ES Journal Archive (2006 - 2008)

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the three higher troughs in the RSI chart is the buy signal for the long grail?

what are the cover calls and sell calls pointing out?

Quote from Buy1Sell2:

They can either be lower or of equal height. There are three peaks on the left side of the chart--generally a strong sell signal. "House of three peaks" was so named by Boy Brutus.
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Quote from m4a1:

the three higher troughs in the RSI chart is the buy signal for the long grail?

what are the cover calls and sell calls pointing out?
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Each successively higher trough is a grail. The selling of the calls occurs at points where I believe that the market doesn't have huge upside potential and where I can "get away" with selling premium and then cover it lower thus keeping most of the premium from the call buyers. By the way, I never ever sell put options.
 
Quote from m4a1:

the three higher troughs in the RSI chart is the buy signal for the long grail?

what are the cover calls and sell calls pointing out?
More...

If anyone needs to see an example of the long grail in action, please pull up the Dec 06 Wheat contract (WZ6) and see if you can locate any long grails and whether they worked or not. Go back quite a ways on that contract as well :)
 
Quote from LondonUSTrader:

There are very few net profitable emini daytraders that I have come across using indicators that successfully. Reason being they lag and you need to do something opposite of the herd to be successful. So, if you do use indicators either you would have to utlilise a unique combination or use them in a way that is different than most. Not saying it can't be done, but it is rare.

There are plenty of +4 trades in the ES during times of normal volatility, very few during times of low volatility.

One should always look for a trading style and timeframe that suits their personality.
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Yes, I agree with this as I have found out in this journal. It is part of the "charts look different" statement that I made. Indicators can be used effectively, but only with increasing position size as I did in the first pages of the journal with "probes". I would go one further here and agree with the first line of your post and stop after the word "daytraders" and before the word "that"---Not saying there aren't successes but this is what I believe. :)
 
what are your parameters for the rsi?

would you buy calls to establish a position or do you only do that to cover a short position?

if you are willing to sell calls, then why not sell puts?

Quote from Buy1Sell2:

Each successively higher trough is a grail. The selling of the calls occurs at points where I believe that the market doesn't have huge upside potential and where I can "get away" with selling premium and then cover it lower thus keeping most of the premium from the call buyers. By the way, I never ever sell put options.
More...
 
I only buy calls in a strategy that is my namesake-- a net credit raito call spread. I do not sell puts, because they have to be held in my plan over the weekend and I don't want to liquidate options each Fri due to slippage concerns. RSI is the standard 14. I never change the standard settings on any indicator--there is no need to with position trading.
 
IMO there has to be a pullback here from these levels, CCI on daily is in well O/B territory, if I was long today, still, I would be very cautious to keep on holding.
 
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