One thing I have painfully learned is not to be a salmon. Do not try to swim upstream. Go with the flow. Today was clearly a day where the only way to make money was to wait for pullbacks and go long. Saw many people beating their head against the wall trying to scratch out a short , when the easier course was to wait for a decline and ride the tide back up.
Awash's Journal
- Thread starter Awash
- Start date
Awash, I haven't read your entire journal...just your last post, but I would recommend you chart the TRIN. This should help you go with the flow....it certainly helps me.
-FastTrader
-FastTrader
I traded off of the 1m chart for a long time trading reversals with divergence.
I got killed because I was going against larger timeframe trend.
Then I realized that I could find small timeframe divergence reversals that were actually WITH larger time frame trend and my trading has improved since then. There aren't as many trades, but quality beats quantity in this case. Of course patience is another story.
For example, a 15m chart that is in an uptrend and has a pullback to support could be viewed on a 1m chart as a downtrend that reverses as the 15m pullback to support continues its trend.
I got killed because I was going against larger timeframe trend.
Then I realized that I could find small timeframe divergence reversals that were actually WITH larger time frame trend and my trading has improved since then. There aren't as many trades, but quality beats quantity in this case. Of course patience is another story.
For example, a 15m chart that is in an uptrend and has a pullback to support could be viewed on a 1m chart as a downtrend that reverses as the 15m pullback to support continues its trend.
top_playa
You can get these numbers at my website Mon - Thu:
http://home.houston.rr.com/aarondwashington/
I use the basic formula for calculating s/r levels via excel, coupled with pre-market & previous day price activity.
Today I made a few mental errors and missed some opportunities early on but I just wanted to stick with the game plan. I wanted to focus on placing trades with the trend and approach divergence reversal setups with strict caution, although today I completely avoided them to save face.
Trade#1 â [Short 1020.25 10:20 EST & Cover 1020.00 10:56 EST] [ P/L: + 0.25 ] Bad trade, too early of an entry without confirmation. Price actually reversed back down to 1019.00 ten minutes later but I wanted 2 points. I didnât cover this position because of a lot of negative pressure (this time it worked in my favor). Next time it wonât be pretty!
Trade#2 â [Short 1021.50 10:44 EST & Cover 1020.00 11:15 EST] [ P/L: + 1.5 ] This was a bad trade because I didnât wait for confirmation on either chart. I just went short knowing price wasnât going to pullback to 1025. Ten minutes later my signals confirmed downside movement. Next time it wonât be pretty! Iâll definitely need to wait for confirmation.
Trade#3 â [Short 1022.25 11:21 EST & Cover 1020.75 11:42 EST] [ P/L: + 1.5 ] Got confirmation on my 1-minute chart and it was confirmed eight minutes later on my 3-min. I wasnât looking for much on this trade, only a small target. Covered once profit was reached.
For tomorrow:
Adhere to the game plan of following my system with the utmost discipline. Always wait for confirmation; today it wasnât to my detriment but tomorrow it may.
Trade#1 â [Short 1020.25 10:20 EST & Cover 1020.00 10:56 EST] [ P/L: + 0.25 ] Bad trade, too early of an entry without confirmation. Price actually reversed back down to 1019.00 ten minutes later but I wanted 2 points. I didnât cover this position because of a lot of negative pressure (this time it worked in my favor). Next time it wonât be pretty!
Trade#2 â [Short 1021.50 10:44 EST & Cover 1020.00 11:15 EST] [ P/L: + 1.5 ] This was a bad trade because I didnât wait for confirmation on either chart. I just went short knowing price wasnât going to pullback to 1025. Ten minutes later my signals confirmed downside movement. Next time it wonât be pretty! Iâll definitely need to wait for confirmation.
Trade#3 â [Short 1022.25 11:21 EST & Cover 1020.75 11:42 EST] [ P/L: + 1.5 ] Got confirmation on my 1-minute chart and it was confirmed eight minutes later on my 3-min. I wasnât looking for much on this trade, only a small target. Covered once profit was reached.
For tomorrow:
Adhere to the game plan of following my system with the utmost discipline. Always wait for confirmation; today it wasnât to my detriment but tomorrow it may.
Today I had a lot of different mood swings while in my trades; greed & fear. I learned something from another trader about adjusting my profit target order per current market conditions based upon intraday s/r levels. I'm generally all over the board when it comes to profit targets but now I know to be flexible.
Trade#1 â [Short 1022.75 12:26 EST & Cover 1022.50 12:48 EST] [ P/L: + 0.25 ] Some resistance was near 1023 but this trade didnât follow through because of low volume. Covered my position due to lack of movement.
Trade#2 â [Short 1024.00 13:39 EST & Cover 1023.00 14:06 EST] [ P/L: + 1 ] Divergence signal on 1-minute chart for entry and decided to exit based on a poor attempt to break 1023.
Trade#3 â [Short 1024.50 14:17 EST & Cover 1024.00 14:38 EST] [ P/L: + .50 ] Reliable resistance around the 1024.50 area but this time my profit target was 3 points. Too much! Iâll be flexible next time watching s/r levels closely. Cover this trade for a small profit.
Trade#4 â [Short 1027.50 15:16 EST & Cover 1027.50 15:38 EST] [ P/L: 0 ] This trade was nerve wrecking. I took a divergence signal after a strong move up and I wasnât too cautious because I didnât wait for a confirmation on my 3-minute chart. 15 minutes later price pushed up to 1028.50 and I just wanted out of the trade. I ignored everything else and wanted to breakeven on this one. At the same time a divergence signal was confirmed on my 3-minute but after last week I didnât want to hold the position any longer. Trades like this are hard to assess after strong moves but I think Iâll have more success if I wait for confirmation on my 3 minute only. For now on Iâll rely on my 1-minute as a precursor to what will happen on my 3-min and will take signals from the 3-min only after strong moves.
For tomorrow:
Adhere to the game plan of following my system with the utmost discipline and always wait for confirmation.
Trade#1 â [Short 1022.75 12:26 EST & Cover 1022.50 12:48 EST] [ P/L: + 0.25 ] Some resistance was near 1023 but this trade didnât follow through because of low volume. Covered my position due to lack of movement.
Trade#2 â [Short 1024.00 13:39 EST & Cover 1023.00 14:06 EST] [ P/L: + 1 ] Divergence signal on 1-minute chart for entry and decided to exit based on a poor attempt to break 1023.
Trade#3 â [Short 1024.50 14:17 EST & Cover 1024.00 14:38 EST] [ P/L: + .50 ] Reliable resistance around the 1024.50 area but this time my profit target was 3 points. Too much! Iâll be flexible next time watching s/r levels closely. Cover this trade for a small profit.
Trade#4 â [Short 1027.50 15:16 EST & Cover 1027.50 15:38 EST] [ P/L: 0 ] This trade was nerve wrecking. I took a divergence signal after a strong move up and I wasnât too cautious because I didnât wait for a confirmation on my 3-minute chart. 15 minutes later price pushed up to 1028.50 and I just wanted out of the trade. I ignored everything else and wanted to breakeven on this one. At the same time a divergence signal was confirmed on my 3-minute but after last week I didnât want to hold the position any longer. Trades like this are hard to assess after strong moves but I think Iâll have more success if I wait for confirmation on my 3 minute only. For now on Iâll rely on my 1-minute as a precursor to what will happen on my 3-min and will take signals from the 3-min only after strong moves.
For tomorrow:
Adhere to the game plan of following my system with the utmost discipline and always wait for confirmation.
I stuck to the system today and Iâm happy. Iâm also excited that I didnât try to take any reversal signals during that massive downtrend mid-morning. I completely avoided it, however in hindsight I should have been shorting considerably because all of my support levels broke.
Trade#1 â [Short 1026.50 9:53 EST & Cover 1024.75 9:57 EST] [ P/L: + 1.75 ] Good downside movement early on and price turned off my resistance level 1026.50. Covered position around my pivot. I wanted a good start to boost my confidence!
Trade#2 â [Long 1022.75 10:21 EST & Exit 1023.50 10:40 EST] [ P/L: + .75 ] Massive divergence was brewing on my 1-min and I took the trade considering it wasnât coming off such a strong move. Covered quickly because it didnât have much upside potential.
For tomorrow:
Continue to adhere to the game plan of following my system with the utmost discipline and always wait for confirmation. Also, avoid being hesitant and execute trades with a clear head
Trade#1 â [Short 1026.50 9:53 EST & Cover 1024.75 9:57 EST] [ P/L: + 1.75 ] Good downside movement early on and price turned off my resistance level 1026.50. Covered position around my pivot. I wanted a good start to boost my confidence!
Trade#2 â [Long 1022.75 10:21 EST & Exit 1023.50 10:40 EST] [ P/L: + .75 ] Massive divergence was brewing on my 1-min and I took the trade considering it wasnât coming off such a strong move. Covered quickly because it didnât have much upside potential.
For tomorrow:
Continue to adhere to the game plan of following my system with the utmost discipline and always wait for confirmation. Also, avoid being hesitant and execute trades with a clear head
