Talk about retracements! Come on, throw somethin' down for the little guy! My trade today, went short at 1007.75 on the pivot breakout in the 10:35 bar, covered at 1007.50 two bars later. I know that is a sissy stop, but I need to protect my capital at the moment. I figure the good trades will run and I only need good trades. Now how 'bout them retracements!
Daytrading Breakouts in the ES
- Thread starter Johnny Rotten
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Rets are not yet a part of this strategy, so all I can offer is what I see.
A severe plunge such as that which we had near the open rarely lasts long unless there has been some cataclysmic event. Instead, there is usually a bounce at some point, in this case, yesterday's close (traders trading the gap).
You can trade that bounce if you like, but the longer the bars, the more of a struggle there is, and wide stops are probably not the best choice. You may want to wait for tighter bars, such as the one I mentioned earlier. These suggest temporary equilibrium, and a move away from that bar enables you to place a tighter stop.
Incidentally, the MA would have been of no use to you in shorting this particular ret.
Something told me not to take that trade since the pullback at 10:05 was so large. But I did anyway 
However, even if i had not, there was another BB breakout at 10:25, a retracement in the next bar, and what looked like a good trade on the 10:35 bar-- but that failed too. I guess you can't help a choppy day.
Please JR, show us how you handle retracements
lux
However, even if i had not, there was another BB breakout at 10:25, a retracement in the next bar, and what looked like a good trade on the 10:35 bar-- but that failed too. I guess you can't help a choppy day.Please JR, show us how you handle retracements
lux
So basically pullbacks are less mechanical and done more on instinct, with good stops, if I understand correctly.
They're less mechanical, but they are definitely not traded on instinct. That is, they can be, but trading them on instinct is no smarter than trading BOs on instinct. Profitable rets follow the same market principles as every other profitable trade.
There are only three types of trades: rets, BOs, and tests. Everything else is just a variation on these themes. In this case, the ret was deeper than would otherwise be suggestive of a profitable entry, but it also represented a test of the opening high. Given the shooting star at the test along with the volume that accompanied it, one could "gamble" that the test was more important than the ret and trade accordingly, i.e., that a short entry was a higher probability trade than a long. A tightening of the bars is also a help.
I don't want to take this thread too far off-topic, but that's about it in a nutshell.
I have a question about the various datafeeds for Eurex. If I use the IB data, (which doesn't have backfill), then I would have to have it up all night to get the European markets collected on SierraChart, right? Does this mean I would have to have TWS up all night as well? Doesn't TWS automatically disconnect at a specific time each night, (I'm in CST/ US). If this ic correct, how would I be able to get it back up for the 3 A.m. Europe open? I don't want to normally trade the 3 to 5 A.M. period, but I want to have that data on my charts when I do get started for the day. Anyone have a solution?
Also, I'd like to hear if others have had problems with MyTrack as a data provider, as noted in an earlier post.
Thanks
Ham
Also, I'd like to hear if others have had problems with MyTrack as a data provider, as noted in an earlier post.
Thanks
Ham
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