ES Journal Archive (2011)

[Laissez Faire]

Trend line broken and TICK weakening. Breaching the lows now and it`s gap fill time. At least half of it, I hope.

Could be a double bottom as well. Re-test of the break around 64-66. That is normal behavior, although not preferred to endure for those who shorted the break as one tends to get nervous and puke just before the break.

 

[macho grande]

Quote from JoshDance:

short 64.75

nicely done (so far)

 

[JoshDance]

Quote from JoshDance:

out another part 63, holding rest stop 65.25

closed rest at 62.25, will look to re-enter short if we break below if it's convincing

 

[tomahawk]

Quote from Picaso:

Does anyone here wait for the close of the bar to enter/exit trades or you only use price (but not time) levels?

Thank you.

Levels. Whether price reaches a certain level a couple seconds before or a couple seconds after a 5-minute marker is not going to make big money change it's view on where value is.

 

[JoshDance]

Quote from tomahawk:

Levels. Whether price reaches a certain level a couple seconds before or a couple seconds after a 5-minute marker is not going to make big money change it's view on where value is.

Big money often uses bots, which look at breaks of major timeframe highs and lows, such as 60m bars, 5m bars, daily bars, and so on. The algos don't care about value, and it's evident when you watch a 5 minute chart, the average day trader's anchor chart, how bots will buy or sell to finish the close of a bar near the high or low, then run a few more contracts to break the bar, trapping breakout traders, and then reversing. Even today you can see evidence of this.

 

[macho grande]

Quote from JoshDance:

Big money often uses bots, which look at breaks of major timeframe highs and lows, such as 60m bars, 5m bars, daily bars, and so on. The algos don't care about value, and it's evident when you watch a 5 minute chart, the average day trader's anchor chart, how bots will buy or sell to finish the close of a bar near the high or low, then run a few more contracts to break the bar, trapping breakout traders, and then reversing. Even today you can see evidence of this.

i hate bots for other reasons but don't forget they are nothing more than the product of (fallible) human intellect.
they are reactionary

 

[Laissez Faire]

Still below the 50%, but double bottom for now.

I can see a ret-test of the trend line break lining up with a kiss of the 20-EMA at 65.

Anyone?

 

[tomahawk]

Quote from JoshDance:

Big money often uses bots, which look at breaks of major timeframe highs and lows, such as 60m bars, 5m bars, daily bars, and so on. The algos don't care about value, and it's evident when you watch a 5 minute chart, the average day trader's anchor chart, how bots will buy or sell to finish the close of a bar near the high or low, then run a few more contracts to break the bar, trapping breakout traders, and then reversing. Even today you can see evidence of this.

And many times those reversals reverse (as in today's 5-min bar #3), when it hasn't yet reached the value level, e.g. today @ 62.25.

 

[JoshDance]

short 65

 

[macho grande]

L @1264.50