Price Action Journal V1.5
- Thread starter TraderKaizen
- Start date
I've been a fan of P&F charts for some time (I personally use the .25 x 6 for the ES, and I used to use the .1 x 10 for the ER2 when I traded that instrument). I like how they cut out much of the noise of price action (since there's no time, tick or volume element on the chart).
Would you mind explaining your trade logic for those entries and exits on this chart?
Thanks.
I originally missed getting in on MGM at the bottom. I got in at $ 28/sh which looks to me like a pullback on a recent uptrend.
The stock is currently around $ 33/sh.
If you look at volume, you can see the spike of strong black volume when the stock finally hit its bottom low price.
I don't know if there is a way to screen for stocks with strong volume spikes that may or may not signify a top or bottom.
Obviously, I also got in due to f/a reasons as well, for example, they are going to open new real estate projects in 2009.
I may get out for a trade or hold the stock longer as an investment. I did not buy enough shares to do both.
Also, you can see the stock was on a down trend on low volume after breaking the 50 moving average until the big spike in black volume. I had been watching the stock for awhile and thought I missed the boat on the 1st spike to $ 35/sh, but I was lucky to be able to buy on the pullback.
The stock is currently around $ 33/sh.
If you look at volume, you can see the spike of strong black volume when the stock finally hit its bottom low price.
I don't know if there is a way to screen for stocks with strong volume spikes that may or may not signify a top or bottom.
Obviously, I also got in due to f/a reasons as well, for example, they are going to open new real estate projects in 2009.
I may get out for a trade or hold the stock longer as an investment. I did not buy enough shares to do both.
Also, you can see the stock was on a down trend on low volume after breaking the 50 moving average until the big spike in black volume. I had been watching the stock for awhile and thought I missed the boat on the 1st spike to $ 35/sh, but I was lucky to be able to buy on the pullback.
Baldy is indeed the source where I received this data. I met him through the Sanuk group and did not realize he visited here at ET. He has some great ideas and was also the one that introduced me to range bars. If you see his posts, give them credence, because he is a real trader that has been at it for years. He openly shares his knowledge and is a very personable gentleman. I actually learned a lot from him.
I'll be away on business so won't trade or post much this week. I hope everyone has a great week trading.
00-SR lines are from previous days, and generally are not redrawn till next day. I view them as a zone although they are depicted as a 1 tick line. When there are too many, I delete them all and start fresh, generally once a week or more often.
0-Stops are generally a few ticks above resistance or few ticks under support. I work to move them to a no loss level as soon as reasonable PA allows.
1- All entries are either a short just under resistance or long just above support. The mechanical entry is at the PF reversal point, but with some experience, sometimes one can enter "closer to the turn", i.e. jump the gun. A warning however is that those few early ticks are the hardest to get if you are in a winning trade, and just a waste of time and money if you are in a losing trade.
A "breakout" that does not hold with the previous resistance becoming support, is generally a good trade in the opposite direction.
There can be more than 1 entry in the same direction, after the original 50% exit is completed on the initial entry.
2-The first exit of 50% is usually if price moves in favor about the amount of the initial risk, effectively doubling the risk in the trade, as the initial stop can't be moved yet with solid PA reasons. If price returns and takes your stop, after taking 50% off, you do not lose much equity.
3-The second exit is somewhat more discretionary. Generally a PF reversal after taking a SR level or an exit near the SR level or a 1 tick excess (stop run) of the previous short term PF SR level, or a DT or DB forming, etc, etc.
Those above are, more or less the "hard" rules. It's difficult to discuss the "soft" rules that come from experience and observation.
I hope it helps.
Short day for me today but a good one! +8.1 pts on ER2.
I want to thank TXGrillGuy for reminding me to plot fib levels....one of those things I knew...but ultimately had to be reminded of!! It kept me in today and allowed me to hit my daily profit goal in the first 2 hrs of trading.
Nothing much else to say....here's the chart.
I want to thank TXGrillGuy for reminding me to plot fib levels....one of those things I knew...but ultimately had to be reminded of!! It kept me in today and allowed me to hit my daily profit goal in the first 2 hrs of trading.
Nothing much else to say....here's the chart.
