Day-Trading 2.0 for small traders

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Quote from jjrvat:

Third, Why did you choose a 300 vol chart? This is a fast chart and I wont recommend it for beginners?
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I was looking at the volume on a 1min chart and 300 seemed to be a good "middle value" to pick. (except in the mornings when there are 1-2,000 volume per minute) What volume would you recommend for YM?

300 volume seemed to produce obvious "waves."

4th, A 6 zero lag EMA for wave analysis and entries, why? based on what?
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It seemed to produce good waves. It matches almost identically the 6WMA you mentioned in another post (i have them both plotted on the chart in my example)

5th, Assuming that your 6 ZL EMA is giving you clear waves, the entry was at 13007 (change or slope or close above both at this point) not at 13009
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You're right, my mistake.

6th, I have never post anything specific about stops in this thread (not yet) the only reference was that if you have wave analysis at least you will now where are your limit for entries and what is the max limit for stops (1 tick below the last wave low). You are misinterpreting the 1 tick below the last low as a rule for stops.
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I have taken the following notes from this thread about stops (ignoring the "1 tick below" rule you said I was misinterpreting):

- close position when stop is hit OR a new wave forms against you (perhaps the fast MA changing color/slope)

- price closes below the Fast MA (assuming you're long); a "Natural exit."

Maybe I'm misinterpreting those, too.

7th, In any case the last wave low is not at 12962 but is at 12996 'cause if you took that trade is because you already knew a new last low was made. So it was only 11 points down (which is pretty healthy for that level of noise and the average true range in that chart). Plus that trade had 1 tick drawdown with a max profit range 15 ticks in 5 minutes that will be more than enough for a “few ticks profit on the scalp”.
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So you use 1 tick below the current low as the stop loss point. I must have misinterpreted that as well from another pic that was posted I think. After reading your reply it makes sense to me now.

8th, I don’t know your background but if you are new in the business don’t even dream that you can make consistently 1 trade like this every day if you don’t work hard, have strong discipline and elaborate your own consistent and sustainable trading plan.
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That's what I'm working on now. My background has been limited to 3 years of investing/swing trading.

9th, I don’t get annoyed answering question or discussing trading issues, however if you want my opinion or you have any questions related to this thread in the future I will recommend to put more effort before you post a comment on something you just skim.
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I'm not "skimming." I've read this thread numerous times and even have another document that I'm taking "notes" in. But an any rate, I'll try to ask better questions from now on.

Thanks, tho. I appreciate your help.
 
Quote from jjrvat:

I have never post anything specific about stops in this thread (not yet)
jjrvat
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jjrvat,

Since "stops" are the heart of risk management and therefore consistently profitable trading, I will read any of your thoughts regarding "stops" with interest.

regards
f9
 
PBP method followers trading the YM/NQ probably had a fantastic day today.

As for myself, I developed bad habits in trying to pick bottoms
and tops. I studied so many different methods that I need to get rid of garbage, and just stick to price action. I was not able to
put a single trade on as I watched in disbelief as NQ grinded lower all day.

Listening to traders pit audio didn't help either. Caller kept talking about a big local buying. Price kept going lower. Should have just watched the chart and trend.

Back to reading this thread from page 1, and just stick to what makes sense. Follow the larger trend, and ride the wave.
 
Quote from greddy:

PBP method followers trading the YM/NQ probably had a fantastic day today.

As for myself, I developed bad habits in trying to pick bottoms
and tops. I studied so many different methods that I need to get rid of garbage, and just stick to price action. I was not able to
put a single trade on as I watched in disbelief as NQ grinded lower all day.

Listening to traders pit audio didn't help either. Caller kept talking about a big local buying. Price kept going lower. Should have just watched the chart and trend.

Back to reading this thread from page 1, and just stick to what makes sense. Follow the larger trend, and ride the wave.
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Actually the last two days had been absolutely amazing for both NQ/ES traders. Yesterday traded the ES, a winner after winner to the long side and today all winners, to the short side, didn't have even one losing trade. I'll post a chart later of today trades. You really can't ask for more
 
Hi all,
as I promised a chart of my trades today. Traded the SPY since I had problems with my futures data vendor.
The chart below is a 0.1 range bar chart I use for wave analysis. Enteries and stops are based on 1 min chart with Haikin Ashi display (which is, very recommanded, BTW, for better visualization of price action). Exits are fixed, first exit at 11C, second exit is 20C or B/E whatever comes first.

Few things to notice on the chart:
1) Most trades are pure wave analysis exept trade 3 and 4 which are reversals that are based on Volatility Stop (the Black and White straight lines).
2) I usually ignore the slower WMA in the first hour or so, of trading since the gaps in the spy pretty much corrupt it in the first hours of the day. In this time I use pure wave analysis.
3) I don't enter twice in the same wave, but if I entered and exited and the wave hadn't started yet I will enter again (see trades 6&7 and 9&10)
4) For your convinience I've numbered the trades on the chart.

That's it, I had a great day. The only trade I feel sorry about is 11 where a spike stopped my on B/E on the second half and then the SPY immdietly collepsed and made almost 1$ from my entry point in just a few minutes.
Trade results:
1,2,3,4,5,8,10,13: Full winners (11C and 20C).
6,7,9,11,12: Half winners (11C and B/E).
 

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Amitman,

Thanks for posting your trades. How are you defining a wave? Are you defining it based on price moving above and below the 240 wma?

Floyd

Quote from amitman:

Hi all,
as I promised a chart of my trades today. Traded the SPY since I had problems with my futures data vendor.
The chart below is a 0.1 range bar chart I use for wave analysis. Enteries and stops are based on 1 min chart with Haikin Ashi display (which is, very recommanded, BTW, for better visualization of price action). Exits are fixed, first exit at 11C, second exit is 20C or B/E whatever comes first.

Few things to notice on the chart:
1) Most trades are pure wave analysis exept trade 3 and 4 which are reversals that are based on Volatility Stop (the Black and White straight lines).
2) I usually ignore the slower WMA in the first hour or so, of trading since the gaps in the spy pretty much corrupt it in the first hours of the day. In this time I use pure wave analysis.
3) I don't enter twice in the same wave, but if I entered and exited and the wave hadn't started yet I will enter again (see trades 6&7 and 9&10)
4) For your convinience I've numbered the trades on the chart.

That's it, I had a great day. The only trade I feel sorry about is 11 where a spike stopped my on B/E on the second half and then the SPY immdietly collepsed and made almost 1$ from my entry point in just a few minutes.
Trade results:
1,2,3,4,5,8,10,13: Full winners (11C and 20C).
6,7,9,11,12: Half winners (11C and B/E).
More...
 
Quote from amitman:

with Haikin Ashi display (which is, very recommanded, BTW, for better visualization of price action).
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Really? I'm not sure about H/A candlesticks because they aren't showing you the actual price. H/A is derived through a formula instead of showing actual price data.

I used to have a link to an article explaining why you shouldn't use them, but I don't seem to be able to find it now. I'll keep looking. I had it bookmarked on another computer.

Of course, if it's working for you, keep it up!
 
Quote from Floyd Roberts:

Amitman,

Thanks for posting your trades. How are you defining a wave? Are you defining it based on price moving above and below the 240 wma?

Floyd
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Hi,
I define a wave by a change of slope of the 17HMA, the changes are marked with black and white candelsticks on the chart, black candelstick = slope changed down, white cadelstick = slope change up.


Quote from IronFist:

Really? I'm not sure about H/A candlesticks because they aren't showing you the actual price. H/A is derived through a formula instead of showing actual price data.

I used to have a link to an article explaining why you shouldn't use them, but I don't seem to be able to find it now. I'll keep looking. I had it bookmarked on another computer.

Of course, if it's working for you, keep it up!
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You're right, therefore I look on a "normal" 1min chart too but since my entries are based on Highs and Lows H/A are good since their highs and lows are the actual price and not something calculated, and H/A give the advantage of seeing better if the current move is up or down and how strong it is.
I'll refer you to the AHG thread where Anekdaton examples are H/A charts and you'll see how clear the charts look.

The AHG theard:
http://www.elitetrader.com/vb/showthread.php?s=&threadid=99283&highlight=ahg
 
Quote from fearless9:

re Heikin-Ashi


Hi there,

You may want to read these comments.

http://www.ensignsoftware.com/tips/tradingtips57.htm


regards
f9
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Thank you, fortunatly the things that bothers him in H/A charts are exactly the reasons I use this charts for so the article really encouraged me in keep using them and understanding them better. I don't think it's an "holy grail" or something but I think you can definately use it as a visual aid.
 
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