Where am I going wrong?

[Crap Buddist]

.

 

[Hoggums]

.

Personally - based on price action - I fail to see how you could have identified point 6 as an entry point - at that moment it is quite plausible that the price was going to form another lower high and continue travelling southwards shortly after.

Only at when the previous high at 1370.5 was taken out could you have any confidence this wasn't another pullback.

Personally I would not have entered this trade until the price hit 1372 for the third time and a series of higher-highs,higher-lows was established.

Having said all that - I hate trading the 1 min bars - they are far too erractic and unpredictable for my tastes.

 

[dbphoenix]

db
I would suggest that after a break of TLine, you may be putting your stop in the 'wrong' place.

In this situation, the stop should be at the level of the TLine break, subject only to the possibility of a 'backtest'.

Then if you get hit, you know almost immediately that it was a false break and little damage is done.

Back when I thought that TLs were more important than they are, I would have agreed with you. But that's no longer the case. On the other hand, it isn't necessary that everyone agree.

As to the later comment by jacinto not to expect the "big moves" if trading with the 1m, the amount one captures has nothing to do with the bar interval. One can stay in all day with the 1m if he chooses to do so.

As to the weak hand, strong hand, smart money, dumb money thing, I don't see the point, paticularly if worrying about all of this interferes with and impedes the decision-making process.

Db

 

[Crap Buddist]

Hoggums,
yeah i can see your point, all depends on how we each read whats happend, the low 4 was tested for a whopping 3 minutes and was rejected, in the sense that the close ,didnt below it. If we dare to imagine a few stop orders have been triggered on the thrust down to 4 on Globex. and its not trading lower, then ?

Those sneaky gits have done it again.

That widow entry although higher than the passive and pro areas marked, I see as Another low risk entry (although a tad late for my liking) , if you wasnt already in, more risk ? well not really ,its closed above the fuss line ,just like the pro 6 did after testing low 4. And because its closed back above the fuss line, what should happen is the price should be expected to trade higher, because the area below it has been rejected?

Pro 6, team to capture fuss line and advance, you can think about that when passive agressive is happening, in advance.

 

[dbphoenix]

If we dare to imagine a few stop orders have been triggered on the thrust down to 4 on Globex. and its not trading lower, then ?

Those sneaky gits have done it again.

What I call The Dog That Didn't Bark . . .

 

[Crap Buddist]

What I call The Dog That Didn't Bark . . .

Thats a polite way of putting it

 

[dbphoenix]

Thats a polite way of putting it

From The Hound of the Baskervilles . . .

 

[rainman2]

As to the weak hand, strong hand, smart money, dumb money thing, I don't see the point, paticularly if worrying about all of this interferes with and impedes the decision-making process.

Db

How can real knowledge impede on the decision making process?

are you therefore saying that " ignorance is bliss " as it pertains to trading?

 

[new_trader]

The only feedback I have is "well done".

glad to see in the second chart that you had the patience to wait for the 'real' lower high before entering.

The most important concept to get across is that you must not feel "ownership" of your decision to enter a trade. You are playing a game of numerics only. So dont let a profit turn into a loss because you think you are right and the market is wrong.
Always ALWAYS aim to take some money off the table .

Thanks Doublesix. I take what you say on board.

 

[new_trader]

you could also consider that 90%+ of amateurs lose, give up now, and find something more profitable to do

Are you implying I should do the same? I have put too much time and effort into this to simply just walk away now. I feel I have come a long way since I started on this endeavour. To be honest, I would find it impossible to give up now because it would feel like unfinished business. To quote Edison (I think)- "I haven't failed, I have found 10,000 ways it can't be done"

I will find more if need be.

 

[new_trader]

This is academic because I didn't place a trade, however it is interesting to note that the set-up looked similar to the 1st trade on this thread. I would have traded at 1 previously but now my motto is "It pays to wait"

It's easy to say it in hindsight, but I would have found it irresistable to go long somewhere around 3.

 

[Crap Buddist]

Yeah, I think what can happen is we can be very enthusiastic to trade . So perhaps the waiting, or going from agressive, to passive agressive or Pro, labels that i just tag to it , can help with reading and working out the game plan.

Sounds like you'll be doing the 3 step

1,2,3

1,2,3

Why not ,lets dance around our house 1,2,3 1,2,3 "what ya doing honey?" "Trading" 1,2,3 1,2,3

 

[chump]

Time is a killer ....one of the hardest things people have to master is doing nothing with it ..it's unnatural ..try sitting at a table and just looking across it at your partner doing nothing but looking...I'll give it about two mins until someone speaks ,or has to leave the table etc...
Now take that person and put them in front of a screen looking for something inparticular but otherwise doing nothing...LOL..what do you think the temptation will be ?

This is a good argument for not being in front of the screen unless you need to be..set alerts if possible....trade multiple instruments rather than one is another strategem....
Darvas went backwards when he placed himself 'closer' to the market activity than his trading needed...you need look no further than the above info to understand why ...Livermore went through a similar process..
Now we might have added New Trader ,but he might be wise enough to avoid that ?

"1 2 3" was a hit for Gene Barry ...because it was as "easy as can be"

 

[Splitlink]

Yeah, I think what can happen is we can be very enthusiastic to trade . So perhaps the waiting, or going from agressive, to passive agressive or Pro, labels that i just tag to it , can help with reading and working out the game plan.

Sounds like you'll be doing the 3 step

1,2,3

1,2,3

Why not ,lets dance around our house 1,2,3 1,2,3 "what ya doing honey?" "Trading" 1,2,3 1,2,3

The 1,2,3 has been very good to me although it has its failings. What I see at the "3", here, is that, perhaps, an added indicator showing overbought/oversold points might be useful. This "3" low may show oversold on an indicator, as well as being higher than the prevous low. The indicator is, therefore showing a change of trend-- Sorry, POSSIBLE change of trend--- nothing being certain in this world

As db has mentioned, the build up of volume at the left and the absence of it now, is hitting me in the eye. No one seems to have mentioned that, except him, sorry if I've missed anyone else. I'm not a volume man, myself, but there it is.

Split

 

[Crap Buddist]

The 1,2,3 has been very good to me although it has its failings. What I see at the "3", here, is that, perhaps, an added indicator showing overbought/oversold points might be useful. This "3" low may show oversold on an indicator, as well as being higher than the prevous low. The indicator is, therefore showing a change of trend-- Sorry, POSSIBLE change of trend--- nothing being certain in this world

As db has mentioned, the build up of volume at the left and the absence of it now, is hitting me in the eye. No one seems to have mentioned that, except him, sorry if I've missed anyone else. I'm not a volume man, myself, but there it is.

Split

Yeah with the volume, new trader is taking on the Globex session, so volumes as can or rather cannot been seen , is practically non existent, relative to the open session. You dont need volume, you could trade just on the bars.


with the 1,2,3 i see it as

1 o.k.
2 o.k
3 o.k

rather than any judgement of price waves. now what overbought or over sold indicator is required to tell you that ? isn't the price showing you whats happend ,happening .most probable to happen.

Price is indicating , reading these indications of the price, its then of use as its own predictor .

And when you look at the debate for using other indicators, you can begin to perhaps see why some would say, they detract you from price itself and what that is indicating.

 

[Splitlink]

Yeah with the volume, new trader is taking on the Globex session, so volumes as can or rather cannot been seen , is practically non existent, relative to the open session. You dont need volume, you could trade just on the bars.


with the 1,2,3 i see it as

1 o.k.
2 o.k
3 o.k

rather than any judgement of price waves. now what overbought or over sold indicator is required to tell you that ? isn't the price showing you whats happend ,happening .most probable to happen.

Price is indicating , reading these indications of the price, its then of use as its own predictor .

And when you look at the debate for using other indicators, you can begin to perhaps see why some would say, they detract you from price itself and what that is indicating.

Yes, you are right. I've dropped a clanger because I didn't look at the times. I only use volume indicators, not the price indicators, so you are right on that point, too.

Split

 

[Crap Buddist]

Time is a killer ....one of the hardest things people have to master is doing nothing with it ..it's unnatural ..try sitting at a table and just looking across it at your partner doing nothing but looking...I'll give it about two mins until someone speaks ,or has to leave the table etc...
Now take that person and put them in front of a screen looking for something inparticular but otherwise doing nothing...LOL..what do you think the temptation will be ?

This is a good argument for not being in front of the screen unless you need to be..set alerts if possible....trade multiple instruments rather than one is another strategem....
Darvas went backwards when he placed himself 'closer' to the market activity than his trading needed...you need look no further than the above info to understand why ...Livermore went through a similar process..
Now we might have added New Trader ,but he might be wise enough to avoid that ?

"1 2 3" was a hit for Gene Barry ...because it was as "easy as can be"

hmmm, you can see or perhaps we all know friends or family members who are just not comfortable with doing nothing.

One comment I cant get my head round is "I'm Bored" i seriously cannot remember ever feeling bored.

im bored, this is boring, im bored ****less, whats the answer to this or whats the cause ?

 

[Mornington Crescent]

new trader
one thing that hasnt perhaps been mentioned but which you might like to consider is your "set-up".
In your original chart, you went long around 1371.

But you have also said that you want to know what is going on rather than just taking advice.

One "pattern" which you will find frequently in your charts,is that after a sharp run (up or down), the market tends to consolidate.
One way of explaining this is to suggest that in this case, sellers hold fire to see if much buying power will come in to counter a strong move. If not, they will resume selling.
At the low, sellers are exhausted and patient buyers reverse the market and as you put it the market "sky rockets" as the buyers force the price up AND short sellers have to close quickly adding fuel to the fire.

So, personally I would not have gone long at 1371.75 but waited for the end of the consolidation and then gone short. The lower high around 1374+ would have been my trigger .

 

[The Baptist]

Can anyone explain what happened? (See Attached Image Below) I have made a number of trades where the market retraces enough to take out my STOP and then REVERSES to profitable levels. Are my stops too tight?

Leave Intraday Trading and start to position trade with the primary move. Better still make continuation patterns and breakouts your primary set up within these major moves.

 

[vergis92]

Can you expand on the significance of different time frames please? I don't want to make any assumptions.

Thanks

using the right time frames are very important, I personally mostly use daily charts
because all my analysis on the markets I trade involves counting days, looking at the close
and a very strong 'day of the week' factor , If I look at 60min or 3 day or weekly charts
it becomes meaningless,

In trading stock indices such as SP500 I can tell you these facts:

1) There's absolutely no way of knowing where the real support, resistance comes in,
using software packages, only a handful of floor traders know , so if you are not
in touch with the floor you can forget about it,
most books try to teach you that support / resistance pivots can simply be calculated
using a previous low or high, it works well for scalping on a quite day or for the
highly analytical swing trader , for everything else it will fail you,

2)it's big mistake to place stops just below yesterdays low, just because an important low
is breached is not a sell signal yet, what happens is that, that day becomes pivotal,
the next day(s) people will be looking to buy pivotal high or sell pivotal low breach and the market will move in momentum, once again floor traders see things we don't,
they can even tell who bought on X day to push the Dow up 100 points and who bought
it on day Y to push the Dow again up 100 points often making a clear distinction
on the rally that was closed to resistance and the the one that was way below it,
these two days appear identical on a charting package, if you are off the floor
you don't know it until it's happened, sure you can predict market direction
but wihtout real support resistance pivots you won't catch much of the moves,