Quote from Jander:
I definitely get the entry, but dont understand some of the holds and especially the exit. In any event, that trade should provide some more dialogue, especially if you want to post some more in the future (just throwin that out there 
)
OK.
First off. Thanks for the kind words everyone, but really, this isn't about my trade, so lets keep the focus exactly where it needs to be - on 'seeing' the signals provided by the market.
First thing everyone needs to do is draw a nice big lateral starting at 12:50 [close of] ES bar. Note how
all the bar closes fall within this lateral until the BO at 13:30 [close of] ES Bar.
Now, note the ES from 10:00 AM onward. We see a
down traverse followed by an
up traverse situated inside an up
channel. Guess what has to happen when we form a down channel? A down traverse followed by an up traverse, right?
Well,
almost right.
We all know Lateral movement often forms a channel traverse. In these cases, we term the phenomenon a LTR (Left to Right Traverse). While we expect the down traverse to be followed by an up traverse, we can 'see' the
Lateral Movement formed (beginning at 12:50) and
know this LTR will create
continuation downward.
OK. So, there is the first part.
Now, look at 13:45 [close of] ES bar. Jander thinks he would have jumped ship here. Why? We have seen
many times how when a channel widens we often have to build traverses within it for Price to head back to the other side. This channel is certainly wide enough for us to anticipate that. As such, we will need another
down traverse before we can build an up traverse to take us back across the channel.
As a result, 13:45 becomes 'Point Two to Point Three' of our traverse - an easy hold. the 14:00 [Close of] ES Bar presents another change signal, but again what haven't we seen yet on this long road down? A flaw perhaps? Since I still see Price within the Right Trend Line, I have no worries. I can always exit late if price exits the RTL on increasing black volume. After all its been a nice run so far. After this change signal, the market confirms with a pennent. Nice. Now we have lateral movement. Draw in another lateral here. Note the closes once again all line up. Price breaks the RTL on
decreasing black (that ain't good for a long is it?) and forms an IBGS.
The market provides another round of increasing red for good measure. Time to look for a spot to reverse long. Since the YM leads the ES, we wait for the YM to signal, and nearly 2.5 hours after the trade began, we bank our profits.
Again, I don't like to post blotters anymore because it puts the focus on dollars, rather than learning to 'see' continuation or change. Hopefully, the above explanation provides some insight into my thinking.
HTH
- Spydertrader
