amit1986
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No worries! Just focus on your other methodologies and setups until you get access to Time and Sales. 
amit1986
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So how are you handling your stops? I am familiar with momentum trading and know that in an ideal trade the price will continue to rise after your entry. Do you stay in if price starts to move against you? If so, are you basing these stops on ATR, last candle, fixed price? I am interested because I also trade based on momentum but am still working on the entry side of the equation. Thanks
amit1986
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Hi ezreddy,
There's really no simple answer to your question regarding stop losses. Most of the time, if there's no viable areas of support/resistance, I place an emergency mental stop 10 cents before my entry (for long positions) or 10 cents after my entry (for short positions). However, these are what they are - emergency stops. Much like what Mr Charts says on his thread, why wait for your emergency stop to get hit? As you know, in momentum trades, you'll know fairly quickly if your trade has worked out. Therefore, if the price action reverses/goes against me, I close out of most of my positions. However, in some cases, price action may still go against me but Time and Sales is still strongly in my favor. In those cases, I stay in the trade with the 10 cent mental stop.
Once the stock goes approximately 10 cents in my favor, then I move my mental stop to 1 cent plus the entry (for long positions) or 1 cent minus the entry (for short positions) so if the trade turns around and goes against me, then I at least break even. After the EMA(10) goes past my stop, then I trail my stop using that EMA(10).
Obviously, if there are other areas of support/resistance, then I use those as stops. Consider the following example: A stock breaks at $36.50 and I get an entry at $36.55. The stock continues to go up several cents and I now place my mental stop at $36.56. If there are two or more candles that set the same low of $36.67, then I would move my stop to $36.66 because support at $36.67 is broken.
So basically, it's about identifying areas of support/resistance.
Hope this helps,
Amit
There's really no simple answer to your question regarding stop losses. Most of the time, if there's no viable areas of support/resistance, I place an emergency mental stop 10 cents before my entry (for long positions) or 10 cents after my entry (for short positions). However, these are what they are - emergency stops. Much like what Mr Charts says on his thread, why wait for your emergency stop to get hit? As you know, in momentum trades, you'll know fairly quickly if your trade has worked out. Therefore, if the price action reverses/goes against me, I close out of most of my positions. However, in some cases, price action may still go against me but Time and Sales is still strongly in my favor. In those cases, I stay in the trade with the 10 cent mental stop.
Once the stock goes approximately 10 cents in my favor, then I move my mental stop to 1 cent plus the entry (for long positions) or 1 cent minus the entry (for short positions) so if the trade turns around and goes against me, then I at least break even. After the EMA(10) goes past my stop, then I trail my stop using that EMA(10).
Obviously, if there are other areas of support/resistance, then I use those as stops. Consider the following example: A stock breaks at $36.50 and I get an entry at $36.55. The stock continues to go up several cents and I now place my mental stop at $36.56. If there are two or more candles that set the same low of $36.67, then I would move my stop to $36.66 because support at $36.67 is broken.
So basically, it's about identifying areas of support/resistance.
Hope this helps,
Amit
amit1986
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Watching ABB with a view of taking a long. Strong volume spike at the break of the previous days low. Price is consolidating around this area. What previously was resistance has now become support. NYSE E-mini futures hovering around the days high.
ABB High of day: 19.48
Target Entry price: 19.50 if Time and Sales confirms momentum.
ABB High of day: 19.48
Target Entry price: 19.50 if Time and Sales confirms momentum.
amit1986
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Although ABB did break out and went up to 19.54, Time and Sales did not confirm an entry. Price is now at 19.49. Still watching ABB as it could still break out. NYSE e-Mini futures facing strong resistance at the 105500 area. A break of this area for the futures will be a good signal for entry in ABB.
ABB price is now at 19.48. Just shows you how important Time and Sales is in reading the order flow and keeping you out of trades that don't display enough momentum.
ABB price is now at 19.48. Just shows you how important Time and Sales is in reading the order flow and keeping you out of trades that don't display enough momentum.
Mr. Charts
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amit,
I didn't like ABB personally at all due to strong resistance at 19.53 (everyone is different) so didn't alert my members to it but I saw momentum and snatched a 5c scalp out of it exiting at 19.52.
Perhaps we see momo in different ways
Good trading to you.
Richard
I didn't like ABB personally at all due to strong resistance at 19.53 (everyone is different) so didn't alert my members to it but I saw momentum and snatched a 5c scalp out of it exiting at 19.52.
Perhaps we see momo in different ways
Good trading to you.
Richard
Mr. Charts
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PS Thanks for mentioning ABB
Very nice trade HGSI
Very nice trade HGSI
amit1986
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Hi Mr. Charts,
I did see strong buying pressure on the Time and Sales on ABB around the 19.48 - 19.49 area, however, I made the decision to enter the trade upon the break of the 105500 price level of the NYSE E-mini futures as well. I guess, in a way, I was not planning to scalp ABB, but was looking to hold it for a while, so that is why I did not take the entry. Momentum was strong around your entry point, however, it died around your exit. As momentum died around your exit, futures also turned around. The only difference is you were able to quickly take advantage of it, while I didn't. :clap:
NYSE E-Mini futures on their way back up now. I'm sure you have it on your watch list, but check out XOM, it might present a good move as the futures break that area.
Amit
I did see strong buying pressure on the Time and Sales on ABB around the 19.48 - 19.49 area, however, I made the decision to enter the trade upon the break of the 105500 price level of the NYSE E-mini futures as well. I guess, in a way, I was not planning to scalp ABB, but was looking to hold it for a while, so that is why I did not take the entry. Momentum was strong around your entry point, however, it died around your exit. As momentum died around your exit, futures also turned around. The only difference is you were able to quickly take advantage of it, while I didn't. :clap:
NYSE E-Mini futures on their way back up now. I'm sure you have it on your watch list, but check out XOM, it might present a good move as the futures break that area.
Amit
Mr. Charts
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Yes, and you watch LNC
Best wishes,
Richard
Best wishes,
Richard
Mr. Charts
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You're very welcomeThank you for that
No entry for me yet. Futures have broken 105500.
I took a 17c bite out of LNC.
Someone has sent me an email basically calling me a liar about trading ABB and saying I'm raining on your parade.
In case anybody else thinks that I'm showing a screen shot of my broker window as a one off as I really don't have to prove anything to anybody, but maybe he has a point about this being your journal and so I won't post here again. Sorry.
Good trading to you, amit.
Best wishes,
Richard
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amit1986
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Mr. Joyson,
Congrats on the LNC trade. I can probably figure out where you took your entry and exited. I guess I was too slow to enter. But hey, your experience speaks for itself.
As for the email you received, please do ignore that type of rubbish. I completely believe your trades and you are NOT "raining on my parade". In fact, I very much welcome your comments, suggestions and opinion on my journal. So please do continue to post here when you feel like and ignore others who say stuff like that.
Amit
Congrats on the LNC trade. I can probably figure out where you took your entry and exited. I guess I was too slow to enter. But hey, your experience speaks for itself.
As for the email you received, please do ignore that type of rubbish. I completely believe your trades and you are NOT "raining on my parade". In fact, I very much welcome your comments, suggestions and opinion on my journal. So please do continue to post here when you feel like and ignore others who say stuff like that.
Amit
oildaytrader
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Amit
I must compliment you on posting your trades before they happen.Keep it up
O D T
I must compliment you on posting your trades before they happen.Keep it up
O D T
Mr. Charts
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Thanks for your kind words, Amit,
Richard
Richard
