Price Action Journal V1.5

[Specterx]

Quote from BuyYourFreedom:

7 trades today...

2 winners - 4th & 5th... horrible exit on the 5th

3 losers - 1st, 3rd & the 7th.

2 BE - 2 & 6

Don't know how much you use those TLs but I personally don't think sloping TLs have any validity on volume charts, except as a very general gauge of direction (but then you can see that without the TL...). Reason being that most people who use TLs as reference points trade using time charts, and the x-axis distances on our vol charts are different from theirs.

 

[BuyYourFreedom]

Quote from Specterx:

Don't know how much you use those TLs but I personally don't think sloping TLs have any validity on volume charts, except as a very general gauge of direction (but then you can see that without the TL...). Reason being that most people who use TLs as reference points trade using time charts, and the x-axis distances on our vol charts are different from theirs.

Hey Spec

I hear what you are saying, but shouldn't a chart display the same peaks and valleys regardless of how the data is displayed??

 

[ITR2744]

I have some problems with my stops. In the last couple of weeks, volatily increased and my logical stops (according to PA, stop below/above last swing low/high) became much wider than normal (entry bars getting longer and longer...).
How do you handle this? I mean, it doesn't make sense to use a fix point stop which is set in nomans land without a relation to significant PA. Sure, if you trade multiple contracts you can reduce size, but what about one lot traders?

 

[mdl060374]

Quote from Specterx:

Don't know how much you use those TLs but I personally don't think sloping TLs have any validity on volume charts, except as a very general gauge of direction (but then you can see that without the TL...). Reason being that most people who use TLs as reference points trade using time charts, and the x-axis distances on our vol charts are different from theirs.

Maybe I am missing something, but they have the same validity because they represent the same thing on all types of charts..

Anek and others used volume based charts with TL with much success.

I really have a hard time going back to time based charts after using volume based ones.

 

[jfw215]

2 trades this morning on the NQ...

Trade 1, Stopped out
Notice trend line broken, lesson is wait for confirmation of uptrend or continued downtrend before entering.

Trade 2, Winner
Great entry with the trend, textbook AHG. Only problem is I should have not moved my stop up early, could have picked up more points. The point of this system is to allow big winner to run... not allowing bigger winner will kill r/r. Hope I can post lessons from each trade I've taken from now to... whenever I'm consistent...

Attached are is the annotated chart.

Cheers

JW

 

[BuyYourFreedom]

Quote from ITR2744:

I have some problems with my stops. In the last couple of weeks, volatily increased and my logical stops (according to PA, stop below/above last swing low/high) became much wider than normal (entry bars getting longer and longer...).
How do you handle this? I mean, it doesn't make sense to use a fix point stop which is set in nomans land without a relation to significant PA. Sure, if you trade multiple contracts you can reduce size, but what about one lot traders?

I hear you. I am having the same problem. Given the enviornment I think we have to be more selective when putting on trades. Sometimes not taking a trade is the best trade.

 

[jfw215]

Quote from BuyYourFreedom:

7 trades today...

2 winners - 4th & 5th... horrible exit on the 5th

3 losers - 1st, 3rd & the 7th.

2 BE - 2 & 6

Hey BYF,

What was the rationale for the 3rd and 4th trades? The 5th could've been a home run... we all gotta work on letting it ride and not close out too quick. I did that this morning as well.

Cheers

JW

 

[BuyYourFreedom]

Quote from jfw215:

Hey BYF,

What was the rationale for the 3rd and 4th trades? The 5th could've been a home run... we all gotta work on letting it ride and not close out too quick. I did that this morning as well.

Cheers

JW

3rd & 4th – I got sucked into trading the red support line. I have bad habit of trying to anticipate support becoming resistance. Complete lack of discipline.

 

[BuyYourFreedom]

6 trades – winning day

Winners - 1st & 6th

Losers - 2nd, 3rd, 4th, 5th (small losses except for the 3rd…took a full stop)

Need to do a better job of staying out of the chop!

 

[Specterx]

Quote from BuyYourFreedom:

Hey Spec

I hear what you are saying, but shouldn't a chart display the same peaks and valleys regardless of how the data is displayed??

Sure, horizontal lines and lows/highs are the same. It looks like it worked OK there, but I used to get confused all the time when I first started using vol charts and price seemed to react oddly around TLs. Could be more of a problem on the ES where volume pace changes greatly throughout the day...