AHG - Profitable Strategy for Struggling Traders

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One of the things I am still trying to "fine-line" is the bar-bar vs. wave-wave. If you traded ES today and stuck with the waves should have done very well. Likewise with each bar, but if I had traded just per that I would not have done as well as looking at the bigger pivot/wave picture. Maybe it just depends on one's style... maybe looking more for a scalp per bar and more of an intra-day swing in waves. Kind of confusing, but surely refined through experience. Any thoughts?

~Cx
 
Cx,

Ok here you go.

Several things that were VERY apparent.

- Very strong uptrend

- Several resistant levels in the big picture were taken out.

*We had bars closing above 1484-85
*We had bars closing above 1490

- There were plenty of double bottoms to take.

- Choppy action at some points but nothing remotely close to reversals. Lower highs is not bearish, lower highs and lower lows is. Most entries, if not all, did not have a subsequent lower low until the trend reversed, most I saw were double bottoms, support holding very well. This is imperative for running the winners, now and in future trending days.

- Significant TL break at the end with a pretty aggressive sell off. Just like Friday afternoon, nasty stuff.

Anek
 

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Cx,

Ok here you go.

Several things that were VERY apparent.

- Very strong uptrend

- Several resistant levels in the big picture were taken out.

*We had bars closing above 1484-85
*We had bars closing above 1490

- There were plenty of double bottoms to take.

- Choppy action at some points but nothing remotely close to reversals. Lower highs is not bearish, lower highs and lower lows is. Most entries, if not all, did not have a subsequent lower low until the trend reversed, most I saw were double bottoms, support holding very well. This is imperative for running the winners, now and in future trending days.

- Significant TL break at the end with a pretty aggressive sell off. Just like Friday afternoon, nasty stuff.

Anek
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I'm sure everyone else agrees with me but I wanted to post anyways - THANK YOU! It really helps me a lot when you post your charts and I can read your commentary on the day. I've learned a ton from reading through this thread over and over again. You do a great job at making everything so clear.

Thanks again...
 
Jack,

You are welcome.

Freewilly,

Good questions.

If you look back at how I enter double bottoms, I enter when the middle swing is taken out by a close above the high bar.

However, these double bottoms are not at the LOD so it's up to the trader to get a crazy good entry at the support level and risk a few ticks or wait for confirmation of the breakout.

On a Double B that appears a the LOD I would definitely wait for confirmation as the trend is very strong, if it's at the LOD, you definitely want the HH/HL as confirmation.

In todays' case, I would have definitely risked some ticks for a massive risk vs reward play, which is btw, the right mindset.

As far as jumping long into a strong trend with fears of buying the top, that's definitely more logical than shorting it. Nevertheless I see where you are coming from and I will show you a small trick, just don't tell anyone :D

Anek
 

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Quote from Anekdoten:

Cx,

Ok here you go.

Several things that were VERY apparent.

- Very strong uptrend

- Several resistant levels in the big picture were taken out.

*We had bars closing above 1484-85
*We had bars closing above 1490

- There were plenty of double bottoms to take.

- Choppy action at some points but nothing remotely close to reversals. Lower highs is not bearish, lower highs and lower lows is. Most entries, if not all, did not have a subsequent lower low until the trend reversed, most I saw were double bottoms, support holding very well. This is imperative for running the winners, now and in future trending days.

- Significant TL break at the end with a pretty aggressive sell off. Just like Friday afternoon, nasty stuff.

Anek
More...

Thanks Anek, I really appreciate your efforts. Oh and btw, I went long 5-6 bars prior to where you marked your 2nd 'Easy Entry' hehe :) :). Nice DB. Anyway thanks again and keep posting, your posts are what keep the journal lively and productive.

~Cx

P.S. Will you short on those initial trend line breaks or do you typically shy away from the first burst through and catch the first pullback out??
 
Quote from Cxinvest:


P.S. Will you short on those initial trend line breaks or do you typically shy away from the first burst through and catch the first pullback out??
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Not unless the last high before the TL break was a lower high. Today this was not the case on the immediate trendline.

Now, if you examine the MAIN trendline on my chart, that broke on a previous lower high and that's definitely a super valid short.

If this is not clear, check my previous chart, I drew two trendlines. One for the main trend and one for the explosion.

Anek
 
Hi, Anek,
Thanks for taking tiem to answer my questions.

1. What is LOD?
2. I don't see your entries. Usually you have green and red vertical bars that show your entries.
3. 2 dbl bottoms on your chart can also be looked as dbl tops. How do you handle that? For me, those areas only mean consolidation. They could break out either way, but once they breaks out, it signifies a trend(either down or up). Am I right?

4. Thank you very much for the tip. You use small time frame consolidation areas as pull backs, that makes sense. I can't get those fine resolution charts. (I don't eevn know what ES you guys are trading is)

freewilly
 
Quote from freewilly:

Hi, Anek,
Thanks for taking tiem to answer my questions.

1. What is LOD?
2. I don't see your entries. Usually you have green and red vertical bars that show your entries.
3. 2 dbl bottoms on your chart can also be looked as dbl tops. How do you handle that? For me, those areas only mean consolidation. They could break out either way, but once they breaks out, it signifies a trend(either down or up). Am I right?

4. Thank you very much for the tip. You use small time frame consolidation areas as pull backs, that makes sense. I can't get those fine resolution charts. (I don't eevn know what ES you guys are trading is)

freewilly
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1) Low of the Day
2) I barely traded today, family ambushed me.
3) Since the trend was up in order for you to take a double top as a short you need the swing low in between them to be taken out by a bar closing below that. That was not the case because a double bottom was formed instead. It's crucial that you see this, study it carefully.

4) That one is pure gold, it's called a Rectangle Channel.

Anek
 
Hi, Anek,
As for the pure gold. Do you mean by your experience rectangle usually means trend continuing other than reversal.

I am not really trading anything, but some paper trading. I study hundreds stock intraday charts everyday, trying to get a feel of market. It looks to me, rectangle only means consolidation. It can go either way, but once breaks out, it is a trend. Am I right? Do you set you entry in the rectangle or out of it(after break out)?

If I had traded the chart you provided, that's how I probably would have done it. Please comment if you have time.

Thanks,

freewilly
 

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