Pete's Place

I've been thinking about why I make those dubious entries. It's difficult because there are many reasons.

Reasons for taking bad entries:

  1. After a string of losses or scratches. Doing everything right, but it's not working. I get impatient and grab for any trade in sight.
  2. After a winning streak. Printing money is intoxicating. Leads to a feeling of invincibility. I'll start taking lower quality entries.
  3. Chasing. I have yet to come to grips with the fact that I cannot take part in every move.
  4. Inactivity. Sometimes there's nothing there for a while, so I'll settle for a more dubious entry out of impatience.
 

  • [5] Fear of missing out. Especially vulnerable to this at new highs and new lows. I want to sell the high of the day and buy the low of the day. I already showed myself that this doesn't work in the long run and came up with the grpt. Yet still, I have violated this rule almost every day this week.
 
Peter
I confess I don't drop by unless I get an email there's been activity & there've been a dearth of emails lately.

I can't find the definition of "GRPT" or "Green Hammer".

Thanks
JD
 
Quote from JDRower:

definition of "GRPT" or "Green Hammer".
More...

GRPT = Golden Rule of Pullback Trading =
don't short immediately off the high of the day =
don't go long immediately off the low of the day.
I made up this rule after looking at a large number of losses over a long period of time.

The way I do it (when I do it right) is to be patient and wait for a second attempt at the high/low. If that fails, then the trade many times works out for me.

Green hammer = White Hammer, the candlestick with a green
(white) body and a long lower shadow. It shows resistance.
 
err dont discretion yourself into scizophrenia. u already seem to be swinging at the fences with no clear technical method. but what do i know i cant trade either lol.
 
Kay, you are correct as usual. And psychic too. I was getting this ready to go before I saw your post:

Using the "Process" I found most of my success this week with two types of entries.

Trend Touch Entry

  1. Move starts.
  2. Wait for counter move.
  3. During counter move, watch for a candle shadow.
  4. Draw the line from the start of the move through the shadow.
  5. Open position when price touches the line.
Note: many times after a profit, the next counter move will violate the trendline (close outside of it). Be on the lookout for a new shadow and draw a new trendline; take advantage of it.

S/R Touch Entry
Type I: resumption of trend.
Type II: reversal.

  1. Observe price action near previous S/R levels.
  2. For Type I, enter when price touches that level again, after previously passing through.
  3. For Type II, more patience is necessary. Wait for at least one complete candle with a shadow in the s/r level and another complete candle with a shadow either slightly above or below the level to enter.
 
Focus on entries again.

Next week all my trades will be one of the three: Trend Touch (TT), S/R Continuation (SRC), or S/R Reversal (SRR). This may be biting off too much, we'll see at the end of next week. If it is too much, I'll just pick one of them for the week after next.

The product I want at the end of the week is a distribution of MFE's for each technique, by time frame.

Comments welcome!

Pete
 
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