Price Action Journal V1.5

[Max22]

Here is a pic of what i mean about, picking a spot and then finding an entry technique. Some people use smaller time frames and develop an entry techniqe of off those time frames while using the larger time fram for choosing the s/r level to take action on. This is what I got from Anek's AHG thread, using an anchor and then another time frame for entry.
Again for me however finding the entry techniqe has been a challenge, and if anyone wants to post any ideas maybe it will help others as well.

 

[sandygray66]

Quote from traderTX:

Here's my chart from today...still trading the ER2 as I seem to be "feeling" it better than the ES.

Only took shorts as the retracement moves up never could take out any meaningful resistance.

Total of 4 trades for 3.7pts

One thing I have got to stop doing is trading right before lunch...I never have good trades...just haven't been able to NOT pull the trigger....still learning I guess!

Nice work TraderTX, especially for a pretty quiet day.

When working the Er2, do you use a fixed size stop, or simply use PA for the stop location? Also, what's you plan for when the ER2 leaves the CME in a few weeks?

 

[mccullek]

Quote from Max22:

Here is a pic of what i mean about, picking a spot and then finding an entry technique. Some people use smaller time frames and develop an entry techniqe of off those time frames while using the larger time fram for choosing the s/r level to take action on. This is what I got from Anek's AHG thread, using an anchor and then another time frame for entry.
Again for me however finding the entry techniqe has been a challenge, and if anyone wants to post any ideas maybe it will help others as well.

Max, I agree 100%. I trade from a 770 tick chart, but I find my S/R and trendlines on the 2400 tick chart, then transfer them to my trading chart so that I see them without having to go back and forth. Once I start trading, I trade only from the 770 tick chart and no longer refer to any other charts.

Also, as the price action develops during the day, I will also add the new S/R lines as the pull backs will many times stall at these areas, so they are important as well. Some turn out to be minor, but many turn out to be major S/R areas as well. When you see DT's and DB's form at these levels during a pull back, they are usually high probability trades. If there is a trend line in that area too, then that area of confluence is a good place to watch for your entry signal.

 

[jonbig04]

Quote from Max22:

Here is a pic of what i mean about, picking a spot and then finding an entry technique. Some people use smaller time frames and develop an entry techniqe of off those time frames while using the larger time fram for choosing the s/r level to take action on. This is what I got from Anek's AHG thread, using an anchor and then another time frame for entry.
Again for me however finding the entry techniqe has been a challenge, and if anyone wants to post any ideas maybe it will help others as well.

I understand what you mean about using a longer time frame chart so you can see the forest through the trees, but that chart (the large one) is confusing to me. Price hits the R level and bounces off one time, but it also bounced off of other areas that could be considered potential R. So you watch and price does in fact hit the same level and bounce off again, but only after that would I consider it potential R. If that makes sense.

 

[Max22]

johnbig and mccullek,
thanks for your replies. Regarding the larger chart, it would be your preference as to which one you would feel will give you the better s/r areas, like mcculek sais he uses the 2400 tick chart.
In going to the smaller time frame chart, i have felt that for me, if i dont have a specific criteria that gets me into a trade, for example a 3br pattern or a break of the low of the high bar for a short , or something objective like that, i tend to second guess the entry and my actions are led by emotion and not so much on a specific set of objective criteria.

Max

 

[mccullek]

Quote from jonbig04:

I understand what you mean about using a longer time frame chart so you can see the forest through the trees, but that chart (the large one) is confusing to me. Price hits the R level and bounces off one time, but it also bounced off of other areas that could be considered potential R. So you watch and price does in fact hit the same level and bounce off again, but only after that would I consider it potential R. If that makes sense.

John, that's why I use the 2400 tick chart. Usually you can see areas that have acted as both support and resistance, and often times, it may have repelled prices on several different occasions as either sup, res or even both. These areas are usually easy to spot and you will see a lot of consolidation and chop in the area, so you know that they are relevant.

Some people place their orders at these levels and wait on them, but I do not trade them blindly myself. If we hit one of these areas, I'm watching for a set up pattern first. If they hold, they'll often times become DT's or DBs, which are usually very relevant patterns.

 

[traderTX]

Quote from sandygray66:

Nice work TraderTX, especially for a pretty quiet day.

When working the Er2, do you use a fixed size stop, or simply use PA for the stop location? Also, what's you plan for when the ER2 leaves the CME in a few weeks?

Sandy,

Thanks! As far as stops I usually let PA take me out...simply b/c the ER2 is a wild child....it'll whip up or down 1pt and you won't even see it on the DOM hardly, it just goes and comes in a flash. If I'm taking a countertrend trade though, I usually use a 2pt stop, gives enough room for the ER2 to be itself, but also will keep you from getting in a pickle.

As far as when the ER2 becomes the TF...I will probably go back to trading the ES for a few weeks, see where the volume is on the TF. If the volume is around the same I'll move over, but if the volume is any lighter, its going to be too difficult to trade I think...

-traderTX

 

[Max22]

Mccullek,
It would be cool if you could post a chart of the setup that you take e.g. dt or db on the smaller time frame and show how it setup at a s/r zone that you chose off of the 2400
Max

 

[mccullek]

Quote from Max22:

Mccullek,
It would be cool if you could post a chart of the setup that you take e.g. dt or db on the smaller time frame and show how it setup at a s/r zone that you chose off of the 2400
Max

Max, here is my chart for this morning that I just set up. This is the 770 tick chart, but I pulled all the lines from the 2400 tick chart. I had to zoom way out on the chart so that you could see it all, but this should give you an idea of what I'm looking for.

Notice the arrows all along that major S/R line. Look how it made a DB on the far left and then started an uptrend. once it started back down, prices bounced there again, but then finally gave way. Even the last bounce would have a been a good long opportunity.

After breaking through, prices later came back and what was once support, now became resistance. That line just happened to be the high of the day today as well. Coincidence? Every time prices come back to this area, look for something to happen and react if it does. It may be today, next week or next month, but prices will likely react at this level again.

This same thing will happen on a smaller time frame on the 777 tick chart during day, so that's why I start marking my new S/R areas as they occur.

If I get a trade today that shows this in real time, I'll post it.

 

[TraderKaizen]

This morning I made what I consider a "near-perfect" trade according to my trading plan. Coming into today on the NQ daily chart, I notcied we were sitting right at the 38.2 fib retracement from the most recent upswing(1910 area). I watched my entry chart and sure enough we got a DB at 1910 and higher low! Once the midswing was taken out (1919) I placed a Buy limit order 1914.50. Once my buy order was filled I placed my stop 1 tic below the DB swing low(1909.75). My target was 1925.50 1pt below possible resistance at the HOD. I had next resistance area near 1932. I placed a limit order to exit at my target and it was filled. Mkt went higher so I left a few pts profit on the table but I am content as I traded my plan with discipline.

1 trade: +11.00pts/car

Cheers,
eD