Emini divergence journal

[leapfrog]

Thanks for sharing this journal - very generous of you.

Two questions of clarification, i f I may:-

1) Once in a trade, you do not exit or reverse if you get a contra signal?

2) I think you said earlier you enter with a market order. Do you exit with a Limit or Market order once Price crosses the Lower Keltner? (Probably doesn't matter too much given the large point gains that you would have with a profit exit. But just curious.)


Very helpful thread. - rcm

 

[hit_n_run]

no pm please

thanks for posting the ES mini chart. 2 very nice trades today, congrats.

 

[no_pm_please]

Quote from rcmcdougall:

Thanks for sharing this journal - very generous of you.

Two questions of clarification, i f I may:-

1) Once in a trade, you do not exit or reverse if you get a contra signal?

2) I think you said earlier you enter with a market order. Do you exit with a Limit or Market order once Price crosses the Lower Keltner? (Probably doesn't matter too much given the large point gains that you would have with a profit exit. But just curious.)


Very helpful thread. - rcm

1). That is right. It would be close to impossible to have everything line up going the other way without first having the trade exited.

2). I use market orders to get in and out. Sometimes if I need to be away from the screen I'll put in the stop and put in a limit order at a little less than the Keltner Channel band just to have it there in case the market moves fast while I'm away. I haven't had both the stop and the limit order hit yet (probably just a matter of time before I get hit by one of the emini bad spikes).

Normally I would have stopped trading after the first trade to get some sleep. Thanks to keeping this journal I made some extra today. Thanks for your interest. Maybe this is going to be helpful for both of us.

 

[no_pm_please]

Quote from hit_n_run:

no pm please

thanks for posting the ES mini chart. 2 very nice trades today, congrats.

You're welcome. Ok I'm done for the day. I need to rest a little before work. Be back tomorrow. Hope the luck holds up! LOL

 

[bubba7]

Quote from no_pm_please:



I don't know what you mean? Price is to the right near the top with the Keltner Channel. New bars go from right to left so I leave the price on the right to see where we're trading. To get a exact price I use the drawing tool with the vertical chart status. In realtime all I need do is se the top line of the chart with the realtime price.

trend lines are on right side of trend usually. you do not use the trendline side if price; you use the opposite side.

 

[bubba7]

Quote from no_pm_please:



Oops...forgot to put it in the exit method.

The basic method is either to get stopped out at the stop loss point or exit when the price touches the opposite Keltner Channel point. In real trading I usually exit just before the point is reached. Pretty simple and objective.

thanks so much.

 

[Plop]

It is regrettable that it only works for the SP.....

 

[opm8]

Quote from Plop:

It is regrettable that it only works for the SP.....

You could use cci for vanilla divergence, see if that works.

--opm8

 

[electron]

Quote from Plop:

It is regrettable that it only works for the SP.....

How do you know that? Have you backtested it? Or perhaps someone else has?

 

[larrybf]

PRIOR to this journal i have only used divergence for scalping trades.... really nice that you have very nicely detailed using divergence for trading the bigger market movements intraday..... thanks..... one question..... is your use of 2.5 / 20 ma keltner based upon experimentation of various settings or did you just decide upon this one to use and stuck with it.???? thanks again for a great journal.....