ES Journal Archive (2006 - 2008)
- Thread starter Buy1Sell2
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I would say that the short term TF divergences are best when they agree with predominant daily trend. This is what I have learned in this journal. If trading against the trend, you have to stop out and raise the trade size on the next, which is also very lucrative when it does come in and reverse. Example of a possible 5 minute BLD in a market where the daily trend is up can be found currently on the Euro FX chart. The predominant trend is up. We've had a retracement with a BRD earlier today which was good for about 30 pips (normal in that market on a counter trend trade) and now we are looking at a possible 5 minute BLD. Odds are that the BLD will have a more extended gain than the BRD due to the uptrend---and Yes I am long.
I believe Romik, that the more and more I look at the short term intraday charts( I still review them even though I trade on the longer frames), that the double top or double bottom divergences seem to provide very good entries. For example, looking at the 5 minute, there was the Busted BRD, but now we have had a double top with some space in between and lower RSI and Histogram etc. and have seen a fairly quick retracement. This is of course, one of the prime patterns on a daily chart as well and may turn out to provide the very best opportunites intraday. Now with respect to the Busted BRD earlier, I think that it's probably a better bet to have the second Histogram peak significantly lower than the first, which we didn't get on that one. Not saying those don't work, but the significantly lower peak , I believe helps to define th strength of the BRD. Thoughts? Anyone?
Quote from Buy1Sell2:
I believe Romik, that the more and more I look at the short term intraday charts( I still review them even though I trade on the longer frames), that the double top or double bottom divergences seem to provide very good entries. For example, looking at the 5 minute, there was the Busted BRD, but now we have had a double top with some space in between and lower RSI and Histogram etc. and have seen a fairly quick retracement. This is of course, one of the prime patterns on a daily chart as well and may turn out to provide the very best opportunites intraday. Now with respect to the Busted BRD earlier, I think that it's probably a better bet to have the second Histogram peak significantly lower than the first, which we didn't get on that one. Not saying those don't work, but the significantly lower peak , I believe helps to define th strength of the BRD. Thoughts? Anyone?
Aye skipper, I got nothing to add here, the main problem comes from time restriction between recognising a pattern and reaction lag, I am pretty much done with short TF divergences apart from exit signals as mentioned earlier, I still find it interesting to see which ones work and the ones that fail, there is just too much stuff to consider.
There is nothing to believe, I see your results, I am still doing back testing, also my toilet paper traded journal is starting to turn positive, i only identified divergences in the stocks without screening, so there possibly were better plays out there. AT&T (T) on weekly looks awesome BRD at the moment and AAPL worked excellent, just like EBAY earlier on (very similar pattern).
So I am a believer Thanks again, I must sound like the right ass kisser LOL Seriously now, you deserve to be appreciated for sharing your valuable information.
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