A simple price action approach

I used this method (the one described by the OP in his first post) this morning. Usually I use the Value Area High and Value Area Low, and Point of Control, S1, R1, and horizontal trend lines for my trading parameters. It hasn't worked out too well. So I tried the technique that is being discussed here. I traded the ES this morning Feb-7th. As you know there was a significant downward action in the morning. I had my TL drawn. And when it fell out of the bottom TL, I waited for it to close back inside the the bottom TL using a 5 minute chart, and took a long. But I am a weak hand, and could not wait it out, and bailed once I started feeling some pain. But I think I have the general idea of how to do it, right?
One thing that I struggled with was whether to use the after hours trend lines, or the regular trading hours trend lines. Eventually I went with the RTH trend lines. Do you have a preference? I am still working my way through the thread so if this has already been asked before, my apology.
 
Here is an even simpler algorithm:
Buy if price has closed down 7 days in a row and is above the 100 day MA. (vice versa for shorts.)

Now there is nothing magical about the numbers 7 and 100, but the concecpt is the same. The MA defines the trend, and the down closes define "temporary" weakness. And no, I have not back tested with out-of-sample data and money management stops to see if it has positive expectancy.
 
Quote from shots fired:

I read this very closely, and seriously cannot make sense of it. Perhaps subsequent posts by this author, or others, will help me understand it better. Here's what I did understand: The price on the 5 minute chart failed to reach the upper TL so this was a signal that most likely the pattern was going to break to the downside soon. But I did not understand what he was saying about the 1 minute chart and confirmation. [/B]
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I didn't realize at the time of my post the complexity of how I trade. There are much simpler ways to trade technical price action than what I do. Some of what I do is really simple, stuff straight out of a trading book (1-2-3 patterns off key levels such as trend lines or 20EMAs). The chart you reference shows a fairly complex intraday scalping method I derived from observing cornix trade 6E with a 6-tick stop. I say "derived" because he probably doesn't trade the way I do, but the method I came up with was the result of my interpretation of what I imagined he was doing based on his live trade calls.

I'm an intraday scalper and I sculpted a personal version of precision technical price action scalping. Because I honed my own particular methods based on broader concepts found in trading books, it all seems perfectly simple to me, because it's what I know inside and out.

I will distill the essence of that chart and post:

I prefer to be the second mouse who waits for extra confirmation but is more likely to get the cheese. The risk is that I miss a move, but as my friend Robert Weinstein told me many times when I was a newb, "It's OK. Another boat will come along."
 
I remember this thread and how promising these methods seemed to me at first. So, has anyone used any of these methods to day trade successfully?

I went through my old channel daytrades and tried to add a big picture context, tried to come up with specific rules on how to draw channels, recorded all the MFE/MAE data for every trade and tried to find the best profit targets and stops, etc. Never was able find anything to convince me that I could be profitable over time daytrading like this. Sure, there were profitable weeks, and even profitable months, but long-term consistency was not there.

Am wondering if anyone else has used these methods to become profitable.
 
Quote from NoDoji:

I didn't realize at the time of my post the complexity of how I trade. There are much simpler ways to trade technical price action than what I do. Some of what I do is really simple, stuff straight out of a trading book (1-2-3 patterns off key levels such as trend lines or 20EMAs). The chart you reference shows a fairly complex intraday scalping method I derived from observing cornix trade 6E with a 6-tick stop. I say "derived" because he probably doesn't trade the way I do, but the method I came up with was the result of my interpretation of what I imagined he was doing based on his live trade calls.

I'm an intraday scalper and I sculpted a personal version of precision technical price action scalping. Because I honed my own particular methods based on broader concepts found in trading books, it all seems perfectly simple to me, because it's what I know inside and out.

I will distill the essence of that chart and post:

I prefer to be the second mouse who waits for extra confirmation but is more likely to get the cheese. The risk is that I miss a move, but as my friend Robert Weinstein told me many times when I was a newb, "It's OK. Another boat will come along."
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I read your post again today (the early post that referenced your chart), and I was able to figure out what you were saying. The first time I read it, I struggled to figure out what you were saying.
I think it was more your writing style than anything else. But I went through it slowly tonight and studied it, and figured out your writing style, and I think I am pretty clear on it now. I really liked that post. It was good stuff. This whole thread is good. This is the kind of things that have been craving.
 
Quote from NoDoji:

I didn't realize at the time of my post the complexity of how I trade. There are much simpler ways to trade technical price action than what I do. Some of what I do is really simple, stuff straight out of a trading book (1-2-3 patterns off key levels such as trend lines or 20EMAs). The chart you reference shows a fairly complex intraday scalping method I derived from observing cornix trade 6E with a 6-tick stop. I say "derived" because he probably doesn't trade the way I do, but the method I came up with was the result of my interpretation of what I imagined he was doing based on his live trade calls.
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Must say that your imagination gave you a pretty good picture of what I did back then. :)

Indeed it was 1-min fine-tuned entry in the context of 5-min PA.
 
Quote from NoDoji:


I prefer to be the second mouse who waits for extra confirmation but is more likely to get the cheese. The risk is that I miss a move, but as my friend Robert Weinstein told me many times when I was a newb, "It's OK. Another boat will come along."
More...

Yea, second mouse entries are no doubts safer than the 1st mouse. I like them a lot, but take the 1st mouse too when PA favors it, because provided R:R is good it's worth to risk the small loss in exchange for a large gain potential sometimes.
 
At what point do you discard a channel and redraw?

I know there's no right or wrong answer but am interested in a discussion on this.

For intraday I was discarding after the third cross of one of it's boundaries. Meaning price can break out of a channel, can break back into it (failed breakout), and break back out of it again (failed failed bo) but after that I would not use it any more.

I'm no longer day trading, but I still draw my best guess at a channel on the 10min NQ chart every morning before 9:30 market open and then later on get to see how price reacted to it during the day. Amazing how profitable this can be at times, and how unprofitable it can be at others. I don't understand it. Lately it's been in one of it's profitable phases so it has me thinking about this again.

Anyone who is profitable using channels please contribute, even if your success has nothing to do with this thread.
 
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