Matcha's Dow E-mini Journal

[BSAM]

Quote from Matcha:

Excuse me for saying that either. Please don't get offended for my shallowness and poor english

BSAM= BS I am?

Dat's a good one! I do that a lot. I was trying to be serious about your trading journey, though. You seem like you are really interested. Good luck!

 

[Bolimomo]

Quote from Matcha:


.....
I ain't coming back to LIVE trading untill I have a clear sounding methodology proven to work and started to feel trading is "simple".

I often stare at charts of the instruments I trade.

Below is a chart of AAPL yesterday 9/30/10. I see one "directional run" in the morning (down direction). This is a typical run sequence. I labelled them #1, #2 and #3.

In region #1... the thing to do is to stay with the trend... hold as long as I think the trend will last. Intraday trends typically last for 1 hour. Sometimes 90 minutes. Occassionally 120 minutes. But very rarely longer than that (unless it's a rippy trend).

When we get into region #2... think counter trend. Look for 3/4 waves... Momentum Divergence, Double Bottom, Adam/Eve Bottom, time-of-day, etc... Money can be made in fading the trend and go with the bounce.

Region #3... the primary trend direction was still down. But there was a bounce. Money can still be made in fading the bounce.

Region #1, #2, #3 are more predictable. Beyond region #3... that's anybody's guess. It could go up, it could go down. A lot of factors involved.

Region #1 is the most lucrative. But of course one does not usually notice it until it has already happen. So the challenge is to ID all the "hints"... the "hints" that a down move is imminent.

So collect screenshots of these runs. Put them in a Powerpoint file. Maybe one for up runs and one for down runs. Then play them frame by frame. Stare at them. May be you can observe some useful hints... the preludes before the runs. Maybe set some trading rules to describe commonalities.

 

[Redneck]

Quote from NoDoji:

I think you are evaluating too many things and missing the context as a result.

Remove everything from your chart except the price bars. The 20-bar MA is optional, because you can draw or visualize trend lines instead.

Keep a 1-min chart for cross-reference if you want. This is also very optional and not really necessary. A 1-min chart can help you see internal double tops and double bottoms a bit more clearly at times, and you can see the price waves inside large/whippy/spiky 5-min bars when the price action's sloppy. Sloppy price action is usually the signal to sit on hands, but it can occasionally present a good opportunity when viewed through the microscope of the 1-min chart.

Now with only price bars in front of you and a 20 EMA or a couple simple trend lines, you have everything you need.

I bet I could trade from this set up

----------------------------------------------------------------------------------------------------------------------------------------------------------------

Anyway – don’t want to deter from NOD’s post – just wanted to add


If you go this route – be very, very careful not to become fixated on the 1 minute chart – it is very easy to do as it offers more “action”… and the “perception” of less risk

Both are deadly traps to fall into



Additionally

Please do not look at the 1 minute…, and 5 minute charts discretely..

Instead look at the 1 minute candles as the foundation building up and into the 5 minute


NOD,

Don’t want to overwhelm Matcha… You know what I’m referring to – so I'll step out


Matcha,

Keep on keeping on – you’re doing fine


RN

 

[Matcha]

Quote from Bolimomo:

I often stare at charts of the instruments I trade.

Below is a chart of AAPL yesterday 9/30/10. I see one "directional run" in the morning (down direction). This is a typical run sequence. I labelled them #1, #2 and #3.

In region #1... the thing to do is to stay with the trend... hold as long as I think the trend will last. Intraday trends typically last for 1 hour. Sometimes 90 minutes. Occassionally 120 minutes. But very rarely longer than that (unless it's a rippy trend).

When we get into region #2... think counter trend. Look for 3/4 waves... Momentum Divergence, Double Bottom, Adam/Eve Bottom, time-of-day, etc... Money can be made in fading the trend and go with the bounce.

Region #3... the primary trend direction was still down. But there was a bounce. Money can still be made in fading the bounce.

Region #1, #2, #3 are more predictable. Beyond region #3... that's anybody's guess. It could go up, it could go down. A lot of factors involved.

Region #1 is the most lucrative. But of course one does not usually notice it until it has already happen. So the challenge is to ID all the "hints"... the "hints" that a down move is imminent.

So collect screenshots of these runs. Put them in a Powerpoint file. Maybe one for up runs and one for down runs. Then play them frame by frame. Stare at them. May be you can observe some useful hints... the preludes before the runs. Maybe set some trading rules to describe commonalities.

Thanks, SIFU. I am creating them now. I would love to make money from the 1,2 3 stage.

As a matter of fact, I have 3 set ups I traded with. and for each setup I have a excel file included 20 screenshots/trades documenting all the set ups. I called them backtesting. I did it while back. But I haven't been able to look at them closely to see how much points is the run usually happened? What kind of similarities are they? What is the hint? If I missed the entry, then where is the other one should be? I will stare them more!!! thanks!

Btw, I have always wanted to ask. What are the colorful fishnet sockings on your chart?Gamma?:eek: No worries, I am not adding them now.

 

[Matcha]

BTW, do you know colorful fishnet sockings are last year's trend for women? the shocking color with holes are the most popular! just like the color combination in your chart.

maybe you were another McQueen in your past life?

:eek:

 

[Bolimomo]

Quote from Matcha:


.....
Btw, I have always wanted to ask. What are the colorful fishnet sockings on your chart?Gamma?:eek: No worries, I am not adding them now.

The lines (plots) in the main price window is GMMA (Guppy Multiple Moving Averages). If you want to read up more on it:

http://www.google.com/images?hl=en&...=UTF-8&source=og&sa=N&tab=wi&biw=1472&bih=727

http://www.google.com/search?hl=en&...42&um=1&biw=1472&bih=727&ie=UTF-8&sa=N&tab=iw


My "BoliGMMA" indicator is for sale. $150. You may buy it from Bolimomo Capital Management LLC.



The red/green histogram in subgraph 2 is a proprietary indicator "Volume With Direction" I bought from a trading software developer. It incorporates volume into a momentum indicator and I like it.

The bottom histogram and plots in subgraph3 is my own proprietary indicator. You can buy it for $150. LOL!

 

[NoDoji]

Quote from Redneck:

If you go this route – be very, very careful not to become fixated on the 1 minute chart – it is very easy to do as it offers more “action”… and the “perception” of less risk

Both are deadly traps to fall into



Additionally

Please do not look at the 1 minute…, and 5 minute charts discretely..

Instead look at the 1 minute candles as the foundation building up and into the 5 minute


NOD,

Don’t want to overwhelm Matcha… You know what I’m referring to – so I'll step out

This is so true. A 1-min chart is useful in very limited situations and I'll make sure Matcha stays out of trouble with it!

Quote from Redneck:


Matcha,

Keep on keeping on – you’re doing fine


RN

Matcha, this is a very good sign! Once RN started saying this to me, I had well under a year of anguish left to endure before I finally "got it".

 

[dcbrown]

A couple of things I noticed staring at the chart from today.

Price spent almost no time above the open before moving down to yesterdays close with the most negative tick excursion of the day.

From a low just below yesterdays close price moved back up in a well defined channel without quite making it back to the open.

 

[~~~]

Quote from Matcha:



...........................

Now trading makes me think its just a reflection of personality. The weakness and strength. But now I don't know how to fix them...

And I have a motto that "stay simple". easy to say, hard to do...

Yeah Fashion Queen Matcha ... just "imagine" ... a modern beautiful lady dressed up like a 'christmas tree' and weared very heavy makeup & lot of jewelleries ... made her more beautiful?? or a beautiful lady dressed up with simple elegant dress with very little makeup & jewellery.... made her even more beautiful and more attractive??

sweetie ... sometimes "Simplicity" is beautiful & the best!!!
try doing some 'yoga' & 'meditate' and listen to some beautiful music ... it gives you a peaceful & clear mind to trade.

 

[Bolimomo]

Quote from ~~~:

Yeah Fashion Queen Matcha ... just "imagine" ... a modern beautiful lady dressed up like a 'christmas tree' and weared very heavy makeup & lot of jewelleries ... made her more beautiful?? or a beautiful lady dressed up with simple elegant dress with very little makeup & jewellery.... made her even more beautiful and more attractive??

I think all guys need to out-do David Bowie and Boy George in makeups, with more blink blinks than LL Cool J.