Emini divergence journal
- Thread starter no_pm_please
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From an earlier post by no_pm
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Quote from macal425:
How much discretion do you use in not taking a trade after it sets up. For example, say that the current 5 min bar does not make a new high but ends up being a strong down bar that takes out much of the range down to the lower Keltner. Would you still enter on the close of the bar or would you pass on the trade knowing that there is probably not much downside left?
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no_pm's reply
The down bar would have to stay within the stop loss range. In this trade I've checked the Keltner width a couple of times and calculated the stop loss around 2.75. If the point of entry were more than 2.75 from the highest bar then I would have to wait for a retracement back up. If you look at some of the past trades you'll see after the entry the market usually comes back to the entry point and tests the high. That can be a good place to get in when the down bar moves too far.
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If I understand this correctly, then this last trade was a valid entry as well.
I'd like to know more about "more than 2.75 from the highest bar", would that be from the high of the bar? More flexible if you use the midrange, but more accurate in what the divergence reflects if you use the high.
Also, what if the retracement breaks the divergence by making a new peak on the volume oscillator. Shouldn't this cancel the trade as well?
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Quote from macal425:
How much discretion do you use in not taking a trade after it sets up. For example, say that the current 5 min bar does not make a new high but ends up being a strong down bar that takes out much of the range down to the lower Keltner. Would you still enter on the close of the bar or would you pass on the trade knowing that there is probably not much downside left?
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no_pm's reply
The down bar would have to stay within the stop loss range. In this trade I've checked the Keltner width a couple of times and calculated the stop loss around 2.75. If the point of entry were more than 2.75 from the highest bar then I would have to wait for a retracement back up. If you look at some of the past trades you'll see after the entry the market usually comes back to the entry point and tests the high. That can be a good place to get in when the down bar moves too far.
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If I understand this correctly, then this last trade was a valid entry as well.
I'd like to know more about "more than 2.75 from the highest bar", would that be from the high of the bar? More flexible if you use the midrange, but more accurate in what the divergence reflects if you use the high.
Also, what if the retracement breaks the divergence by making a new peak on the volume oscillator. Shouldn't this cancel the trade as well?
MarkB,
Thanks for the chart. A very clear difference between what the ES chart said and your SP chart for the Chaikin. Interestingly though, the CCI 6 and CCI 14 were both in DV at that time on my ES chart.
I know that's not no_pm's system,
but still worth taking a look at, for me at least
jd
Thanks for the chart. A very clear difference between what the ES chart said and your SP chart for the Chaikin. Interestingly though, the CCI 6 and CCI 14 were both in DV at that time on my ES chart.
I know that's not no_pm's system,
but still worth taking a look at, for me at least
jd
NO_PM must have had a late session last night.
Hello,
I see you are new here....or at least your screen name is. This question has already been answered, just research the thread.
Michael B.
I see you are new here....or at least your screen name is. This question has already been answered, just research the thread.
Michael B.
That second one turned into a nice trade as well. Sorry I didn't take it, of course!
I'm not pretending to understand the finer points of this, and I do hope that we see no pm's comments and answers to our questions when he has the time to make it back. Just posting this for anyone who wants to see the setup.
I'm not pretending to understand the finer points of this, and I do hope that we see no pm's comments and answers to our questions when he has the time to make it back. Just posting this for anyone who wants to see the setup.
The reason I ask is if he is doing 10 emini, today he would have sold short at 99050 and covered at 98375 he would have made $3375. He metioned in a previous post that they pay for a musician stinks. I want you to make economic sense out of this. Please show me how working is necessary to pay income taxes. I don't get it.
jabbar11
jabbar11
jabbar, I'm not sure that this is a valid line of discussion for a thread about a specific trading method.
But if you search other posts by no pm, not even just this particular thread, you'll see that he has some expenses and goals which would line up with the desire to not live off of profits minus taxes.
But if you search other posts by no pm, not even just this particular thread, you'll see that he has some expenses and goals which would line up with the desire to not live off of profits minus taxes.
Magna
Administrator
Thanks for posting the chart Mark, it's nice to see the differences (I don't currently subscribe to the SP). For instance, in the ES the 11:55 bar didn't make a lower low while on the SP it did (a critical requirement for no_pm). BTW, notice on this trade how the stop would have been well below the lod, so even a retest of the low wouldn't have stopped you out (unlike the earlier trade).
[LATER EDIT: Jabbar, your question has been asked, then it was suggested you research the thread, you responded to that, etc. So let's please move on, thanks.]
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