Iterative Refinement
- Thread starter Spydertrader
- Start date
Caught this nice move.
Entered at 1419. Reasons to enter
1. price reacted strongly to ma20
2. pennant FBO inside lateral movement.
One minute later YM made FTT.
Holding after that was easy.
1. clear breakout on 3 times previous volume (pace change to fast)
2. next bar increasing volume, increasing volatility just as expected. No signs of change.
3. next bar: decr volume and much less volatility. We anticipate change (no signal yet) but only 15 more minutes to go so exit at 1424.5 (+5.5)
Lately this stuff has been fun. (finally). I was also happy to make points in the morning, 6 months ago I would have been killed there, today I simply saw the change and acted. Well, if that is tradeable then every day is, so this is encouraging.
I need to be careful with laterals though. I do see the fbo's but when price goes back inside the lateral it's better (for me) to take profits at a point or so using limit order. Inside the lateral it is not wise to enter on increasing volume because change often is near and really some force is needed to take us out of it.
regards,
Ivo
ps. was I the only one who expected a point 3 down after the 14:25 bar..
<IMG SRC="http://www.elitetrader.com/vb/attachment.php?s=&postid=1922687">
Entered at 1419. Reasons to enter
1. price reacted strongly to ma20
2. pennant FBO inside lateral movement.
One minute later YM made FTT.
Holding after that was easy.
1. clear breakout on 3 times previous volume (pace change to fast)
2. next bar increasing volume, increasing volatility just as expected. No signs of change.
3. next bar: decr volume and much less volatility. We anticipate change (no signal yet) but only 15 more minutes to go so exit at 1424.5 (+5.5)
Lately this stuff has been fun. (finally). I was also happy to make points in the morning, 6 months ago I would have been killed there, today I simply saw the change and acted. Well, if that is tradeable then every day is, so this is encouraging.
I need to be careful with laterals though. I do see the fbo's but when price goes back inside the lateral it's better (for me) to take profits at a point or so using limit order. Inside the lateral it is not wise to enter on increasing volume because change often is near and really some force is needed to take us out of it.
regards,
Ivo
ps. was I the only one who expected a point 3 down after the 14:25 bar..
<IMG SRC="http://www.elitetrader.com/vb/attachment.php?s=&postid=1922687">
ES
Fun day.
I always try to draw all channels and always have all the "steepest possible" channels on the chart. But sometimes that becomes almost ridiculous with NT. Days like this really give you the opportunity to practice your patience. At about lunch I even had to stop drawing tapes for a while - it simply wasn't possible. I know there are some tools out there that help with this (that I can't use).
callmate, thanks for posting your chart and congrats to your success. Very encouraging
.
I always try to draw all channels and always have all the "steepest possible" channels on the chart. But sometimes that becomes almost ridiculous with NT. Days like this really give you the opportunity to practice your patience. At about lunch I even had to stop drawing tapes for a while - it simply wasn't possible. I know there are some tools out there that help with this (that I can't use).
callmate, thanks for posting your chart and congrats to your success. Very encouraging
.