I need help with understanding momentum

[Sprout]

my goodness! you are reading selectively.

I started trading when there were hardly any charts!!!

In those days, there were no computers for home use.
Charts had to be manually plotted on paper.
and if you want to add a moving average say MA10 to the chart,
then every night you use a calculator to calculate

(d-1 + d-2 + d-3 ...... d-10)/10

I used to plot ~ 10 to 20 stocks - very labor intensive!

If my memory is correct,
RSI, envelopes, stochastics, ADX, MACD .... were not invented.

I don't think you can buy this graph paper anymore.

OG is da house! Respect!

 

[Sprout]

I trade of the 5 min chart but also observe the 30 min chart. Only trade if both charts are moving to the same direction.

I had traded similarly. My results improved as I went higher in TF for directional bias, entries on the fastest and managed the trade in a sweet spot between the two.

In addition, mapping out when not to trade improved results as well.

 

[easymon1]

OG is da house! Respect!

You ever draw charts by hand?

 

[easymon1]

I had traded similarly. My results improved as I went higher in TF for directional bias, entries on the fastest and managed the trade in a sweet spot between the two.

In addition, mapping out when not to trade improved results as well.

I saw a guy do that once, linked...
https://www.elitetrader.com/et/threads/copper.356233/page-7#post-5656877

 

[Sprout]

You ever draw charts by hand?

I create models by hand, they are more like schematics and mindmaps. They are like artifacts of my understanding of different market perspectives. I like OG, time tested sources rather than new pubs.

This is said with the exception of Market/Volume Profiling and Footprint charts. Just dug deeper into this topic this past year with TradingRiot (intro) and Axia’s (in-depth) content. It’s good stuff but takes diligence to digest, integrate and implement.

 

[kroxobor]

I have a full time job and usually scalp ES pre-market during EU open. I'm finding it very hard to distinguish between momentum vs sideways.

During my search on ET for topics on momentum I come across a post by @QTrader20
"My only 'secret' to maintain extremely high winrate day in, day out for years (I posted many daily PnL screenshots here on ET many months ago) is by taking trades when PA shows momentum."

How does Price Action show momentum ?

Fast, unabated price movement with little and short pullbacks during the move. Trading volume and tick volume grows as well during this time.

 

[murray t turtle]

FWIW, I trade ES US hours everyday for years.

Price will stay in a range until there is a big enough imbalance. The imbalance impact is not linear, but more geometric. The "key" is to see when the threshold is reached AND maintained.

So for example, a 3 point move in under a minute is OK, but 5 points is more significant. Add to that the highs/lows keep getting higher/lower (Confirming). Time of day is a big factor.

The main problem though is it can be "too late" and you "miss" the fat part of the move. Then on the other hand, you get in "early", but it reverses.

Bottom line, there are sweets spots, and the management of the Exits are a major part of the resulting P/L. I.e. every entry should have the exit road maps based on R:R and price action after entry.

But full disclosure, I do not trade like this anymore. IMO there are too many ways for it to mess you up manually trading, and auto-trading, shows there are better ways with the same or better risk profiles.

%%
I still enjoy what Salam Abraham's Grandad warned him, about leveraged stuff like that;
''congrats[sarcasm]\ of all the ways to lose money \you chose the fastest''
Some made it work; even fewer learned trading starting with that..........................

 

[easymon1]

%%
I still enjoy what Salam Abraham's Grandad warned him, about leveraged stuff like that;
''congrats[sarcasm]\ of all the ways to lose money \you chose the fastest''
Some made it work; even fewer learned trading starting with that..........................

It is mos def doable.
Do your preparation and homework, Have a business plan.
Like Missy 'Misdemeanor' Elliott says in "Work It"...
Is it worth it, let me work it
And find out how hard I gotta work you
I put my thing down, flip it and reverse it
If it's 9 to 5 or shakin' your ass
Ain't no shame, ladies, do your thing
Just make sure you ahead of the game

If you got a big ***, let me search you
And find out how hard I gotta work you

If you can't do stats with a rules based system that supports your business
then take Missy's advice, Careful wit da Futures Trades, Do Not Get Levered Up with no place to go. Know your adversary. As Tom Waits warns in Spare Parts 1, "The hawk had his whole family out there in the wind. And he got a message for you to beware. Kicking your ass in, in a cold-blooded fashion, Dishing out more than a good man can bear..."
Don't believe it? Long Popcorn.

net worth Salam Abraham's Grandad - https://www.dogpile.com/serp?q=net+worth++Salam+Abraham's+Grandad

 

[murray t turtle]

[partial UOTE="easymon1, post: 5657474, member: 82119"]It is mos def doable.
Do your preparation and homework, Have a business plan.
......... Careful wit da Futures Trades, Do Not Get Levered Up with no place to go. Know your adversary. As Tom Waits warns in Spare Parts 1, "The hawk had his whole family out there in the wind. And he got a message for you[ to beware. ]
Don't believe it? Long Popcorn.......
[/QUOTE]
A Hawk is like a system/ he or she could do things ,even the better + best discretionary trader could not do .
A hawk tried to get one of my pet hens, when i kept those hens. She saw the hawk dive +the hen turned around a stump= victory for my pet hen. I like the way those hawks scream + keep most of the squirrels out of my orchard Good homegrown red + green apples for lunch.
Aussie futs trader said intraday is ''where the market does not want to go'' LOL .Good points; +good close yesterday...............................

 

[rb7]

my goodness! you are reading selectively.

I started trading when there were hardly any charts!!!

In those days, there were no computers for home use.
Charts had to be manually plotted on paper.
and if you want to add a moving average say MA10 to the chart,
then every night you use a calculator to calculate

(d-1 + d-2 + d-3 ...... d-10)/10

I used to plot ~ 10 to 20 stocks - very labor intensive!

If my memory is correct,
RSI, envelopes, stochastics, ADX, MACD .... were not invented.

I don't think you can buy this graph paper anymore.

LOL...I still have on of those pads with that type of paper....