SLAyers' Notes

[dbphoenix]

This is another that I traded today. Notice that most of the trades are in the upper half. Note also how price shoots out of it. It didn't amount to much though. By that time it was 1100.

 

[dbphoenix]

I should point out that I used to make a distinction between range and rectangle (see the Burrow). But when I wrote the SLA, I didn't want people to think "pattern" and start looking for rectangles everywhere, the way some people find head-and-shoulders everywhere they look. Technically, as long as price is within the range set by the opening high and the opening low, it's range-bound. But that doesn't make it a rectangle, nor does it make it tradeable at low-risk. Once price reverses at the high then reverses again at the low -- or vice versa -- rather than trend, I tend to back off. If nothing appealing shows up by 1100, I quit.

Db

 

[BarByBar]

1. I used to be anal about this, but as I developed a better appreciation for what support and resistance actually were, lines became less important, unless they were immediately-preceding range lines. And the difference between one contract and the next just wasn't that important either. As for volume, the SLA doesn't include it, so there's no need to concern oneself about it.

2. Get to know "Trading Opportunities", p. 60, "Please Sir", p. 103, and "What Am I Bid?", p. 125, to start. First you have to know where the TO is mostly likely to be, such as the upper or lower limit of the weekly trend channel. When price gets there, watch both daily and hourly charts simultaneously. When you switch from the daily to the hourly takes judgement, but I suggest letting the lines lead you as until they are broken, you risk getting caught in a game of Keep Away. Let The Money show its hand. If you can enter while everyone else is confused, you stand to do well. But the confusion works itself out fairly quickly, which is why price so often begins to drift around 1100.

You cannot know the "actual turn" in real time. If you're trading intraday and you're watching price move (if you're not watching price move, you have no business trading intraday), you can generally tell by the changes in activity and pace that something's afoot. You may often find springboards in tick charts. But you must also become very familiar with and comfortable with dogs (Appendix B). Note also that the first retracement is not always the cleanest. If you want a tight stop, the first RET may throw you out. Quite often it's the second RET that is the more capitulative.

This is all gurubabble, of course, without a specific example, which is what the book is all about. But the more examples, the better, so if you want to post something, feel free.

Db

I've read those sections in the past (though in the materials you emailed to me they are located on different pages: Trading Opportunities is p. 49; Please Sir is p. 87; What Am I Bid? is p. 125 - perhaps you've come out with a revised/expanded edition?). And I've read The Dog That Didn't Bark as well (Appendix B in my version as well).

I trade intraday only; trading chart is a 1023 tick chart; 1 hr chart is used throughout the day.

My questions really just went to the mechanic of the roll - there are different ways of doing it. I take it you do it much as I do; and to your thoughts regarding the quick entry/stop method for early entry versus waiting for the dust to clear.

Thanks again.
Ged

 

[dbphoenix]

and to your thoughts regarding the quick entry/stop method for early entry versus waiting for the dust to clear.

Thanks again.
Ged

It's not so much early entry as entering when the market tells me to, but to see that I need something much smaller than a thousand ticks.

Db

 

[BarByBar]

It's not so much early entry as entering when the market tells me to, but to see that I need something much smaller than a thousand ticks.

Db

Every tick is visible in a 1023 chart. I also have a one minute chart up. I've played with the 15 and 20 second type charts, but I don't find them greatly more useful. As long as I can see what price is doing on the right side of my bar, tick by tick, it works.

 

[dbphoenix]

Every tick is visible in a 1023 chart. I also have a one minute chart up. I've played with the 15 and 20 second type charts, but I don't find them greatly more useful. As long as I can see what price is doing on the right side of my bar, tick by tick, it works.

Every tick is visible in any kind of chart if one follows the hash mark up and down. But there is no record of its progress unless one drops to a lower interval. And time is important in re trading the SLA intraday.

For example, from yesterday:

 

[Gring0]

Price hasn't been very explosive after BO above horizontal TR (blue). First time price fell back into the TR and not it seems to be moving up in a diagonal TR.

Gringo

 

[dbphoenix]

Or one can revisit the roots of the SLA and plot a Wyckoff perspective:

 

[Gring0]

Or one can revisit the roots of the SLA and plot a Wyckoff perspective:

Much much better. Cleaner and less overwhelming. :clap:

Gringo

 

[dbphoenix]

Judge the market by its own action. If one opts out of a trade simply because of what he thinks might be resistance somewhere "up there", he won't be making many trades.

Support and resistance are continually dynamic. They are not found in software or indicators.

 

[Gring0]

NQ Daily DL breach

NQ Daily: DL breach.

Gringo

 

[dbphoenix]

With regard to a discussion that's going on in the other thread, and because the pdf doesn't address volume and the book does, I'm posting this here:

 

[dbphoenix]

For European traders, there was another trade earlier that day at 0930, London time. Given that activity is so much less at that hour, it's generally not necessary to drop below a 1m interval.

Note the heavy activity at 0430. The result, however, was null, and it was all over in seconds.

 

[Kleft]

PA snapped my LTF DL at the MP of the hourly range, then I noticed the overnight high to intraday low shared the the same MP, narrowing range = hinge. Maybe PA will play out as such.

 

[dbphoenix]

There are also, however, the SL from 4440 to 4365 and the following DL from 4365 to 4425 to consider. The opening drop today was a clean one.

Db

 

[Gring0]

This is what I see on the hourly. Open was clean though if one was watching. Daily's also at a location from where interesting turn of events could spring forth.

Gringo

 

[dbphoenix]

I thought today looked familiar (the right side chart):

http://www.trade2win.com/boards/trading-journals/209844-slayers-notes-62.html#post2723728

 

[dbphoenix]

Pre-market range from 4377.25 to 4384.

Failure to BO to the upside at 0935.

Failure to BO to the downside at 0937.

These failures result in LHs and HLs: a hinge.

Price BO to the downside at 0950. No short RETs.

Price REV and BO to the upside at 0957. Long RET at 0959. Buy.

One trade.

Db

 

[mckaldey]

One for the BO+RET binder...

 

[dbphoenix]

As Douglas would say, one need not have any idea what's going to happen next in order to make money. All one has to do is develop a consistently-profitable trading system and trade it. Price targets, risk:reward ratios, and winrates are irrelevant.

Db