ES Journal Archive (2006 - 2008)

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Some review on the internet of the Wyckoff Spring shows that there is generally consolidation prior to the spring. This is a basic part of my method although I had never heard of the spring before. The spring is not evident on the daily/weekly charts and I am still short. :)
 
Quote from dmartin:

Buy1Sell2: Your exit strategies are interesting to say the least. You shorted your full position at 1511--had an unrealized gain at around +71 points and we are now approaching where you shorted. From my vantage point entries are important but it is the exits that define excellent trading. This is the second time in the past 4-5 weeks that I have seen you fail to take profits at very important support levels.

DMartin
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B1S2 trades big trends and uses wide stops. Trend traders generally do not look for reversals, since, as the theory goes, reversals are only evident after the fact.
 
Quote from dmartin:

Buy1Sell2: Your exit strategies are interesting to say the least. You shorted your full position at 1511--had an unrealized gain at around +71 points and we are now approaching where you shorted. From my vantage point entries are important but it is the exits that define excellent trading. This is the second time in the past 4-5 weeks that I have seen you fail to take profits at very important support levels.

DMartin
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Happens sometimes (actually most of the time with my style). --- My trade off is missed opportunities in favor of less activity/more time to engage life/hit a grand slam. I am comfortable with this. :)
 
Quote from mbusch:

Taking off 1/2 at 1486.00 for +4, letting other half ride. Stop moved to breakeven.
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Remaining short stopped out at breakeven. Now flat in daytrade account. Shouldn't have moved the stop to breakeven...mistake. My original stop at 1492 was much better. I may re-enter short.
 
Quote from Buy1Sell2:

The spring is not evident on the daily/weekly charts. :)
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Higher lows and lower highs = congestion, so I have time to chat for a minute.

No, a spring is NOT evident on the daily and weekly charts, but they are evident on intraday charts (including the 60 minute charts).

It really is not that complicated. First, Wyckoff spring. If it trades below support, and then quickly snaps back, that suggests that there is no supply, no more sellers. If there were sellers, price would not have snapped back.

Second, Wyckoff upthrust. If it trades above resistance, and then quickly goes back into the previous range, that suggests that there is no demand, no more buyers. If there were buyers, price would be auctioning up.

A trader could make a living trading just springs and upthrusts. Study price intensely when it reaches previous support and resistance levels. When the market tips its hand, hop on.
 
Quote from mbusch:

Remaining short stopped out at breakeven. Now flat in daytrade account. Shouldn't have moved the stop to breakeven...mistake. My original stop at 1492 was much better. I may re-enter short.
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The breakeven stop is in my view the bane of most traders. I believe it chokes off a trades ability to be extraordinarily profitable. Mind you-I am on a larger time frame, but the principle is still the same. :)
 
Quote from smilingsynic:

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No, a spring is NOT evident on the daily and weekly charts, but they are evident on intraday charts (including the 60 minute charts).

It really is not that complicated. First, Wyckoff spring. If it trades below support, and then quickly snaps back, that suggests that there is no supply, no more sellers. If there were sellers, price would not have snapped back.

Second, Wyckoff upthrust. If it trades above resistance, and then quickly goes back into the previous range, that suggests that there is no demand, no more buyers. If there were buyers, price would be auctioning up.

A trader could make a living trading just springs and upthrusts. Study price intensely when it reaches previous support and resistance levels. When the market tips its hand, hop on.
More...

Yes, agreed. What Wyckoff is describing is basically divergence.
 
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