Awash's Journal

Quote from VisionTrader:

I don't understand your second trade?? Did you decide to enter when the sto turned down on the 3M pullback? Why didn't you enter on the divergence in the DT?
More...

VisionTrader,

I've been waiting for you to reply. We trade similiar setups. As to the DT, I'm incredibly slow entering the market. I've been having trouble with my entries lately and I'm in the process of solving my problems.

As to the trade, I wanted to see if price would continue to move down. I should have been short at 996 but got filled at 995.50. Once I solve my problem I'll take the diveregence on a DT like that easily. Give me a good two weeks. Keep in touch!
 
Wish I could...but out of respect to him and the other traders in his crew that trade the same way. I really can't talk too much about it.

I don't understand why I can't (cause even if I told you what software we use, you'd still have to learn to program it)...but that is what I was told.
 
Quote from stockfrosty:

Wish I could...but out of respect to him and the other traders in his crew that trade the same way. I really can't talk too much about it.

I don't understand why I can't (cause even if I told you what software we use, you'd still have to learn to program it)...but that is what I was told.
More...

I didn't realize you were talking about a system (software). Thought it was something else.

It's good that you are a man of principles.
 
Quote from Awash:



VisionTrader,

I've been waiting for you to reply. We trade similiar setups. As to the DT, I'm incredibly slow entering the market. I've been having trouble with my entries lately and I'm in the process of solving my problems.

As to the trade, I wanted to see if price would continue to move down. I should have been short at 996 but got filled at 995.50. Once I solve my problem I'll take the diveregence on a DT like that easily. Give me a good two weeks. Keep in touch!
More...

Sorry about that. I am not good at my PM's. They went away or something.

FOR ENTRIES ONLY

This may sound a little strange and it will definitely cause your heart to flutter a little.....

try setting up a tick chart using your same divergence system. When I was on steroids, I used to use 34 tick chart. Multiple DT's and DB's of course. Once you learn how it works (valium suggested) look for timing on the DB's and DT's on your 3M chart. Just a thought. I had to stop. Cardiologist got mad.

If 34 is too fast, use 55 or 89.

Good luck.
 
Good use of entry stop Awash. As for your 1st trade of the day, I actually thought you would have gotten in on the short earlier than that (probably around 994.00 or 993.75).

The entry of the 2nd trade looked like it was better timed. You later mentioned in your reply to VisionTrader that you should have been short at 996. I think that at 996, it might have been a bit premature to initiate a short. My reasoning is that at 996, the market just came off from an intra-day high of 997.75 and was making what might be a retest of that high. Moreover, if you drew a local up-trend line of the climb that took place from 14:00 EST to 14:24 EST, 996.00 was still above that trend line, and could be heading higher. It’s not until price falls to 995.50 does the up-trend line become breached and the probability of market heading lower become increased as a result of the double-top formation off of 997.75. Anyway, that’s my 2 cents.

Kermit
 
Quote from VisionTrader:



...

FOR ENTRIES ONLY

This may sound a little strange and it will definitely cause your heart to flutter a little.....

try setting up a tick chart using your same divergence system. When I was on steroids, I used to use 34 tick chart. Multiple DT's and DB's of course. Once you learn how it works (valium suggested) look for timing on the DB's and DT's on your 3M chart. Just a thought. I had to stop. Cardiologist got mad.

If 34 is too fast, use 55 or 89.

Good luck.
More...
VisionTrader,

Interesting you should mention the use of tick charts. I think they actually give much clearer, more information-rich price movements/patterns. If I may ask, why would you recommend it “FOR ENTRIES ONLY”?

Kermit
 
awash,

the KISS method is best....today was a 1/4 to 1/2 scale all day..there were 4 good trades today even @ that...with the system you MUST create....Your indicator won't get you there...% anything won't either...I truly hope you succeed...thousands of hours of patiently studying the hundreds of charts u must save to create your system will get you there with confidence...If it came easy, 95 + % wouldn't lose more than they win...You should not need over 2 or 3 recurring entry signals...Simple Moving Averages do work.....When you discover the combinations/Parameters...Best Wishes... When you do, you won't give yours away either, or sell it.....How will you succeed when 97% can't and they have programmers, fortunes, so-called best systems money can buy??? It public input worked, you would have it made...the more input you get, the worse you will trade... I'm talking because I'm bored and love the business.. No offense intended...
 
I wanted to get you alls input on pre-market signals (divergence for my system) and how you may react. Prior to major ES trading, my %D was showing divergence (See chart). Do you consider pre-market signals before major trading starts or do you generally try and wait for signals after major trading?

I generally wait but I wanted to get a feel for what other divergence traders do. In hindsight, if I had of went short on the DT at 9:48 I would have taken more profit home because the signal was clear. Let me know at your convenience.
 

Attachments

I don't think of myself as a "divergence trader". But I went short the market (SPY) with allot of conviction due to the confluence of several factors.

1) the market gapped up (and when it does this I typicaly look to fade the move but first I need some more signs that I'm correct in the form of:

2) the gap up was inside yesterdays range (If gap up/downs occur within yesterdays levels then the chances of the gap closing that day are much better, this by the way is a fact, I've done my stats using an exel spread sheet with daily data going back 7 years)

3) volume at the open didn't justify the size of the markup

and (this is one of my favorite signals)

4) the market rallied off the open just enough to pierce yesterdays high and trigger the stops above that level. When I see the stops go over on the tape and then the market retrace hard and fast....I have good confirmation that the traders in the pit have used those buy tops to go short (you'll see this in every market over and over again) and that now is the time to go short with them.

which thankfully...this time I did.

I doubled up when the low established in the first few minutes of trading was breached.

My only problem today was that I should have trailed the second half of my position rather than taking profits...I've really got to work on riding my winners.

Great moves in the market today..both up and down.
 
But to answer your question specifically Awash, I like to take my signals form action that takes place after the open...and here is why...

We as traders are trying to gauge demand and supply because that is what moves price. Now I really don't think you can accurately gauge buyers and sellers until they are all playing. Which the majority of them aren't before the open....

So if you want an accurate read on the real demand/supply equation I think it makes sence to wait unitl after the open to start looking for clues.
 
You must log in or register to reply here.
Back
Top