Recent content by trader_zone11

Yellen backed up the truck and made some money last night ;-)

Wow, someone took out those 5000 contracts in one swoop .... that was nuts.

Ok thx. Well, that's gonna be fun tomorrow. 5000 on the offer and 13 bid .... lol. Yikes.

Or maybe that's in honor of Prince :-)

Did circuit breakers kick in on the ES ? Stuck at 1999.

Ok I'm glad you guys reassured me ... I almost thought spoofing was a real thing. :-)

No, I mean "IS", and forever will be.

It's just a simple schematic chart. It's not meant to capture every possible pullback manifestation, of which there are many. My point was, when price makes a higher high, BAM !, it's a pullback !

Well, I didn't forget. I'm not claiming it's going to trend higher or go sideways. Just a narrow definition of a pullback as answer to the OP question at a certain point in time (at the higher high). If you define a pullback as having to go substantially higher than the previous high, I can...

Building on Stewie's work earlier in this thread, I think the answer to OP's question is fairly straightforward. Is it a reversal or a pullback ? If we define a pullback as a retracement in an up trend followed by a higher high, we simply have to wait for the higher high to determine the answer...

Video game makers know that random interval reinforcement makes the most addictive games. Like WoW. This same dynamic is at play in day trading. Random rewards. So yes, at it's core day trading is very addictive.

DJ, on reading the DOM, can you recommend any material/videos that give a good intro into that type of tape reading ?

Ok got it. I trade similar to you and currently just use pattern recognition to enter. Which at times is tricky, since a pullback is a pause in the action / counter trend move and by nature highly random/noisy. So maybe observing the DOM will add some edge.

Did you ever back test your trading setup when you developed it ? I am asking since you are using the DOM to time your entry and that might be difficult to back test.

As a thought experiment .... if chop is defined as pure random price action, then money cannot be made trading it. No strategy or risk management exists to extract money from pure random action.