Macd

Quote from AMT4SWA:

TGM,


No I have never read any of his books but I will now check it out...thanks for the info!


Todays MACD trades worked very well (payback for yesterdays scalp city chop).....

http://www.ttrader.com/mycharts/display.php?p=31186&u=cktrades&a=CK Trades&id=1303

http://www.ttrader.com/mycharts/display.php?p=31202&u=cktrades&a=CK Trades&id=1303

Days like this are very clean so when you get days like this you need to make some good hits.
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Yes, I daytrade the ER2. I used to be to many thousands a side in the ES but I moved to more volatile things. Now I just position trade the ES. I like something a little more volatile.

Dont buy Chick Goslins first book. Buy his second one. He published it himself and it is more more complete than the first book (which had a different publisher). He trades the 3 lines. You will get many good ideas. Best book I have read in years.

www.tradingdaybyday.com

FWIW, you can actually call him. His number is on his website. He actively trades out in La Jolla, CA. I near fell over when I first called the man a few years back to ask questions about his first book. He picked up the phone!! He is a good guy packed with decades of knowledge.
 
Quote from JanaSergeevna:

Also his latest book "Trading Day By Day" will be very good for you if you like indicators. An excellent book about trading anyway, even for those of us who don't.
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Jana,

Trading day by day is the best book I have read in years. I wish that I had it when I first started trading!
 
Quote from TGM:Jana,Trading day by day is the best book I have read in years. I wish that I had it when I first started trading!
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One of my best ever, also. It was not written when I started. When I see internet discussions of this book, though, I am often very disappointed because people imagine that it's a book presenting one simple, indicator-based trading "system", and if course it is _very_ much more than that!
 
Thanks for all the good info everyone!!!

Here was todays action for my MACD set-up......

http://www.ttrader.com/mycharts/display.php?p=31227&u=cktrades&a=CK Trades&id=1303

We had the Iran news give a real nice SHORT trade pre-market open and then the day was mostly chop city until the nice afternoon push.......

http://www.ttrader.com/mycharts/display.php?p=31228&u=cktrades&a=CK Trades&id=1303

When the market is tight range chop you have to have a way to still make your base hits so that you are not getting stopped out all day on non follow through entries (main reason why I take 50% of my position off at only +1.00 point and then another 25% off at +1.50 points.....they add up fast).
 
Eminitrader1,

Sorry I was rushed for time when I left my previous answer. As I stated in the prior posting I use a 1.5 to 2.0 pt stop right as I enter the trade and I will adjust this at times to fit within the context of recent price action S/R levels from the 5 minute chart that I am trading off of. If my entry is near a pivot/LOD/HOD then I try to enter at a price (when possible.....not all of the time) level which will have me as close to these type of S/R levels as possible. This way my stop can be on the other side of these most recent S/R levels in relation to my entry price.....lets look at this chart as an example.....

http://www.ttrader.com/mycharts/display.php?p=31228&u=cktrades&a=CK Trades&id=1303


OK....the SHORT trade entry at the 12:30 to 12:35 (CST) candle was filled at 1207.25 as we were equaling the low of the previous candle bottom and the MACD signal line was moving towards a "zero" line cross (flickering back and forth real time....until it does a final print at the close of each candle). Now even though the MACD line had not fully printed (across the "zero" line) during this entry candle (It did print a crossover when the candle finally completed....but I was already in the trade mid-candle....I had enough probability for an entry) I felt comfortable entering the trade as selling side volume was building up nice. This SHORT entry price of 1207.25 gave me a +1.25 point spread from my entry price to the high (minor recent pivot) of the 12:15 to 12:20 candle of 1208.50.........so now I placed a 1.75 point stop at the 1209.00 level (2 ticks above a recent price action S/R level of 1208.50....in this case a minor pivot). This put me in a trade with my stop beyond some recent price action S/R level.

Now for the quick reversal LONG during the 12:45 to 12:50 candle as the MACD had reversed and was now crossing the "zero" line upward. I entered this LONG during this candle as price was able to achieve the high of the previous candle high with a fill at 1207.25 (also this put my reverse with no loss for my remaining positions from the just prior SHORT trade that I was in). For this trade I have a previous recent S/R level of the lows for the 12:30 to 12:40 candles of 1206.25. This LONG trade entry price had me only 1 point away from support at 1206.25 that had held for 10 minutes (I'll take that) so in this case my stop was at 1.50 points set at the 1205.75 price level. Again here I try to plan an entry that will allow me to use very recent S/R as a barrier between my entry price and my stop. This is not always possible on every trade, but when I can find a way for a recent S/R level to back me up then I will take advantage of this (so you have to plan your entries as best you can).

These tight range areas we seem to get many days will kill you if you do not move quick with price action supported by some volume change. You also have to follow your indicators with this method because you can't pick and choose which "zero" line crosses to take or not take....because how do you know if you are skipping the "zero" line cross that will be the only decent break out runner for the day. What you have to do is learn to follow the behavior of your indicator so that it can be used like instruments in an aircraft during IFR. You can't see anything outside your window so you have to trust the instruments. You have to learn how to scan each of your indicators and package the information together to make adjustments to the flight path. Who cares if you have three "this way that way" trades in a row that are b/e or a few ticks loss.....when you are in the clouds stay tight on your flight path, and when you pop out of the clouds you will see the airport and get one of those nice long approaches to the runway. If you can hang in the chop, then you will really have some great trades when the price action breaks out.


BTW....I want to thank all the Iranian dam builders who set off construction explosives this early morning, which set me up with a nice early a.m. SHORT trade....thank you! :)
 
AMT4SWA,

Could you please tell me how you have your scaling set up on your volume display? I’m also using TradeStation and I have my Up and Down volume overlapped like you have pictured on your chart. I’m running into a problem where the scale at the right is only accurately showing the down volume while the up volume line doesn’t move much even though the volume is rising. Any help is greatly appreciated.
 
Loch....right click onto your volume lines and then when the format window pops up click on "scaling". Now set both as "user defined" and pick a volume level about 3000 contracts higher then your highest peak (on both up and down formats). Or you can delete both of them and then re-insert the two volume studies, set on the "scaling" part of the format window to "screen" for both....this should clear up your problem.


OK....here is todays trades so far....only two and I have a trail still on some of my remaining LONG positions (wow today really made up for those chop days....I like it!)..........

http://www.ttrader.com/mycharts/display.php?p=31254&u=cktrades&a=CK Trades&id=1303


BTW, I have placed where the 1.50 to 2.00 point stops were on these two trades to help those to see from the PM questions I am getting......My first entry SHORT was worked in with a cost basis of 1211.00 . My second trade was a LONG that was worked in with a cost basis of 1204.50 (which then gave me a stop at 2.00 points BEYOND the LOD by one tick).
 
AMT4SWA, Thanks for the help!

I really appreciate you taking the time to post your trades and charts. I find them very helpful. Could you explain why you decided to go long when you did?
 
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