ES Journal Archive (2006 - 2008)
- Thread starter Buy1Sell2
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B1, it's ironic in a way that you started this journal in an attempt to better your skills in shorter TF based trading and you are making such an impact on readers regarding your longer TF trades 
I just wanted to post this chart of daily S&P500 for others to see this almost perfect long set-up based on TA, I understand now, that opportunities like this one are worth waiting for and once there is something in the making waiting out the best possible time to enter into the trade with confidence of it being a high probability one. I am somewhat confused when I hear some traders stating that TA does not work as so many base their trades on signals derived from commonly used indicators
I can understand it in situations during low volume periods it would be easier to create a dis-balance for a major trading entity, as they know that on shorter time frame occurrence of a BLD in say RSI, so many traders will take the bait, go long with their 2-3 point stops and then this major on the opposite side can afford to drive the market down temporarily to squeeze the longs, including the ones using high leverage. Although I still trade short term TFs and consider them to be more exciting/involving if anything, I see your point why positional approach has been the backbone of your trading career. Reminds me of an old joke (probably all heard it as it's as old as dinosaurs turd)
Young and old bull chewing grass and notice cows on the other side of the fence, so the young one says to the old one:
- Let's quickly run across the field, jump over the fence and f... that cute cow over there...
The old bull replies:
-Nope, let's slowly walk to the fence, slowly walk through gate and slowly f... all the cows.
I just wanted to post this chart of daily S&P500 for others to see this almost perfect long set-up based on TA, I understand now, that opportunities like this one are worth waiting for and once there is something in the making waiting out the best possible time to enter into the trade with confidence of it being a high probability one. I am somewhat confused when I hear some traders stating that TA does not work as so many base their trades on signals derived from commonly used indicators
I can understand it in situations during low volume periods it would be easier to create a dis-balance for a major trading entity, as they know that on shorter time frame occurrence of a BLD in say RSI, so many traders will take the bait, go long with their 2-3 point stops and then this major on the opposite side can afford to drive the market down temporarily to squeeze the longs, including the ones using high leverage. Although I still trade short term TFs and consider them to be more exciting/involving if anything, I see your point why positional approach has been the backbone of your trading career. Reminds me of an old joke (probably all heard it as it's as old as dinosaurs turd) Young and old bull chewing grass and notice cows on the other side of the fence, so the young one says to the old one:
- Let's quickly run across the field, jump over the fence and f... that cute cow over there...
The old bull replies:
-Nope, let's slowly walk to the fence, slowly walk through gate and slowly f... all the cows.
My view is that weekly chart (TA) looks bullish now, at least for the time being. The sell-off that happened has taken the index to the price levels where B1S2s divergence in HIST (also seen in CCI) started forming (1225 below average). In my experience so far with divergence based trades, price will often go back to the average level when the divergence started formation. I am not certain whether this is a good explanation though. CCI was almost @ -200 mark and is now starting to look bullish breaking -100 mark, long shadow doji can be seen on a weekly chart as well and price action following it confirms bullish signs and if 1290 resistance is broken there probably will be another rally, HIST on weekly has started turning upwards. Anyway, I am long in my positional account.
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50 day chart =down,
50 dma =down, may clear it after all these days/weeks,
most all time frames past 50 days on this contract =down
Shorts & longs both got parts of 7 points possible move intraday;
strange , but true , told a YM trader earlier this week ,traders dont seem to be quick to buy @ '87 levels
Quote from romik:
B1, it's ironic in a way that you started this journal in an attempt to better your skills in shorter TF based trading and you are making such an impact on readers regarding your longer TF trades
Hopefully it's making an impact. It is my belief that the longer frames offer better extended profit potential. I just believe that having a 2 point stop with a 1 or 2 point profit target is not conducive to building an account significantly. I do believe that most new traders make the mistake of trying to day trade first as opposed to what I have done which is trade much longer frames and letting profits run. As you may be aware, my daytrading was an experiment and done to allow myself to communicate and relate to the great number of daytraders who are here on ET. Thank you for your nice comments and your participation here!.
Nope, WRBs that I trade are on 20 min TF max and body has to be at least 4 points (H to L) and very minimum shadows if any, this one on hourly besides being over 20 min TF has a 4 point shadow at the top and a 2 point shadow at the bottom, not my cup of tea, but BRD is cool.
EDIT: If you look on 15 min TF you would see what I am referring to.
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