ES Journal Archive (2006 - 2008)

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Here's what I'm looking at.

If you become familiar with just one tool and learn how to use it well, it can make you a lot of money.

Good trading,

Jimmy Jam
 

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Buy1Sell2,

Hello. Haven't posted in this thread before have been a long time lurker, though. I have been interested in your trading as it seems simple and straight forward and I tend to get so complicated I can't keep from seeing trades in both directions at the same time. I went back over as much of this thread as I could before I believe I crashed the data base last night.

I had a couple of questions for you if it would be alright. One of the problems I had today was something I encountered in the past with divergence trading and was wondering if there was something you did to filter it out. I am learn to trade the Russell by the way. I missed the whole up move early but got great divergence about half point from the top. Then as it worked it's way back down there was bullish divergence starting on the smallest time frame. It eventually turned into a really nice divergence signal for the up move but not for another couple of points down. It's a bit confusing when the larger time frames are bullish and your short. Is this something you learn to ignore with experience until a stronger signal comes in the large time frames? Also I noticed a 1000 pages ago a parabolic SAR on your chart. Do you find that helpful as a trailing stop or was that just an experiment? Thank you for any advice.

JIM
 
very nice price action for an option expiry day IMO. We are getting really close to some nice levels for another homerun trade with minimal risk. This 1494 is a resistance level as it is, but in my trading plan if I am going countertrend I always reduce size and wait for the least possible risk entry. My zone is coming in at 1498-1500. I will be getting a unit short at this level next week with a 2 point stop and adding on with a reversal bar most likely. First profit 14 points, second 28 points and just trail the last piece and see what happens.
 
For the past year and a half or so , whenever I am at a loss for insight as to what 's about to happen in the market- i check out this thread and it often helps in decision making many times reinforcing decisions and other times giving me a warning sign to stop out . I 'd like to thank the various people with their experience for sharing it here . Good Weekend
 
Quote from apex82:

very nice price action for an option expiry day IMO. We are getting really close to some nice levels for another homerun trade with minimal risk. This 1494 is a resistance level as it is, but in my trading plan if I am going countertrend I always reduce size and wait for the least possible risk entry. My zone is coming in at 1498-1500. I will be getting a unit short at this level next week with a 2 point stop and adding on with a reversal bar most likely. First profit 14 points, second 28 points and just trail the last piece and see what happens.
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Question: With your ability to call the levels, why bother with the counter-trend trades?

I would think you'd have an insane hit rate by just catching the retracements of the dominant trend.

JJ
 
Quote from Allen3:

Buy1Sell2,

Hello. Haven't posted in this thread before have been a long time lurker, though. I have been interested in your trading as it seems simple and straight forward and I tend to get so complicated I can't keep from seeing trades in both directions at the same time. I went back over as much of this thread as I could before I believe I crashed the data base last night.

I had a couple of questions for you if it would be alright. One of the problems I had today was something I encountered in the past with divergence trading and was wondering if there was something you did to filter it out. I am learn to trade the Russell by the way. I missed the whole up move early but got great divergence about half point from the top. Then as it worked it's way back down there was bullish divergence starting on the smallest time frame. It eventually turned into a really nice divergence signal for the up move but not for another couple of points down. It's a bit confusing when the larger time frames are bullish and your short. Is this something you learn to ignore with experience until a stronger signal comes in the large time frames? Also I noticed a 1000 pages ago a parabolic SAR on your chart. Do you find that helpful as a trailing stop or was that just an experiment? Thank you for any advice.

JIM
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The answer is very simple. Only trade in the direction of the larger trend and ignore the countertrend signals even though they are tempting and may make you money.
 
Quote from Buy1Sell2:

The answer is very simple. Only trade in the direction of the larger trend and ignore the countertrend signals even though they are tempting and may make you money.
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Excellent advice !

... shame only one in ten reading it will be able to actually follow this simple plan....

I like your use of the word "tempting", it really is the perfect word to describe how the market loves to trick us into trying to fade the primary trend... Fighting the trend never pays in the long run.
 
Quote from TrendPro:

Excellent advice !

... shame only one in ten reading it will be able to actually follow this simple plan....

I like your use of the word "tempting", it really is the perfect word to describe how the market loves to trick us into trying to fade the primary trend... Fighting the trend never pays in the long run.
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That's all well-and-good, it really is.

But there are many ways to define the primary trend, and just because a minor trend line has been broken, that does not mean a major trend line has ... but there is also the little matter of authentic reversals against the trend.

Not such a simple plan after all, now is it?

Jimmy Jam
 
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