House of If You Can Draw A Straight Line

Eddiemorra · Jan 2, 2015

Could possibly rally here.
LOLR is down, though.

fortydraws · Jan 2, 2015

Eddiemorra said:
Could possibly rally here.
LOLR is down, though.

My last long NQ was 12/26 entered sometime after 12 noon. 12/29 I saw nothing that made me want a trade. Been shorting 12/30-31 & today. I'm flat and probably done for the day, but right now at 2017 it looks like a short to me. edit: 4217 lol

bmwhendrix · Jan 2, 2015

dbphoenix said:
Maybe they'll be able to understand that today's setup was virtually the same as yesterday's.

Or maybe not.

Yes it was very similar, if you knew where to look as we did....beforehand.

The 60 min. was just like reading a book with a predictable plot. Good guy gets the girl.

dbphoenix · Jan 2, 2015

bmwhendrix said:
Yes it was very similar, if you knew where to look as we did....beforehand.

I don't know about the beforehand part with regard to the level at which price rolled over. Yes, it was at Tuesday's low, which matched the low of the 23rd, but I've never been convinced of this notion of "resistance". On the other hand, maybe somebody saw something I didn't.

In any case, there are only 75 more pts to go before we reach the mean of this channel.

fortydraws · Jan 2, 2015

I had Tuesday's low marked on my chart as an area to watch. I would never just fire off a trade because price reached a previous day's low, but when it hit 72.75 and snatched right back to 71.25, and then dragged along that 71.75 without a buyer appearing any higher than 72.25, it was a decent short on a stop at 71 with a 2 point stop loss at 73. That was the first LL of the session that I could see, and what made it important to me is that it happened a level that seemed significant for the past week or so, imo, of course.

I would be covering at least half of a re-short from 4217 here in 1-3's, imo

eminiman414 · Jan 2, 2015

Don't know if anyone was looking at this but the TICKQ went straight south right from the open as well.

k p · Jan 2, 2015

fortydraws said:
I had Tuesday's low marked on my chart as an area to watch. I would never just fire off a trade because price reached a previous day's low, but when it hit 72.75 and snatched right back to 71.25, and then dragged along that 71.75 without a buyer appearing any higher than 72.25, it was a decent short on a stop at 71 with a 2 point stop loss at 73. That was the first LL of the session that I could see, and what made it important to me is that it happened a level that seemed significant for the past week or so, imo, of course.

I would be covering at least half of a re-short from 4217 here in 1-3's, imo

Hi fortydraws... just wanted to let you know I've learned lots from what you're doing and hope you post some more stuff. I've taken the liberty of annotating what you saw on a chart and just posted it to my journal as I don't want to muddy Db's thread here. I love how you're providing the rationale for your trades along with where you're getting in and your stop.

http://www.elitetrader.com/et/index...via-price-action.281995/page-148#post-4067223

dbphoenix · Jan 2, 2015

It's worth also keeping in mind that these levels on a daily chart may be more important because more people see them. Or at least important people.

Gringo · Jan 2, 2015

dbphoenix said:
It's worth also keeping in mind that these levels on a daily chart may be more important because more people see them. Or at least important people.

Thank you Db. I always knew you thought I was important!

fortydraws · Jan 2, 2015

dbphoenix said:
It's worth also keeping in mind that these levels on a daily chart may be more important because more people see them. Or at least important people.

I am not a statistical person I know some people are, but it seems to me that better than half of my trades are initiated at a recent prior daily high or daily low. These trades may take the form of a reversal, or a pullback after a breakout, which in my uneducated mind is itself a reversal of sorts. My set up is always the same, what differs is what price has done at one of the levels I decided I'd be watching for trade.

Probably as a carry over from my stock trading, I have also found that on gap days especially, it pays to keep an eye on where the $NDX itself is relative to the previous day's 4PM Eastern close. That closing level, imo, often attracts interest and can become a support or resistance price level.

All of this is just my opinion.