I'm pointing out that you're not reversing at the extreme but entering a short long after. Therefore you have to expect some recoil and even an adverse incursion. When this popped up, you exited. That's why I suggest not trading chop at all.
Ghost of If You Can Draw A Straight Line
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I'm pointing out that you're not reversing at the extreme but entering a short long after. Therefore you have to expect some recoil and even an adverse incursion. When this popped up, you exited. That's why I suggest not trading chop at all.
Thanks, now I get it.
I should also reiterate that this is not a rigid "system", now even less so now that AMT has been introduced into it. The trader's own preferences will determine his success as much as how well he implements the approach. I, for example, as I made clear this morning, do not trade chop unless I somehow wind up in it unintentionally. So, after that short at 93, I wasn't eager to keep futzing with it since activity was so lean. By the time it picked up, I was gone. But that's my day. Somebody who stuck around may have had better results.
However, going long during all this, or jumping out with 10pts due to fear is not a preference; it's a psychological block that must be removed. Otherwise there's no reason to expect any more success with this approach than with any other that's been tried and tossed.
However, going long during all this, or jumping out with 10pts due to fear is not a preference; it's a psychological block that must be removed. Otherwise there's no reason to expect any more success with this approach than with any other that's been tried and tossed.
Looking for the chat link, but can't find it? Secret?
No, same as it's always been: stinto.net/en/chat.htm?refId=rnylr#
I would guess the exit was at 77-ish per the posted rules - if one can call them that - and I'm not even that familiar with this. The logic behind the entry is also pretty clear.
I'm just sayin' ... it's all in the journal.
I would guess the exit was at 77-ish per the posted rules - if one can call them that - and I'm not even that familiar with this. The logic behind the entry is also pretty clear.
I'm just sayin' ... it's all in the journal.
Cool, thanks.
If one is extremely generous with these longer-term trendlines, both the ES and NQ are sitting on them. The fact that they both hit the brakes when reaching these levels and sat there for hours until the close, and after, suggests that this may be the case. If so, then the line of least resistance is up, either back to the mean of the trend channel or even an attempt at the upper limit. If so, the mean or the upper limit -- or a lower high resulting from such an attempt -- would be excellent opportunities for shorts.
If, however, one is not so generous with these lines, they both have been broken, and the line of least resistance is down. However, markets don't just fall without some last gasp effort to save the bacon. The NQ has not yet made even a feeble attempt to reach the last swing high, much less reach the upper limit of its trend channel. In '00, it took the Naz 10 days to make that attempt, and after the initial drop, it traded sideways for five months before beginning the next phase of the downtrend.
All of which is a reminder to approach this without bias. The market will tell you which way it's going, but you won't hear it if you're not listening, much less if you have your fingers in your ears and are shouting la la la.
If, however, one is not so generous with these lines, they both have been broken, and the line of least resistance is down. However, markets don't just fall without some last gasp effort to save the bacon. The NQ has not yet made even a feeble attempt to reach the last swing high, much less reach the upper limit of its trend channel. In '00, it took the Naz 10 days to make that attempt, and after the initial drop, it traded sideways for five months before beginning the next phase of the downtrend.
All of which is a reminder to approach this without bias. The market will tell you which way it's going, but you won't hear it if you're not listening, much less if you have your fingers in your ears and are shouting la la la.
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