Birth of a trader

[frank8800]

Once again, thank you very much for this great, detailed explanation on using multiple time frames!!! Like most things in life, it's so clear when methodically explained.

It's funny (not in a ha ha way) that the number of variables one needs to be aware of really isn't that great, and neither are the number of rules, however, synthesizing the information into an actionable plan in real-time is very challenging.

Quote from NoDoji:

That was a sweet little setup on the 1-min, wasn't it? I, too, waited for the "second mouse" entry, which was a no-brainer long entry to me after that 3rd touch of .77 held up, and I was long @ .85.

As for your hard target, I say "Hard stops, soft targets". First thing in the morning I note all the S/R levels off the 60-min chart and use those levels for profit target zones. Once price broke through 87.24 (Wed's 1:00pm ET bar high on the 60-min), then 87.47 and 87.95 were next in play.

I held for at least 87.47 and once that broke, it hardly paused at all before making another run. The way I chose to exit was I moved my stop to 87.45 after the run to .77, figuring that 87.47 previous R should hold as support. It looked so strong I thought it might try for 88.11. Price made another run at the high but started selling off before getting there. It was a clear LH on the 1-min chart and I exited at that point and took a counter-trend short off a break of the 87.55 level. The reason I liked that counter-trend short was the LH on the 1-min and the fact price had pulled so far from the 20-bar EMA, there was a very strong chance of a pullback to somewhere around 87.02 (9:45am ET pivot high).

 

[frank8800]

Quote from Handle123:

[B... and I was just waiting for that one at 9:00 as there was much less volume on the five minute ... [/B]

Another obvious clue I failed to catch in real time.

 

[NoDoji]

Quote from frank8800:

Once again, thank you very much for this great, detailed explanation on using multiple time frames!!! Like most things in life, it's so clear when methodically explained.

It's funny (not in a ha ha way) that the number of variables one needs to be aware of really isn't that great, and neither are the number of rules, however, synthesizing the information into an actionable plan in real-time is very challenging.

You definitely have to think fast, always a step ahead, so you're prepared to act, because CL just moves so fast once a level is triggered. The easiest thing to do is just have stop orders placed in advance. When I'm looking to enter at a break of a S/R level I just do it that way and then there's no worry about missing the entry. The more demanding thing is these "second mouse" entries I've been taking on pullback entries. There are certain parameters and price behavior I look for which require a lot of focus, then I have to be sure to act immediately or I miss the entry price. I know (intellectually) it's totally unnecessary to trade that way, but psychologically it makes it easier for me to trade all my setups. Whatever works, eh?

 

[ddlee]

NOD

That was a great trade on the wedge break at 11:02 eastern. Perfect example of waiting for the break up or down with some bracket orders (OCO) like you did. If I set my chart up so the last candle I see is the 11:01 on a one minute chart, I would bet on a pop up toward the figure. Even though there was news, this was a good trade to analysis for the lesson it teaches

 

[NoDoji]

Quote from ddlee:

NOD

That was a great trade on the wedge break at 11:02 eastern. Perfect example of waiting for the break up or down with some bracket orders (OCO) like you did. If I set my chart up so the last candle I see is the 11:01 on a one minute chart, I would bet on a pop up toward the figure. Even though there was news, this was a good trade to analysis for the lesson it teaches

Thanks, and to think it almost didn't happen. My buy stop was in place as I thought for sure we're breaking for the figure and beyond (I imagined those R levels getting swept right on through the 87.00's, having seen that kind of crazy full retrace in CL many times), and the sell stop was more of an afterthought when I reminded myself that the larger trend was still very much down and there was no reason not to just let price lead me out of the indecision at that point. The R:R downside was acceptable with the 5-min 20 EMA offering at least 20 ticks, maybe a little more. If my order wasn't in place, there'd have been no way to chase anything even close to that entry price.

:eek:

 

[frank8800]

Watched CL trade sideways for awhile, waiting for a break of a 85.81 or 85.13

Trade #1
Got a break of the resistance area, then a pullback to the EMA. The 5 min chart still looked whippy, so I waited for another push higher. The 06:40 candle was a big, 40 tick that shot up without stopping. Waited for a pullback on that and got a nice one, but was stopped out. -8 ticks.

Trade #2
This was a pure revenge trade. I was fixated on entering long, and completely ignored the fact that my last trade was embedded in a 5 min doji. I don't take trades from doji candles. The 1 minute chart formed a small ascending triangle with green candles. I waited the next candle broke the top, then fell back. I entered a buy stop above triangle. CL came up, grabbed me by the balls and pulled me down with a 1 tick slip. -9 ticks.

After seeing my trade, I was pretty disgusted with myself and was tempted to call it quits for the day. Instead, I took a few deep breaths, did some push-ups and stretches, and sat back down.

Trade #3
After the failed pullback long at 07:50, I was looking for a short entry. Went short on the 08:10 bar at 85.94 and managed the trade from the 1 min chart. This was a mistake, since I left some money on the table. +12 ticks.

I missed the short at 85.70 off the 09:05 bar because I was talking with a pesky client. To be honest, not sure if I would have taken it because of the support at 85.60 and the fact that CL was back trading in the early morning range.

Today I focused more on watching levels on the higher time frame (60 min). I was amazed to see the 09:00 candle stop to the tick of the previous candle's low, then turn around. That made me watch the eventual breakout of that level intensely, and a sell stop at 85.51 would have taken no heat at all and resulted in at lest a scratch. Similarly, the 85.13 60 min double bottom breakout was a 50 tick winner without any heat at all. Hmmmm.

Overall a mixed day. I'm happy with my first trade even though I was stopped out. My second trade was amazingly bad, but I'm pleased that I didn't give up and managed to pull a little money back. Still a red day, however.

 

[NoDoji]

Quote from frank8800:

The 06:40 candle was a big, 40 tick that shot up without stopping. Waited for a pullback on that and got a nice one, but was stopped out. -8 ticks.

There is no pullback entry signaled on my 5-min nor my 3-min chart. I do see the possible entry on the 1-min, and it made sense to stop out close on the failure, because then the 20 EMA on the 5-min was in play as an initial price target.

Quote from frank8800:

Today I focused more on watching levels on the higher time frame (60 min). I was amazed to see the 09:00 candle stop to the tick of the previous candle's low, then turn around. That made me watch the eventual breakout of that level intensely, and a sell stop at 85.51 would have taken no heat at all and resulted in at lest a scratch. Similarly, the 85.13 60 min double bottom breakout was a 50 tick winner without any heat at all. Hmmmm.

85.13/85.11/85.10 was a powerful floor, having been a key support level on 1/27, 2/11 and this morning. My biggest goal today was to be positioned for a breakout to 84.67 any time that level came into play. I was positioned very early, around 5:14 your time, but it held and I took 20 ticks; positioned a few minutes later, it held again, and I was out for a scratch and started trading to the long side.

Later I was positioned around 10:01 your time, it held and I took 20 ticks; positioned yet again at 11:10 your time and by then the buyers had finally left the building. 84.67 held to the tick at the first touch, but I got target after price broke it very shallow and came back up.

Patience and persistence is the name of the game.

 

[frank8800]

Quote from NoDoji:

There is no pullback entry signaled on my 5-min nor my 3-min chart. I do see the possible entry on the 1-min, and it made sense to stop out close on the failure, because then the 20 EMA on the 5-min was in play as an initial price target.

I meant after that 06:40 surge bar.
After that, price pulled back very nicely.

Quote from NoDoji:

Patience and persistence is the name of the game. [/B]

tryin'... Had to leave the office at 10:30 for a couple of hours. The best thing about this profession is that tomorrow is a new day and a fresh start!

 

[frank8800]

One trade in CL today. Out even (BE+1 with 1 tick slip).

 

[NoDoji]

Quote from frank8800:

One trade in CL today. Out even (BE+1 with 1 tick slip).

Frank, I highly recommend you follow the CL Redux thread closely each day. I provided, at no charge, the ultimate short signal today when at 10:02am ET I announced that I was leaving my my desk.