Quote from VisionTrader:
Long YM 9299
Stop 9268
Will explain later
Had more time than I thought and wanted to get this done. I will describe each trade as they happen for better understanding. In this case, I entered long.
Take a look at the stochastic on this trade. There were three consecutive higher lows made. Price also made a triple bottom technically and both shared a common low made by the 10:05 candle.
I always find the six critical points of my divergence trade. 2 on my sto, 2 on my MACD and 2 on price. This is absolutely critical and helps filter any noise. We will talk about this more as time goes on.
I entered on the 11:25 green candle which hooked the sto up. The MACD will always go first and provides notice of a possible set up.
Depending on the situation, I will set my stop on a DOW trade at 20 - 40 points, 2-4 points ES. I made a typo on the stop above. Generally it should be set at 20 points below the pivot low.
On this trade my entry was a little early on a long up candle. More often than not, you can wait for a retracement on the next candle and get in at a better price if you get a long candle. Sometimes price will run from you, but not usually.
Ideally, you want this trade at the bottom of the channel. In this case, I was looking for a run up to around 9340 the high for the day. Obviously, it did not happen.
I got out at at the top of the channel when things went sideways.
I always get flack about my risk:reward. Let's not get into that in this thread. I am a high risk trader. My comment is....incorporate your on trade management style. If I risk 20. I like to make a minimum of 40 on the DOW. Risk 2 on ES, make 4 minimum.
This is a good set up and as TS said, "the 5M will run". Hopefully, we can get more of these on better volume days. If I get three consecutive on the sto and macd, I will almost always take it.
I will add a couple more comments in a separate post. Here is the chart.
