The way I enter is known as the three bar break provided by stealth trader.Do a search of his name he has a great illustration of the three bar break best way I know of to enter in on the retrace or to enter in on a trade period. I don't know how to do attachments or I would provide it for you.When you use the three bar break Stealth will enter in a price halfway down the third bar I don't but you can experiment and see what works best for you.
NoDoji's Day Trading Log
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Quote from NoDoji:
Fantastic post, Hog.
This makes it easy to visualize the price action we see every day.
I'm always afraid to join a strong trend on later retraces because it seems price has gone too high or too low to go further, and so at that point I'm looking for counter-trend entries. I miss so many really great final pushes as a result.
Sometimes those final legs are the best of all. Looking at ES end of yesterday, it had a huge final push into the close.
I use the term "huge" loosely, relative to the ES action lately
Hey NOD, A couple qoutes from Mr Brooks:
"When a trend is that strong that it cannot get anywhere near a trendline, But you feel it has gone much too far , And you think entering "with trend" near the extreme is risky, You are missing THE most reliable trades that exist ! All minor pulbacks even a single small inside bar are WITH TREND ENTRIES " Al Brooks
"In a very strong trend, All trades should be WITH TREND ENTRIES ....and no trades should be countertrend scalps......as tempting as they are ! " Al Brooks
From studying his work.....[which has really helped me]....the one thing that keeps you from endlessly entering with trend...is when you get what he calls a "trend channel overshoot"...at this point you step back and then look for the first countertrend reversals.....its uncanny how once you get the "overshoot" most of the time it kills the trend !
Before I started studying his work......I focused completely on "reversals".... and while It works....its alot more stressfull.....stepping in front of strong trends is NO fun......the other issue that was causing problems.......I finally figured out was my "timeframe" trying to trade too fast a chart....and missing too many trades everyday........I think I have that issue worked out...and tomorrow is my first trading day of the new year....so we will see.
I am sure you already read this stuff in his book....but I thought it was worth mentioning again.......it's all good stuff......as is all the GREAT advice from Bighog and the other good traders who have posted on your thread ! Lets have a great trading week !!!!!!!
Quote from bighog:
Retraces are welcome news if we missed the initial breakout or looking for a spot to add-on to existing trade.
Lets say we see a new high for the day after we
Retraces draw in food for a continuation of the trend. Once the trend quits getting fed the move will show a reversal because then the shorts have run out of powder to fight the longs and the longs detect the change in sentiment and add to the reversal by cashing in by selling.
Rinse and repeat. Over and over.
Excellant journal your comments are very helpful. Why does process continue to be elusive if it is such a frequent "rinse and repeat". your post doesnt seem to answer that question. i know it is subtle changes in the market but is that all it is? or am i just a stubborn idiot who keeps wanting to countertrend trade?
The way I personally trade is I use bar charts,no indicators,I use horizontal lines for resistance and support Which I get from my longer time frame charts. I use small lines to mark my line breaks for entry with the trend. I only trade from the opening 9:30 to 11:30 -12:00, I do not trade during lunch hours. Very rarely trade the afternoon hours, for me defintely not the last 45 minutes the market is open.
+$1199
What an interesting day that hopefully taught me a lesson. I only sim traded from the open because I was bound and determined to learn how to manage my trades properly without cutting my profits short and letting my losers go full throttle. Once I felt confident in myself, I was ready to go live.
ETN had been making a strong run and I put on a small counter-trend short position on a stall at the new HOD. Since I was top-picking, I locked in my stop near b/e immediately, which was hit for +$4 and price resumed the uptrend.
I did some more sim trading, and watched ESRX out of the corner of my eye because it pulled back quickly right to the 20 EMA from a new HOD (and a new 52-week high), and as volatile as this one can be I thought it would be a solid short off a lower high if that 20 EMA became a ceiling instead of a floor.
I watched price move up off the 20, then there it was, pulled back down through the 20 off a lower high of 92.64 and without hesitation I put on some SIZE to the short side @ 92.41 with a .05 stop. I was going to catch a momentum ride or not and I had no interest in piddling around off a confirmed setup like this.
No sooner did I put in my stop, we had a power outage. A total power outage that messed up our internet connections and by the time we got that going, our UPS backup times were exceeded and our systems shut down. I said to my husband, âNow I know absolutely, positively that Iâm jinxed.â
Just over an hour later, the power returned and I logged in expecting to see my Realized P&L of -$30. Instead I about had a heart attack as I looked at nice green +$1222 in that field. I checked the chart, saw that a solid hammer had been left behind off the LOD of 89.66 and I trailed a tight stop hit @ 90.01, realizing a gain of $1195.
I looked at the chart and figured that in a best-case scenario I would've likely left $300 on the table if Iâd been micromanaging this trade, because I wouldâve covered the whole position on the first pivot off that initial selloff.
More likely however, I wouldâve excitedly scalped $200 at the first hesitation when price reached an oversold state, never even enjoying the Yippie! ride that quickly ensued.
So Iâm thinking perhaps the power outage was actually an effective way to demonstrate to me the value of letting profits run on at least half a position. Especially on a confirmed setup.
What an interesting day that hopefully taught me a lesson. I only sim traded from the open because I was bound and determined to learn how to manage my trades properly without cutting my profits short and letting my losers go full throttle. Once I felt confident in myself, I was ready to go live.
ETN had been making a strong run and I put on a small counter-trend short position on a stall at the new HOD. Since I was top-picking, I locked in my stop near b/e immediately, which was hit for +$4 and price resumed the uptrend.
I did some more sim trading, and watched ESRX out of the corner of my eye because it pulled back quickly right to the 20 EMA from a new HOD (and a new 52-week high), and as volatile as this one can be I thought it would be a solid short off a lower high if that 20 EMA became a ceiling instead of a floor.
I watched price move up off the 20, then there it was, pulled back down through the 20 off a lower high of 92.64 and without hesitation I put on some SIZE to the short side @ 92.41 with a .05 stop. I was going to catch a momentum ride or not and I had no interest in piddling around off a confirmed setup like this.
No sooner did I put in my stop, we had a power outage. A total power outage that messed up our internet connections and by the time we got that going, our UPS backup times were exceeded and our systems shut down. I said to my husband, âNow I know absolutely, positively that Iâm jinxed.â
Just over an hour later, the power returned and I logged in expecting to see my Realized P&L of -$30. Instead I about had a heart attack as I looked at nice green +$1222 in that field. I checked the chart, saw that a solid hammer had been left behind off the LOD of 89.66 and I trailed a tight stop hit @ 90.01, realizing a gain of $1195.
I looked at the chart and figured that in a best-case scenario I would've likely left $300 on the table if Iâd been micromanaging this trade, because I wouldâve covered the whole position on the first pivot off that initial selloff.
More likely however, I wouldâve excitedly scalped $200 at the first hesitation when price reached an oversold state, never even enjoying the Yippie! ride that quickly ensued.
So Iâm thinking perhaps the power outage was actually an effective way to demonstrate to me the value of letting profits run on at least half a position. Especially on a confirmed setup.
BANG! That's some big money there! Congratulation!
May you continue on with your success!
PA
May you continue on with your success!
PA
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