Price Action Journal V1.5

Quote from ggoyal:

wow, unless you got the morning shorts, the rest of the day was pretty dam choppy. nothing at all after those two drops.
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Yeah, don't think i have ever seen a day with such big range and so litle trading opportunities
 
Quote from traderTX:

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.
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Fantastic trading, TraderTX!

Bear in mind that the pullback/retracement level tends to provide some insight as to the health of the trend.
38% - Yeah Baby! (Momentum)
50% - Yes! (Strong, solid PA)
>50% - Hmmm, better watch this closely. You might take some heat. BreakEven + x is the way that I manage this trade. It just took a long while to feel comfortable enough to watch tick values of my DOM scale back before continuing the trend.

Another note: the 3rd leg of any trend often times experiences a deeper pullback/retracement before peaking and ultimately reversing. This pullback might go as deep as 62%.
Key takeaway - try to always know where you are within Market Structure. It allows you a chance to select the right tool while managing your trades.
:)
Take care,
Tex
 
Quote from amitman:

Nice Trade!
I also used the same formation in the ES today for a good trade,
what halped me decide to take the trade ,though, was not the Fib line but the failure of price to break the downtrend line (see picture)

f_Example24m_8cc99f7.jpg
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Nice work Amit. As they say, "Resistance is Resistance".
:)

Regards,
Tex
 
Shakira -

I appreciate you continuing to post your P&F charts.

Just want to make sure I understand your entry technique. If you're looking to short off of resistance line, you wait until a column of red circles prints (indicating at least a 5 tick pullback from the recent high)? It appears you often get entry prices a tick or two better than that. Are you anticipating the print of the 5 red circles, or are you waiting for the 5 red circles to print, and entering on a bit of a pullback?

Thanks.

Sandy
 
Generally those are limited to the failed breakout trade, i.e. price exceeds the previous top or double top near resistance by 1 or 2 tics (stop run) and reverses into the range instead of breaking out. Same story for the bottoms. I try to enter before the change of color. It is not 100% mechanical. It requires practice. Waiting for the mechanical 5 tic reversal is certainly an option, but in lower speed days gives you a lower risk entry.
 
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