When I first started this journal a day like today would have been maddening. The 3bt identifies, often times, the elusive trend days. Although the pattern is not 100% it has other advantages like today - keping me away from danger. I wonder if we will hear from members that are MIA tonight. A lot of traders bank coin with action like this. Who knows? Maybe they will divulge a secret or two.
Johnny Rock's comeback
- Thread starter johnnyrock
- Start date
Contraction:
- check out the last six days
- not the prettiest triangle, but the market shows contraction, nonetheless
- 2 days were outside the bounds and formed tails in opposite directions before price settled back in
- waiting on another price push
- trade the 3bt on the 30' once the market seeks a new equilibrium
- BBs tightening, contraction
- 50 and 200 SMAs upward slope
- play the direction of the break
NQ has a 70pt range today. With money to be made on the upside, and downside. For me, it's an better than good trading day. That said, I might suggest you throw on an On Balance Volume indicator. I am a volume user and believer, and all my stuff includes volume. On Balance Volume indicator is no holy grail, not in the least, not even close, it's a frickin old school indicator! But it is available on almost every platform, out of the box. For volume-hobbyists, just notice the peaks and lows, and what type of trade opportunity exists at those points. Also look for divergences, bull and bear, of the indicator with price movement. The numbers the indicator throws off have no use, at least to me, other than for the creation of the indicator itself. The numbers themselves are in a context. It's a simple suggestion, and who knows, a volume hobbyist today, tomorrow, flat broke!!!
Trade On JohnnyRock.
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- volume-hobbyists, just notice the peaks and lows, and what type of tradeopportunity exists at those points.Alsolook for divergences
It was around 1:30 that I could see the 3bt was not going to set up. I pulled up the daily on USO, SPY and QQQ.
So, I will use that time as a point I would like to be able to switch gears and find other opportunities. Look how OBV led price. Since price was range bound in a bull flag, followed by a tight flaf, before that final push a limit order would not be out of the question. Price didn't move much, but that is beyond anyone's control. Price did close on the highs of that move. That fits in with the 3bt and playing a trend move. One I would not have seen otherwise. I may add this to the play book.
Entry on either flag would work.
Volume leads price, always, EXCEPT in low/very low volume situations, such as overnight, lunch (in context), etc. At those times, make coffee, not money.
- Farley pattern, "finger finder"
- shooting star/hammer
- at a key level (the hammer took out the low from the 22nd; breakout traders are at this level)
- OBV divergence on the 30'
- 30' OBV chart (barchart is delayed and I am doing this from my phone; freestockcharts.com offers real time charts if you are trading like a normal person
- 2 5' charts to show a realistic window for me to enter (I cannot get indicators on an intraday chart within this trading platform, so I have to papertrade with this handicap)
- this is for my own personal instruction on the 2nd play in my playbook; both plays offer a signal off the 30' chart (one is a range play and the other is a trend play)
- ask and ye shall receive
- give and it shall be given unto you
- principles