ES Journal Archive (2006 - 2008)

[tomahawk]

Quote from spersky:

Volente,

Please explain what the signals would be for tommorow, and how you would trade them. I am trying to understand this "rule of ten"

Do you base tommorow trades of the close today and sell at +10 and buy at -10? Your stop is 3 points you already told us that. Additional info would be appreciated.

Regards,
Steve

It can't be planned a day in advance ... it's based off the pivots that develop during the session.

Vol, correct me if I'm wrong.

edit: clarification - "pivots", meaning peaks and valleys

 

[spersky]

ok so tommorows Floor trader pivots?

 

[tomahawk]

Quote from spersky:

ok so tommorows Floor trader pivots?

No .. (see my "edit")

The (+/-) peaks Volente reviewed for today seem pretty clear on a 5-min. chart, but for all I know others may use something different.

 

[tomahawk]

Another way to say it would be the swing highs/lows.

 

[spersky]

I am always willing to learn a new technique. I will watch for these pivots tommorrow.

Is it hard to know when the pivot is occuring? Seem like you would miss half the run in the opposite direction before you realize that the pivot has occcured.

 

[Mins]

Quote from spersky:

I am always willing to learn a new technique. I will watch for these pivots tommorrow.

Is it hard to know when the pivot is occuring? Seem like you would miss half the run in the opposite direction before you realize that the pivot has occcured.

I think your getting confused, maybe this can help you out:

rules of 10 - is a simple rule, basically take any swing low/high on intra-day chart and then use 10ES point / 100YM points as a possible target/entry pivot.

If you look at a lot of price action, price often turns when it has ran 10 points in one direction.
E.g. if you want to short and price is rising, look for 10ES points from the swing low as a possible projection for the run and a place where you can start looking for shorts.

Hope this helps, if not then try using searching this forum, there is a lot of previous guides on the rule of 10.

 

[tomahawk]

Quote from spersky:

I am always willing to learn a new technique. I will watch for these pivots tommorrow.

Is it hard to know when the pivot is occuring? Seem like you would miss half the run in the opposite direction before you realize that the pivot has occcured.

You are supposed to miss the run (sort of) ... first you have a pivot, then it goes 10 points one way or the other, then you FADE the 10 point move. The play is the fade of the 10 point move. The pivot simply marks/identifies the start of the 10-point move which you are going to fade.

I better shut now up or Volente might kill me.

 

[volente_00]

Quote from tomahawk:

You are supposed to miss the run (sort of) ... first you have a pivot, then it goes 10 points one way or the other, then you FADE the 10 point move. The play is the fade of the 10 point move. The pivot simply marks/identifies the start of the 10-point move which you are going to fade.

I better shut now up or Volente might kill me.

But often one is already in the current run from a previous signal.

the signal in ah was 84 from 94, will it stick again ? who knows, but 83.5 is the 50% level from today's move. the 50% for the week is 83.75 es or ~ 85 cash. reaction high this morn was 85.5 es. the 50% of the last move ifrom 72 to 99 is 85.5 . If this can hold around this level odds are we move higher tomorrow. eco at 10 am, will tell the story. We are still in a ihs and feel we will test the 200 day around 1407 and then 1418 - 1420 before further moving to 1468 min - 1480. My read of options still indicate 1350 to 1420 til may oe.

 

[spersky]

Thanks for everyone explainations. It make a ton of sense.

 

[jagmot]

Still lurking but I just finished catching up reading the journal and I can't figure something out.

Why would someone only want to trade one system?

Seems like many people want everyone to think that their trading system is best.

It seems to me that you would rather trade multiple systems that are not correlated so that your equity would be subject to less drawdown and a smoother equity curve (up).

Jag

I trade 2 systems and then trade in 3 markets with both systems.