Day-Trading 2.0 for small traders
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From my point of view, you will never know that before, but an indication for coiling action or possible chop are conflicting swings, means Lower High and Higher Low, which happen mostly at stronger support and resistance areas.
The AHG thread is a good read on this.
The AHG thread is a good read on this.
I've read the AHG thread and i'm famlier with it concept the problem is that it won't save you from times where the market is making lower high lower low but still chopy also it won't tell when it has stopped from being chopy and the problem is that after a chopy time, most of times there is a very large movement that you'll miss if you don't know when to come back in, i'll try to post some charts later on
As far as I can see by viewing your charts, you scalp, like I try to do.
For that I believe - and in fact that's something I realized over the last weeks - a large move is nothing!
I mean, it's not necessary. You want to be right and take a few ticks here and there. And as jjrvat explained, if you zoom in there are hundreds of tradeable waves - even if it's choppy.
I know what they tell, you need a specific risk reward ratio and so on. My basic approach at the moment is different, I would place a 5 tick target and a 10 tick stop. If it's choppy and you don't like what you see, I train to force myself to get out.
Basically what I'm trying to do is to spot minor strength and weakness by analyzing price action. As we all know, it's all about opportunities and a plan how to play them. For me an opportunity could be the exhaustion of a trend move and to scalp out a few ticks.
I realized that the majority of time I think like a contrarian, don't know if this is good, it's maybe a dangerous path, but we'll see.
If you read the AHG thread you maybe read Piscuys post. I think they contain a lot of valuable information.
I would like to sum up my thoughts on price action with a typical after the fact chart interpretation. Nothing new, but something I'm working on at the moment. The time of the chart is GMT+1 so it's at the end of lunch time in a very narrow range - from an other perspective, this would simply look like chop.
Don't ask me about triggers or strategies in general, as mentioned, I'm practicing and for me, it's a process, this is my perspective and understanding at the moment.
<img src=http://250kb.de/u/080330/p/e993569a.png>
For that I believe - and in fact that's something I realized over the last weeks - a large move is nothing!
I mean, it's not necessary. You want to be right and take a few ticks here and there. And as jjrvat explained, if you zoom in there are hundreds of tradeable waves - even if it's choppy.
I know what they tell, you need a specific risk reward ratio and so on. My basic approach at the moment is different, I would place a 5 tick target and a 10 tick stop. If it's choppy and you don't like what you see, I train to force myself to get out.
Basically what I'm trying to do is to spot minor strength and weakness by analyzing price action. As we all know, it's all about opportunities and a plan how to play them. For me an opportunity could be the exhaustion of a trend move and to scalp out a few ticks.
I realized that the majority of time I think like a contrarian, don't know if this is good, it's maybe a dangerous path, but we'll see.
If you read the AHG thread you maybe read Piscuys post. I think they contain a lot of valuable information.
I would like to sum up my thoughts on price action with a typical after the fact chart interpretation. Nothing new, but something I'm working on at the moment. The time of the chart is GMT+1 so it's at the end of lunch time in a very narrow range - from an other perspective, this would simply look like chop.
Don't ask me about triggers or strategies in general, as mentioned, I'm practicing and for me, it's a process, this is my perspective and understanding at the moment.
<img src=http://250kb.de/u/080330/p/e993569a.png>
One thing I would like to add.
If I write 'watch resistance or support' then I mean that if the next move is maybe going up or down, you watch previous areas where price stalled or turned. You can be prepared even on fastest timeframes.
Maybe with the text I wrote before, this is a bit misunderstanding.
If I write 'watch resistance or support' then I mean that if the next move is maybe going up or down, you watch previous areas where price stalled or turned. You can be prepared even on fastest timeframes.
Maybe with the text I wrote before, this is a bit misunderstanding.
I am trying to put together a trading package for myself. I have been reading and reading and have experience trading the big s&p for a few years ago. I am going to get back into the emini now that I am retired and would like some opinions on Charting info and some of the brokerages and there comissions. Or is it just as easy to go with Tradestation for all?
I am going to use some of my indicators to scalp the emini and need to kepp costs down a little. I would appreciate any and all opinions.
Thanks.
MM
I am going to use some of my indicators to scalp the emini and need to kepp costs down a little. I would appreciate any and all opinions.
Thanks.
MM
You think that this whole approach is to discretionary (Timokrates)
No !!!
Price analysis is not discretionary. You trade or you base your trades in what you see even if you have a bad trade (thatâs the cost of doing business). Your trigger might be flexible, however the less discretionary is you trigger the best results youâll have not in necessarily in terms of money but in making your trading plan consistent, adaptable and sustainable in time.
In my opinion the only issues that can be discretionary in a PBP are those related to not placing a trade (overriding price analysis and staying aside) because specific circumstances that will affect price outside of its ânormalâ range: important news, opening or close of markets, etc.
what do you do to create a basic toolbox in regards to have the right perspective? Do you have 3 or 4 setups for a contract and the mood it is in - or even you? Timokrates
Despite the âtechnicalâ issues, there are other important issues in a trading plan. Are you trading 24/7?, do you trade for a living?, How many instruments you follow? Are you trading stocks, futures, forex, etc?
Those are questions that you and only you have to examine according to your trading plan. For now, Iâll continue with the Developing a price based trading plan (PBP) posts and I will try to open the discussion on multiple setups later. (â¦send me a PM if you want to discuss more specific issues related to your trading plan â¦)
In my opinion is better to focus in having a right perspective in one setup first because it can blur the essential issue on a trading plan: Priceâ¦. You may end up blaming timeframes instead of failures in price analysis.
"Execute the basics; master the basics,...When you master and execute the basics, the rest comes naturallyâ
hi jjvrat still waiting your aswers about how to avoid chopy times and about what to do when the slope change and we enter a trade and then immdielty change back.
thanks/ (amitman)
Why donât you post a chart so we can have a discussion based on a real example?. Did you check my previous posts http://www.elitetrader.com/vb/showthread.php?s=&threadid=113456&perpage=6&pagenumber=5
I do agree with timokrates, âyou will never know that before, but an indication for coiling action or possible chop are conflicting swings, means Lower High and Higher Low â¦.â Despite these âtechnicalâ explanations it seems to me that you are having problems with time (not timeframe). If your chart is directionless and making very fast, consecutive and random high lows (is that your case? Or maybe your timeframe and trading styles are not adequate for the time you are trading?) donât make it complicate. STAY ASIDE !!!. THIS is and will be the only 100% clear signal the market will give you ... DONT TRADE !!!..
...Don't ask me about triggers or strategies in general, as mentioned, I'm practicing and for me, it's a process, this is my perspective and understanding at the moment. Timokrates
Your chart is a perfect visual rendering of the essence in price analysis. You should save it for future reference, you may need it to regain perspective if you have a losing strike or even if you move on from a price based system and start trading indicators, it contains invaluable information on trading.
jjrvat
No !!!
Price analysis is not discretionary. You trade or you base your trades in what you see even if you have a bad trade (thatâs the cost of doing business). Your trigger might be flexible, however the less discretionary is you trigger the best results youâll have not in necessarily in terms of money but in making your trading plan consistent, adaptable and sustainable in time.
In my opinion the only issues that can be discretionary in a PBP are those related to not placing a trade (overriding price analysis and staying aside) because specific circumstances that will affect price outside of its ânormalâ range: important news, opening or close of markets, etc.
what do you do to create a basic toolbox in regards to have the right perspective? Do you have 3 or 4 setups for a contract and the mood it is in - or even you? Timokrates
Despite the âtechnicalâ issues, there are other important issues in a trading plan. Are you trading 24/7?, do you trade for a living?, How many instruments you follow? Are you trading stocks, futures, forex, etc?
Those are questions that you and only you have to examine according to your trading plan. For now, Iâll continue with the Developing a price based trading plan (PBP) posts and I will try to open the discussion on multiple setups later. (â¦send me a PM if you want to discuss more specific issues related to your trading plan â¦)
In my opinion is better to focus in having a right perspective in one setup first because it can blur the essential issue on a trading plan: Priceâ¦. You may end up blaming timeframes instead of failures in price analysis.
"Execute the basics; master the basics,...When you master and execute the basics, the rest comes naturallyâ
hi jjvrat still waiting your aswers about how to avoid chopy times and about what to do when the slope change and we enter a trade and then immdielty change back.
thanks/ (amitman)
Why donât you post a chart so we can have a discussion based on a real example?. Did you check my previous posts http://www.elitetrader.com/vb/showthread.php?s=&threadid=113456&perpage=6&pagenumber=5
I do agree with timokrates, âyou will never know that before, but an indication for coiling action or possible chop are conflicting swings, means Lower High and Higher Low â¦.â Despite these âtechnicalâ explanations it seems to me that you are having problems with time (not timeframe). If your chart is directionless and making very fast, consecutive and random high lows (is that your case? Or maybe your timeframe and trading styles are not adequate for the time you are trading?) donât make it complicate. STAY ASIDE !!!. THIS is and will be the only 100% clear signal the market will give you ... DONT TRADE !!!..
...Don't ask me about triggers or strategies in general, as mentioned, I'm practicing and for me, it's a process, this is my perspective and understanding at the moment. Timokrates
Your chart is a perfect visual rendering of the essence in price analysis. You should save it for future reference, you may need it to regain perspective if you have a losing strike or even if you move on from a price based system and start trading indicators, it contains invaluable information on trading.
jjrvat
I agree with you, that's what I'm working on at the moment. To find a trigger which is fast and consistent enough for my plan. There is maybe a compromise to make.
I plan to scalp on very low charts and have to say, that a lot of my trades I did lately were based on discretionary price analysis and anticipation of the signal.
Do you think that's a dangerous part? For example, I would take a trade after a sharp move, if I see that price stalls in an interesting area and would try to scalp a few ticks.
Do you believe that this is a bad approach in the long run?
I will try to post some more price action examples. Some patterns like hinges or springboards (Vic calls it 2B) are very interesting - even to get a few ticks.
Apart from finding a trigger and be consistent with this (which is maybe the easier way) my other problem is to make a compromise between taking all out or allow winners to run (scale out).
On the very low timeframes I trade, this is tough. I'm not at the point where I'm able to judge in milliseconds, which predefined strategy to take.
In general I believe that these are all further steps and I'm looking forward to master them.
I have to say that I like a discretionary scalping approach - even if all the books say that this is the way to the poorhouse.
Indicators I believe could be used to fix a trading plan and special rules. But for a kind of contrarian approach on a basis of seconds, they are to slow.
I plan to scalp on very low charts and have to say, that a lot of my trades I did lately were based on discretionary price analysis and anticipation of the signal.
Do you think that's a dangerous part? For example, I would take a trade after a sharp move, if I see that price stalls in an interesting area and would try to scalp a few ticks.
Do you believe that this is a bad approach in the long run?
I will try to post some more price action examples. Some patterns like hinges or springboards (Vic calls it 2B) are very interesting - even to get a few ticks.
Apart from finding a trigger and be consistent with this (which is maybe the easier way) my other problem is to make a compromise between taking all out or allow winners to run (scale out).
On the very low timeframes I trade, this is tough. I'm not at the point where I'm able to judge in milliseconds, which predefined strategy to take.
In general I believe that these are all further steps and I'm looking forward to master them.
I have to say that I like a discretionary scalping approach - even if all the books say that this is the way to the poorhouse.
Indicators I believe could be used to fix a trading plan and special rules. But for a kind of contrarian approach on a basis of seconds, they are to slow.
From my experience and what you can read on the forums, Ninjatrader is nice. It costs about $60 a month (depends). Zen Fire data feed is very popular and there are a lot of brokers offering this package.
I believe it depends on your approach. Interactive Brokers and Sierra Charts could be a nice combo as well. Specially Sierra is a good piece of software for a very good price.
Another option is the TT feed and Ninjatrader or X-Trader. Brokers like Velocity and Advantage offer this combo for example.
In regards to Tradestation you can read a lot about slippage and platform freezes lately, but I can't tell, because I've never been a customer.
Hope this helps
I believe it depends on your approach. Interactive Brokers and Sierra Charts could be a nice combo as well. Specially Sierra is a good piece of software for a very good price.
Another option is the TT feed and Ninjatrader or X-Trader. Brokers like Velocity and Advantage offer this combo for example.
In regards to Tradestation you can read a lot about slippage and platform freezes lately, but I can't tell, because I've never been a customer.
Hope this helps
"There was a guy posting here (TheRumpledOne) that saw this with or without realizing, what I called double waves. "
That would be me.
I wrote the "jjrvat" indicator for MT4 to tell me when the trade was "on". The indicator displays the trigger on 8 different time frames. I like making the computer do the work so I don't have to.
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