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Price Action Journal V1.5
- Thread starter TraderKaizen
- Start date
My trades today.
Made 3 trades today. Overall still a little disappointed at my inability to hold on to winners.
Trade 1:
Long on 3br with 2 higher highs, but failed to notice double top had formed, stop out for 1.5pt
Trade 2:
Long at ORH thinking it would hold but it didn't and took full stop of like 2 pts
Trade 3:
my best entry for the day, when the blue line turned from s to r, i shorted when i saw it failed to break through. only concern is that i exited too quick and missed the run.
Good luck trading guys, its great to see this thread full of action again.
Cheers
JW
Made 3 trades today. Overall still a little disappointed at my inability to hold on to winners.
Trade 1:
Long on 3br with 2 higher highs, but failed to notice double top had formed, stop out for 1.5pt
Trade 2:
Long at ORH thinking it would hold but it didn't and took full stop of like 2 pts
Trade 3:
my best entry for the day, when the blue line turned from s to r, i shorted when i saw it failed to break through. only concern is that i exited too quick and missed the run.
Good luck trading guys, its great to see this thread full of action again.
Cheers
JW
Attachments
Quote from stoneface:
My two cents on this topic from studying Anek's past charts. (I saved nearly all of them and refer to them from time to time).
If you go back on your own trading system and plot horizontal lines corresponding to the 15 minute opening range of ES or any stock, you will find that quite frequently the ORL/ORH lines serve as support and resistance throughout the day.
Given today's trading, you can see ORH act as resistance at 9:38am (original range defining moment), 9:59, and 15:45 EST. the 15:45 EST resistance point at 864.25 was the last gasp upwards before the end of the day dump. 864.25
ORH also acted as support a few times during the afternoon narrow range/triangle.
ORL at 854.75 was support at 9:41, 9:46, 11:37 and 11:44. It resisted at 10:35.
I often leave the prior day's ORL and ORH as S/R lines on my charts for further reference. I change the color to a drab olive so I know it was yesterday's range. I have the current day's ORH/ORL in hot pink.
In general, I like to see ORh or ORL "flip" before taking a direction on the day. Today was a pain as we had a morning reversal as well as an afternoon triangle that reversed direction again.
I think the ORH/ORL was an evolution of Anek's style somewhere along the AHG trail. Anek's original AHG post discussed 2 HH's and 2 LL's defining the trend. After reviewing his charts from summer 2008, it seems that he lets the ORH/ORL be his first guide on direction for the day after the bell rings. With experience, it seems that the confluence of major S/R levels w/ reversal pattern formations and support/resistance level flipping help define and confirm any change in direction.
Anek is "faster" than simply looking for 2HH's or 2LL's. For instance, see the top of Friday Nov 14. First thing is, the high of the prior day broken but had not turned into support. After the subsequent retrace from 918, prices failed to make a higher high despite trying twice. The new high failure coupled with a trendline break might have given you either a 1-2-3 basic reversal signal or even an inverse dragon. You could have shorted off the trendline break before witnessing two LL's. If playing an inverse dragon, you might have been adding to your position as the lower low's formed to confirm the major reversal.
Paying attention to PA would have let you get short from about 908 as opposed to waiting for 2 LL's & LH's. Better entry, less heat, more money.
I am trying to get there too... given that I'm recently unemployed, I figured now would be a good time to learn as quickly as possible. Thankfully, the AHG thread has been around for over a year and I wish I had been a part of it in the making. Otherwise, I would probably be trading MACD crossovers.
Thanks for everyone who contributed to the success of that thread and especially to Anek himself.
Hope that helps,
Stone
Nice explanation. Also, if you pull up a daily chart, you'll notice that most LARGE range and/or trend days have the opening at one extreme, so if you get a trade near/close to the opening in the right direction you can have a very large winner, and/or even add in the middle with little account risk.
shakira
p.s.: Anek delivered on his offer, but I can't share the code of the 3BR. What I can do is continue to assist JFW or anyone else willing to write it again, with the interpretation and writing of a different code, that does the same thing.
Today was study day for me learning to read the tape volume 5 second chart at critical points. Not much progress so far.
Quote from stoneface:
Anek is "faster" than simply looking for 2HH's or 2LL's. For instance, see the top of Friday Nov 14. First thing is, the high of the prior day broken but had not turned into support. After the subsequent retrace from 918, prices failed to make a higher high despite trying twice. The new high failure coupled with a trendline break might have given you either a 1-2-3 basic reversal signal or even an inverse dragon. You could have shorted off the trendline break before witnessing two LL's. If playing an inverse dragon, you might have been adding to your position as the lower low's formed to confirm the major reversal.
Paying attention to PA would have let you get short from about 908 as opposed to waiting for 2 LL's & LH's. Better entry, less heat, more money.
Stone
Stone thanks for that elaboration on the early entry. When I see this setup in the past, I would not short the tl but after a pull back. however, this seems better, I'll try it out.
JW
Quote from Anekdoten:
Not that I know of but remember that re-entry is only one commission away.
Look up Trader's Vic 2B pattern with confluence, a very potent pattern low risk high reward play.
Anek
Attached is the annotated Vic 2B entry.
JW
Attachments
Quote from shakira:
Nice explanation. Also, if you pull up a daily chart, you'll notice that most LARGE range and/or trend days have the opening at one extreme, so if you get a trade near/close to the opening in the right direction you can have a very large winner, and/or even add in the middle with little account risk.
shakira
p.s.: Anek delivered on his offer, but I can't share the code of the 3BR. What I can do is continue to assist JFW or anyone else willing to write it again, with the interpretation and writing of a different code, that does the same thing.
Today was study day for me learning to read the tape volume 5 second chart at critical points. Not much progress so far.
Does Anek always use the 5 sec chart for entries? I use the 25 tick chart sometimes... 5 sec charts are not an option for TS users. I may need to switch soon.
Wasn't there a 3BR color coded paintbar indicator that was in the AHG thread? That tool would do a reasonable job of identifying 3br's. It painted the breakout of the 3rd bar bright green or bright red. It was a SHOWME TS Indicator called 3BAR. Wouldn't that serve the same purpose for someone that wanted a visual indicator of the 3br?
Quote from jfw215:
Stone thanks for that elaboration on the early entry. When I see this setup in the past, I would not short the tl but after a pull back. however, this seems better, I'll try it out.
JW
I happened to be long at that point so I was exiting a long that was acting funny as opposed to entering a short. I too, entered short on the "bounce" that tried to touch the trendline.
Anek had made comments about how a break of a trendline usually gave an opportunity for a bounce back to the trendline (but not back over it) as a great chance to get a better fill on the TL break. Sometimes, the TL break just runs away on you so the only chance was shorting at the TL break. Sadly, nothing is 100% ...
TL break entries have the disadvantage of having a stop that can be rather far from your entry. For Friday Nov 14th, the lower high provided some relief for defining a closer stop than 918.
I'll tell you what is frustrating me right now... 3br's entries and stops on the 10k volume chart can be 5-6 points these days. I wish for better fills and closer stops and have been examining the 25 tick chart for clues. The TL break on a fast 25 tick chart can give away a 3BR in progress. However, accuracy is not as good as a 3BR with confirmation but the tradeoff is that your stops are very tight.
Quote from stoneface:
I happened to be long at that point so I was exiting a long that was acting funny as opposed to entering a short. I too, entered short on the "bounce" that tried to touch the trendline.
Anek had made comments about how a break of a trendline usually gave an opportunity for a bounce back to the trendline (but not back over it) as a great chance to get a better fill on the TL break. Sometimes, the TL break just runs away on you so the only chance was shorting at the TL break. Sadly, nothing is 100% ...
TL break entries have the disadvantage of having a stop that can be rather far from your entry. For Friday Nov 14th, the lower high provided some relief for defining a closer stop than 918.
I'll tell you what is frustrating me right now... 3br's entries and stops on the 10k volume chart can be 5-6 points these days. I wish for better fills and closer stops and have been examining the 25 tick chart for clues. The TL break on a fast 25 tick chart can give away a 3BR in progress. However, accuracy is not as good as a 3BR with confirmation but the tradeoff is that your stops are very tight.
Stone,
Yea, nothing is 100%. For now I'll wait for the bounce until I become more experienced. I'm also looking at the 5sec chart for better entries. However, I'm not too good yet. I believe you're suppose to look for the same setups as you would on the 10k. But with the 5 sec you also need to look at volume, and it's so fast that I don't have enough time to process the signals... I guess only more screen time will help.
JW