ES Journal - 2019/2020

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game said:
Yeah last two longs was a return to the 'pressing' habit in anticipation of a turn back up to the highs. Needed to wait and only take longs off the bottom of the range.
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If you shorted near the close at the bottom of the range, it would work very well. I think your long at the top has good basis although shorting the top has a higher winning probability for a range market. A trader can consistently makes money with a winning probability smaller than 50%.
 
speedo said:
If I am understanding your question correctly, yes while in a trading range (roughly a horizontal channel) it is a buy low, sell high scalpers market. I would recommend scalping only for experienced and disciplined traders as it is a tougher game that trend trading.

I am attaching a chart to show you what I saw today. The first down arrow was a pullback short after a bear breakdown from a range. Depending on ones trade plan, you could be out with a measured move and or keeping a stop above the entry swing in which case there was never a strong technical reason to exit any shorts left. Had you taken the measured move for a profit, the second arrow gave a re-entry short which fizzled. There were reasons on higher time frames to distrust that entry but it was valid none-the-less.

If you were flat and it became clear that we were indeed in a trading range, the triangles on the chart are examples of the buy low-sell-high scalps which could have been taken. The high line over the range by the way is also right at yesterdays low which acted as resistance while the range developed.

Again the scalps are for experienced traders. It's best to wait for a clear breakout of the range with the understanding that most range breakouts will fail...that's why price falls back into the range. Inexperienced traders are getting all excited about bull breakouts and must sell their position when it fails while at the same time experienced traders are selling into short positions and vice versa. Anytime you are in a trading range, bull and bear arguments can be made

View attachment 228570
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Nice sharing. i will review it again in the future. For 2nd entry long, how would you manage it? thank you much!
 
Huyang said:
Nice sharing. i will review it again in the future. For 2nd entry long, how would you manage it? thank you much!
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The end of the third push down of the morning short would have been seen by some as a major trend reversal long. If you are referring to the range long, it's a scalp. You don't want to take less than 4 ticks but somewhere between the middle and nearing the top of the range but I repeat, range scalps are for EXPERIENCED traders.
 
speedo said:
The end of the third push down of the morning short would have been seen by some as a major trend reversal long. If you are referring to the range long, it's a scalp. You don't want to take less than 4 ticks but somewhere between the middle and nearing the top of the range but I repeat, range scalps are for EXPERIENCED traders.
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Very sorry. That was a typo. i meant your second short (2nd arrow down). I agree range scalps are for experienced traders. Thank you very much!
 
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