Quote from marketsurfer:
I fully understand the scalability issue.
However, I would like to observe you trade in real time with no other information than a chart. You do realize that is incredibly rare and it would be quite impressive to observe it live. This is why I keep pushing the TA brigade here--- I want it to be true but my experience and influencers have led me the other way.
surf
You'll just have to trust that I trade this way, because I'm not on display, I'm trading for a living.
Pull up a 5-min and 1-min chart of CL and annotate these trades. You'll see how intraday scalpers use S/R and pure price action to extract bits of moves from the active little instruments like CL:
Preparation: Prior to the crude oil pit open I identify a channeling down trend in the overnight session and draw support and resistance lines, connecting the swing highs from the overnight session and placing a parallel channel line across the latest lower low (8:20am ET).
I notice that the last new low came out of narrow range consolidation contained by the 7:45 bar. The low of that consolidation range is 106.24. If the down trending channel continues to hold, that price level just about coincides with the down trend line I drew connecting the overnight swing highs. That will be key resistance.
Trading begins: Just before the open, I place a sell stop to trade to the short side off the 1-min chart (1-min with-trend continuation for a test of the previous low.)
The pit session opens and price makes a bullish run up right through the significantly lower high that printed during the 8:40 ET bar. That was a surprise. I realize there is very key resistance overhead and since there was no pause or pullback for me to get long in that opening run, I place an offer to sell the upper trend line which happens to coincide with the narrow range consolidation low described previously. This is an anticipatory trade; Iâm using technical price analysis involving
confluence of two identical resistance levels to enter a low risk trade (13 tick stop loss) in the direction of the overall trend (which is still down until that channel breaks out).
My offer is taken and price immediately turns. Because price ran non-stop to that upper channel, I assume the pullback to the lower channel line will be interrupted by defense at every level, so I place a hard target just above the round number for a 21-tick profit.
I see a 1-min with-trend continuation pattern setting up for a long trade, but price hasnât broken out of the down trending channel yet, so I do not trade this
pattern by itself. I only trade this pattern in the
context of a well-defined trend, which at this point is still down.
By the close of the 9:11 bar on the 1-min chart, a 1-2-3 reversal pattern off that upper trend line is in play and I thatâs my signal to get short. Price comes within 1 tick of my offer and stalls. I pay a bit extra to get in at 106.12 because the R:R still fits within my plan: My risk will be 13 ticks and my hard target will be 15 ticks, with a bid to take profit placed 1 tick above the swing high that broke out during the opening run, the break of the 8:40 bar high on the 5-min chart.
My bid is lifted almost to the tick which alerts me to calculate the R:R of a 1-min long entry from that level. I see immediately that thereâs congestion between camps, so I wait for clarity. Despite the strength of the run up from the open, the larger channel could still be very much in play, meaning more short setups coming.
The price action of the 9:20 bar on the 1-min chart clears the congestion and I look for a long entry setup. The close of the 9:22 bar tells me further pullback will be unlikely if that barâs high breaks, so I place a buy stop there to position long, looking for a test of, and likely break of, the upper trend line. The trend line breaks, as does the previous swing high, but price stops short of breaking through the 106.35 R from pre-market. I give price a couple chances to try again and end up taking a 10-tick scalp.
Price then pulls back to my entry price during the 9:29 bar and closes with that price as the low. This level is approximately a pullback to that previous down trend line resistance (previous R becomes S), and I jump in long again at 106.21. I have no target calculated other than âa break of 106.35â in my head and I quickly draw a 1-min channel across the 106.32 high and it looks like price should hit 106.39. I place a 20-tick hard target and prepare to take a scalperâs profit if it doesnât get there. My offer is taken and I call it a day.
Now I've revealed all the price action trading secrets of the magic price action gurus. There's big edges in them there price bars. Take what you will and enjoy!
