Quote from ESSTrader:
Hi Donkee, thanks for sharing on this thread. I have 3 questions if you don't mind.
1. When you take the Anti trade do you still take the next histogram pullback or ignore it and wait for the next cross of the slow line?
This is a little tricky, as my goal is to get into trades as early in the swing as possible. For "day trade" swings, after 2 or 3 pull backs (anti set ups) you are probably pretty far along in that swing and those trades get riskier. You'll see the 3/10 start to develop divergences in its' momentum. At that point, I just sit and wait for the new trend.
The first pull back in a new swing is always going to be the entry with the largest potential. The ideal signal would be a 1st Cross or 3/10 histogram divergences that triggers an entry in the 50%-62% pullback area.
Look at yesterdays 1000 tick chart between 9:50-10:10a. The pull back was right at the 62% area and the 10:08 price got to within 3 ticks of testing the 9:56a pullback area, but the 3/10 histograms couldn't even get below the zero line. That was warning me that momentum to the downside might be exhausted. At that point, I knew there was a decent chance that if the 3/10 started to move up, it was worth taking a long entry once we cleared the PP at 914. That was purely from reading 3/10 momentum and looking at the divergences in the 50%-62% retracement area.
Quote from ESSTrader:
2. Do you ever re-enter if you've gotten stopped out and the histogram starts to rollover again?
Yes and yes I've had two losers in a row doing that. It's just part of trading.
Quote from ESSTrader:
3. If the first cross and histogram pullback happened before the open, would you wait for a new cross or just take the first histogram pullback ignoring the one that happened in the pre?
As you log the times of your trades, you'll probaly come to the conclusion that the best trades happen in the first 90 minutes and the last 90 minutes. If the market starts out strong in one direction, then you want to look for a reason to get into a trade after the first pull back during market hours. It can be tricky and you'll have some losers.
Yesterday the ES moved 11 handles up from its' over night low to the open. There was a 1st cross buy right after the open and there was nothing wrong with taking it. It was a loser.
As you watch the ES you'll start to really be reluctant to buy pullbacks that are just too short in the context of the swing. A 2 point pull back in a 11 point swing is just not a high percentage entry. Look for pull backs that get in that 50%-62% range.
Quote from ESSTrader:
Thanks again for helping getting ppl on the right track.
ESSTrader
I'm glad it has been of help to some. There will be lots of losing and scratch trades. Just grade your entries and exits after the market each day. As long as your grades are improving, you're on the right track and you are giving yourself a chance to make some money. Start out small and once you are consistant, bump up your size.
Good Luck!
