IN THIS THREAD: IronFist learns (the elusive) PRICE ACTION

[ammo]

mand,there is a lot of good stuff coming out here ,iron is not the only one gleaning a bit of info here

 

[fearless9]

PA in my opinion is simply the momentum and velocity of price on a tic by tic basis.

If you relate it to a bar (which is your creation, not the markets) then that is your strategy, not PA of the market.

Someone (Anek I think, said a trend started with two HH/HL or LL/LH.
Well apply that belief to ES and you will be finished before you even started.

Dog tucker is what your account will turn into.

IMO everything you need to know about ES is covered within momentum and velocity.
I say ES because it is all I know about.

regards
f9

 

[ammo]

didnt see tw's post but if someone offered to mento,you gotta take it,the smartest thing your doing right now IF is paper trading

 

[swapanda]

Quote from fearless9:

PA in my opinion is simply the momentum and velocity of price on a tic by tic basis.

If you relate it to a bar (which is your creation, not the markets) then that is your strategy, not PA of the market.

IMO everything you need to know about ES is covered within momentum and velocity.
I say ES because it is all I know about.

regards
f9

Do you actually judge momentum and velocity from the gradient of one-tick charts?

All this discussion and advice is helpful not just for IF, much appreciated.

 

[IronFist]

Quote from bilbod:

The interest rate futures are frequently very boring, like watching paint dry.

The vid's I saw were during lunchtime and things can get pretty slow then.

Bill

I should have specified; I was talking about the YM DOM.

 

[IronFist]

Quote from bilbod:

Hello IF,

Let me give you a few practical tips for trading PA.

1. Determine the direction of the trend and only trade with it. (don't trade in congestion, don't trade countertrend)

What's the best method to do that? Some people say looking for HH/HL or LH/LL. Others say to use a MA of [insert number] periods.

2. The earlier in a trend you enter a trade, the greater the chances of success and vice versa. Prices tend to move in waves and after 3 waves in 1 direction, you should be expecting a bigger than average PB or an outright reversal of prices.

what's a PB?

5. Trade at least 2 contracts. Take one off as a scalp, move stop to BE+1, and keep the rest on to try and catch a runner. That way you will get paid on most trades and still give yourself the opportunity to catch a bigger move.

My live futures account has ~ $10k and 2 contracts is too much risk (unless I was to use super tight stops, which is impossible with the YM because it has 20 point "noise" fluctuations). I understand scaling out but 2 contracts = every loss is twice as big, so winners HAVE to be twice as big or you have negative expectancy. Scaling out typically does not promote winners being twice as big (in my backtesting... granted, my backtesting was based on entries and exits being based on the slope of a relatively fast MA, so that might affect it).

 

[cashmoney69]

a simple trade using nothing more than a support line, resistance line, and an entry line

reb
green
blue (entry)

 

[cashmoney69]

here is usd/cad on a "stop and reverse" play... this is when the highs and lows of the previous candle are broken, and a trade is taken. the stop is then placed at the lows of the current bar, or the one before it, whichever one is longer.

i know the file says eurusd, but its not.

 

[IronFist]

For anyone doubting by "YM has 20 points noise" comment, look at the chart that JUST happened.

This is a 2 minute OEC chart. Price jumped down over 20 ticks instantly. There was no smooth fill on the way down. It JUMPED down. Check the order flow.

I managed to grab 2 quick screens of it. Notice the candle on the right in both cases.

edit - holy crap what is happening now?! It's up over 100 ticks in 2 minutes :eek: :eek: :eek: :eek: :eek:

 

[cipher4d]

Yeah but this is FOMC week... chop/noise is expected. Rates man, RATES!!