen. But you can decide what you are going to do and the rules are crysto-clear:
When the high of the setup bar is taken out without taking out the low of the setup bar, go long. If the low of the setup bar is taken out without taking out the high of the setup bar, go short.
I suppose you could wait for the bar to close but then again your potential reward would be reduced.
In trading like in everything the biggest reward comes when the context is the most unconfortable.
It is a trade off you ll have to decide for yourself.
Hope this helps,
Regards,
Chris
Well, I might use a minute timer and if it's getting near the end of the second 3 minutes I might just front run the close of the bar......but of course, that is not playing by the rules.
I have been trading that for a very long time...and if you keep a log will be able to find a spot were you also could take the setup before the close of the second bar.
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