ES Journal Archive (2006 - 2008)
- Thread starter Buy1Sell2
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Really isn't that weak. I like the tail outside the BB which could represent the last surge of longs getting out and reversing their positions etc and also , this time we have the RSI doing a bit of a failure swing at the OS line. The one I took yesterday didn't have the RSI with it as I had mentioned before. I will still wait for the 240 to give me indication to add, but if a person wasn't long yet at all, it may be worth considering a small probe with stop below the needle there (not just one tick though).
I do need to point out though that if the Histogram would turn up here even if above the zero line, then this would be a triple. Histogram has not turned up from this last trough yet.
Yes the daily certainly has potential for a triple. I don't think this could happen on the Histogram though, at least not the way it looks now. Right now, the Histogram is making a lower trough than the last one. The only way for the Histogram to make a higher trough would be to rally this afternoon and that would not be divergence since we didn't get lower prices. There certainly could be triple on RSI and CCI though.---This is where it gets tricky-we have to go lower than the recent low to make that divergence happen. Most people will not have the patience or wherewithal to do that. Right now it would be best to trade the 240 and 60 and look for these items--Remember, the BLD that we had on daily has already been a fantastic success.
In the past of course, I have never used charts of less than a day to enter and exit. It's only been since the inception of this journal, that I have begun intraday trading. Typically I would trade off of reversals on the daily chart and then close positions on reversals the other way. As far as closing out for a loss, I use 2 percent of the total liquid net worth as a point to get out. I just don't usually reach that though because I am conservative and scale in. As far as other folks that may be using high leverage etc, I would recommend the 2 percent rule of course, but in addition suggest that stops be used and those stops be placed outside reaction highs or lows. If that stop creates a situation where a trader's liquid net worth would be compromised by over 2 percent, then that trade should not be taken.
What I have been doing recently is only looking for long entries since I am short in the positional account. I was clearly wrong on the perceived BLD yesterday at 1260. What this amounts to is taking profits on some of my short positions and yesterday where I was wrong, I in effect limited my profits on the positional short. This is what I call trading around the position and yesterday was not as helpful as I would have liked, but I have room to add quite a few more positions if I desire. This is another reason that I do not hit 2 percent of the total portfolio as a loss by the way. Account values are actually up the last two days, although they are not up as much as they could be since I took the 5 units long at 1260. Again, I caution people against emulating my style unless capitalized well enough to handle it. If the capital is not there, or if highly leveraged, then stops must be used.
Just got back in a few hours ago, vacation felt good. Man, I wish I had held on to that 1282.25 short!! Oh well. B1, How much upside do you see @ this point. I saw that 1290 on the dot was the hi. I recall you called 1290 as a hi few weeks ago. Anyway, I guess I'll watch tommorrow and look for an optimal entry.
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