Matcha's Dow E-mini Journal

Nice volatile day to trade. I still didn’t get used to accept the great opportunities when they are in front of me.

The 80 Pts of the premarket Gap down and the up trend line broke set my mind to the go short at the opening, before 7:00 news though. I though that this gap could be one of those breakaway gap that reverse the major trend. Or at least set a great amount of pullback in bullish trend. So I was looking for any short set up! But of course when market opens, there isn’t a short set up…. Luckily, there isn’t. Then I look at the 60 Min chart, this is the first time that price formed the 20EMA gap, the bull is still in control.
7:30 a perfect perfect buy set up in front of me, I didn’t take. Still thinking shorting….

After market reached to YTD’s major resistant level. It formed a D/T. the channeling down in the doldrums. Took a long position while market made a higher low at support level. Watching candle flip up and down for 30 min, then a large red candle came down took my stop! -6Pts

Then market started to collapse. 2 large bar later. Market stalled at mid point pivot point, also a S level and VWAP level. Learned that if price doesn’t want to hold at VWAP, it wants to trade under the VWAP, better do shorts other than long. More sellers push price below average daily traded price. Besides the market is clearly forming a break down set up. So I took a short, entry one tick below the pause bar. And it worked this time.

TRADE A: short at break down. Pause bar.
21Pts, never seen price came down so climatic, it totally reversed the morning run up gap fill. I stopped out at 21 pts a large doji came back up. Then I was looking for price retrace back to R2 level for a 2nd leg down. But the retracement never happened. All the minor retracements on 2 min are so shallow. I couldn’t get in with such a steep selloff…Price continues fell down and tested today’s low…

I didn’t take very good advantage of the 2 big nice trends!

Today’s PnL: $70, 2 trades, 50%winrate
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Quote from Matcha:

Nice volatile day to trade. I still didn’t get used to accept the great opportunities when they are in front of me.

....

I didn’t take very good advantage of the 2 big nice trends!

Today’s PnL: $70, 2 trades, 50%winrate

Hi Matcha,

It's a winning day that counts. :)

My trading day was frustrating. My PC froze at the worst time. I was about to take profit to close a trade and found out I couldn't enter anything. By the time I reset the PC, the trade was stopped out at a a max loss of my protective stop! :mad:

At around 14:10 e.t., I had a short trade and having a second thought, closed out the trade at b/e immediately prior to the big drop-off at 14:36 e.t.
missing the big "sell off". I, too have to learn to "accept the great opportunities when they are in front of me".

Oh! Not sure how everyone spends their time during the RTH. You might have already seen this. I recently found this daytrading online radio pretty cool and also educational. The host trades ES mini futures and also individual stocks. He gives real-time analysis of the market with some good charting and he plays some good music too! http://www.daytradingradio.com/ or http://www.livestream.com/daytraderrockstar


More great setups will be in front of YOU tomorrow!

--po
 
Quote from ~~~:

Dear Po..

The Hardest part of trading is Not the technical analysis coz after some trials & errors ...an intelligent engineer/trader will figure out & do ok in technical analysis...The Hardest part of trading is actually learning how to Master the Emotion! If you can Master your Emotion, You are at a Higher Level !!!

The character of XiaoLongNui is Witty and Smart ... she's also Super Cool and Calm even in the worst dire situations ..she remains calm & cool ..she only has emotion/feelings for Yang Guo :)... that's why i told you b4... put/pour all your emotions into a cat or a dog or people or flower but when trading .. You MUST control your emotions!!!

Now Yang Guo is an orphan who's full of emotions and hatred, extreme anger etc ... he's bullied by others since a little kid ... after he met and learnt from XiaLongNui .. he grown up to be a mature brave pugilist who can control his emotions very well ( well... except ..of coz he can't control his loving feelings toward XiaLongNui la ):D XioLongNui and Yang Guo are very special unconventional, anti-tradition couple! They think "Outside of a Box'
.. In trading , we must also think "Outside of a Box" ...

Sis was an intern, an apprentice under a Sifu and now i am the mentor of my apprentices in asia ... all are very intelligent apprentices but i can tell who's going to be very, very successful as a trader and who's going to fail as a trader ... from their characters and egos and attitudes ... :)

i know You & Matcha are going to be CP ... must go thru some high heat & pressure to produce beautiful sparkling diamond LOL :) :)

Dear Sis ~~~,

Thank you! Now I know who XiaLongNui and Yang Guo are. :)

You are way cool! Well said regarding the hardest part of trading is to master and control my emotions. It is the most challenging part of my learning. It is something totally unscientific and very hard to quantify. I know I have to embrace this high heat and pressure to transform myself. Otherwise, I will never become CP.

--po
 
Quote from Bolimomo:

Matcha and tlow:

I feel that candlestick and bar-by-bar analysis are so overrated.

Many discounted, or totally dismissed, any kind of indicators on a chart. Quoting that all indicators lag price. True, price action is important. But indicators, when used well, can also help us decide on and time an entry.

From you guys' charts... not sure if you use any kind of momentum indicator at all. I know Matcha uses RSI (and previously stochastics). That's good.

Enclosed is a chart on the afternoon price action around the Fed announcement. Momentum indicators can help you either play a reversal or avoid chasing a late move. (The two on the chart are proprietary ones. But you can find some "squeeze" indicators on the Internet.)

...

May be practice to interpret what the momentum indicators are telling you on the quality of the move and the stage of the move.

Hi Boli,

I am glad that you like indicators.

I agree with you - "indicators, when used well, can help us decide on and time an entry".

I sometimes feel the same about candlestick and bar-by-bar analysis are so overrated because they are so over my head. I still have a long way to go to master them.

I do use momentum indicator on all my charts. I used to use more indicators but now only keep the stochastic. I like what you said about "Momentum indicators can help you either play a reversal or avoid chasing a late move."

Thanks.

--po
 
Quote from PatientOperator:


I do use momentum indicator on all my charts. I used to use more indicators but now only keep the stochastic. I like what you said about "Momentum indicators can help you either play a reversal or avoid chasing a late move."

PO:

Different momentum oscillators react to price moves at different speeds. Stochastics is the quickest. It can be a blessing; it can be a curse. If you follow it immediately to trade you will end up having lots of whipsaws. If you follow something that responds slowly you would miss a good portion of the run. It all depends on whether you want to scalp for a few minutes or ride a swing. I observe a few of them. So of them would give me the heads up and some of them give me the direction bias.

Here is my observation on the reaction speeds with the different momentum oscillators, from the fastest to the slowest:

1. Stochastics
2. CCI
3. RSI
4. Squeeze (based on Bollinger Bands or CCI)
5. Price Oscillator
 
Quote from Bolimomo:

PO:

Different momentum oscillators react to price moves at different speeds. Stochastics is the quickest. It can be a blessing; it can be a curse. If you follow it immediately to trade you will end up having lots of whipsaws. If you follow something that responds slowly you would miss a good portion of the run. It all depends on whether you want to scalp for a few minutes or ride a swing. I observe a few of them. So of them would give me the heads up and some of them give me the direction bias.

Here is my observation on the reaction speeds with the different momentum oscillators, from the fastest to the slowest:

1. Stochastics
2. CCI
3. RSI
4. Squeeze (based on Bollinger Bands or CCI)
5. Price Oscillator

Hi Boli,

Thanks for the advice on momentum oscillators. I agree with you that Stochastic is very sensitive especially in the smaller timeframe like 1 or 2 minute chart. I look at all the stochastic on higher timeframess, 5 min, 15 minutes and 30 minutes. I try to catch a wave in the context of a higher timeframe and "pinpoint" my entries using a smaller timeframe to identify a pullback. This way I have the indicators to guide me to trade with the trend (at a higher timeframe) and wait for a pullback for entry in the smaller timeframe. My biggest weakness is to also look at the Stochastic in the smaller timeframe for exit. This often leads me to limit my potential profits too soon.

--po
 
Quote from PatientOperator:

Hi Matcha,

It's a winning day that counts. :)

My trading day was frustrating. My PC froze at the worst time. I was about to take profit to close a trade and found out I couldn't enter anything. By the time I reset the PC, the trade was stopped out at a a max loss of my protective stop! :mad:

At around 14:10 e.t., I had a short trade and having a second thought, closed out the trade at b/e immediately prior to the big drop-off at 14:36 e.t.
missing the big "sell off". I, too have to learn to "accept the great opportunities when they are in front of me".

......


More great setups will be in front of YOU tomorrow!

--po

sorry to hear that! It happened to me once. Luckily I was able to get out immediately before my software went really dead... So my loss was small....

Got to always have a broker's number next to the PC too, just in case...

it was a great website! i will look at it tomorrow!

Great trading tomorrow!
 
Quote from PatientOperator:

Dear Sis ~~~,

Thank you! Now I know who XiaLongNui and Yang Guo are. :)

You are way cool! Well said regarding the hardest part of trading is to master and control my emotions. It is the most challenging part of my learning. It is something totally unscientific and very hard to quantify. I know I have to embrace this high heat and pressure to transform myself. Otherwise, I will never become CP.

--po

Sorry PO!!! sis just assumed that you'd read "The Return of the Condor Heroes" - the famous 'Wuxia" novel by Jin Yong.. then you would have know the characters of XLN and YG :) Apparently you have not read the novel.. hmmmm... maybe you're ABC (American-Borned-Chinese) or White American or you only read engineering books and trading books :D anyway, i don't care you are white or black or green, you're my dear brother LOL :)

PO .. in order to be CP or to bring your trading to higher level...
~ You have to MASTER your emotions and Never let the emotions master you when you're trading!!!..emotion is Not science.. it's Feelings (no logic!)..

now..engineer put your emotion/feeling to science etc ... or be a love-sick puppy to someone ... it's ok! :D but Never be emotional/feelings when trading!!! if sis can be very Cool so can You_ dear PO! :)
 
Quote from PatientOperator:

Dear Sis ~~~,

Thank you! Now I know who XiaLongNui and Yang Guo are. :)

--po

now here they are .. the lyrics of the classic songs are very beautifully written for the condor trilogy .. only wish if you can understand cantonese and able to read the chinese characters/mandarin ... it's so beautiful :D

http://www.youtube.com/watch?v=nNEkh4GneT0

http://www.youtube.com/watch?v=JakXjqUHn4o

the class cool beauty XiaLongNui :)

http://www.youtube.com/watch?v=d6J82PhKIBE

Now.. dear PO & Matcha, u2 must be 'cool' like her LOL:D
 
Quote from PatientOperator:

Hi Boli,

Stochastic is very sensitive especially in the smaller timeframe like 1 or 2 minute chart. I look at all the stochastic on higher timeframess, 5 min, 15 minutes and 30 minutes.

My biggest weakness is to also look at the Stochastic in the smaller timeframe for exit. This often leads me to limit my potential profits too soon.

--po

Po,

But wait! there's more!
I don't want to bang an old drum, but. I like Boli's list but there is another I like to keep me in the trade (trend). The Ergodic Oscillator, it is much more forgiving in the over B/S regions. I'm old school, and cut my teeth on Blau and Lane. I also hate long slow drawn out intraday trends, but this helps with that. Here's the book with details and the math.:eek:

http://www.amazon.com/Momentum-Dire...=sr_1_1?s=books&ie=UTF8&qid=1285330709&sr=1-1

Another consideration, chart your longer time frame oscillators on your short term chart. If you're trading off a 5m chart and taking signals off a 15m or 30m just multiply out the paramaters (saves looking from screen to screen). Also I often close my positions at the first sign of weakness, try charting the spread in any oscillator (ave & signal line) as a histogram, I find it a great way to "see" the momentum "falling".

This book (although poorly reviewed) details (although somewhat excessivley) many ways to use indicators outside the box. As always do your due diligence on any change in settings , before you put your capital at risk. :)

http://www.amazon.com/Technical-Ana...=sr_1_1?s=books&ie=UTF8&qid=1285330778&sr=1-1
 
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