S/R Emini Journal

[sandygray66]

Yep, you called it correctly. I took the TI course last fall, and I've added my own filters to the TI set up.

When you mention you monitor "momentum", are you referring to it in the general sense of how the price is moving, or are you watching a specific indicator to measure momentum?

 

[Paccc]

Quote from 4re:

More than anything I use the idea of it breaking through the S/R level usually by .50 - .75. I also look at my moving averages to keep me in a trade. I have had it a few times when it 1 1/2 points and start reversing. When that happens I have a problem, do I take one point or wait and see if I get stopped out. I have been trying to take the money and run and if it comes up again I try it once more. If I still don't get 2 points on that trade set up I don't take it again that day. That happened to me one day this week, I think monday.

Why not sell half, or a portion of your position at 1 1/2 points if you're unsure, and set a stop for the second half at breakeven? That way if you were right, you'd still have half of your contracts making money, but if you were wrong and it started reversing, you'd still have made money on the other half of it. Of course, if it continues to go up you would make less than you would have otherwise.

-- Paccc

 

[4re]

Quote from Paccc:

Why not sell half, or a portion of your position at 1 1/2 points if you're unsure, and set a stop for the second half at breakeven? That way if you were right, you'd still have half of your contracts making money, but if you were wrong and it started reversing, you'd still have made money on the other half of it. Of course, if it continues to go up you would make less than you would have otherwise.

-- Paccc

Actually I do this sometimes but with my schedule it is more helpful to me to just take all of it off the table go do some work and come back to look for another set up. I own a Neuro-Diagnostic company and I can get called at weird hours and have to leave. That is why I started trading this way, because the trade either works or it doesn't very fast. On trend days when my schedule allows I jump on the trend and stay there. Some of my past post you will see where I got 3-5 points. I have even been known to double into my winning trades and ride it a couple of extra points.

 

[4re]

Quote from sandygray66:

Yep, you called it correctly. I took the TI course last fall, and I've added my own filters to the TI set up.

When you mention you monitor "momentum", are you referring to it in the general sense of how the price is moving, or are you watching a specific indicator to measure momentum?

That is how I started trading the emini also. About a month after taking the course I found that I was trading opposite TI more than with them though. So I just stopped listening to them. And went back to my style of trading.

When I am taking about momentum I am talking about a couple of things, not really secondary indicators. I try to keep it very simple. I look for a strong push on the price through my enty, which is a support or resistance level. Then the psychology of the market kicks in. Other people are seeing this push also and thinking they are missing out on something so they want to jump in this is what makes the push even stronger. Since I am not too greedy I want to be out before the push ends. I wish I had more time to stay with some trend plays. I just don't have the time right now.

 

[saico]

4re, how do you determine your s/r levels? Is there a special way of it? Otherwise couldnt it be possible that several persons reading this thread looking at the same chart have different s/r levels. Thanks!

Saico

 

[4re]

Quote from saico:

4re, how do you determine your s/r levels? Is there a special way of it? Otherwise couldnt it be possible that several persons reading this thread looking at the same chart have different s/r levels. Thanks!

Saico

Good question, If you will look at my charts you will see that I determine my S/R levels at points where the candles have kept hitting a certain price and then bouncing off of it. The more times I see it bounce off the stronger the S/R is. So I wait for the price to push through by a couple of ticks and still allow me to capture 2 points before the S/R level. And to answer your second question, I know other people are looking at the same thing. That is why I started trading this way with options years ago. I don't mind if others know what or why I am doing this, the more the merrier. I use to see traders doing this same thing all the time trading IBM and QQQQ's. I still believe these traders to be some of the best in the field so why wouldn't I want to trade the same manner?

 

[saico]

Quote from 4re:

Good question, If you will look at my charts you will see that I determine my S/R levels at points where the candles have kept hitting a certain price and then bouncing off of it. The more times I see it bounce off the stronger the S/R is. So I wait for the price to push through by a couple of ticks and still allow me to capture 2 points before the S/R level. And to answer your second question, I know other people are looking at the same thing. That is why I started trading this way with options years ago. I don't mind if others know what or why I am doing this, the more the merrier. I use to see traders doing this same thing all the time trading IBM and QQQQ's. I still believe these traders to be some of the best in the field so why wouldn't I want to trade the same manner?

Unfortunately I still cant see the significance of your recent levels looking at my charts, but ok. How do you act if market opens below your short level, or above your long level. Do you skip those trades then?

Saico

 

[4re]

Quote from saico:

How do you act if market opens below your short level, or above your long level. Do you skip those trades then?

Saico

Like yesterday my long was hit in pre market just as I was bringing up my charts. I went ahead and took it. If it happens during the night while I am sleeping I just skip it. The same trade might come into play after the opens also. Between my brother and I we took the same trade 3 times yesterday and all of them made at least 2 points. This isn't always the case but I have taken the same trade 2 or 3 times in one day several times with success.

 

[sandygray66]

How funny that you're also a fellow ex-TIer. It seems that the vast majority of fellow TIers I've had contact with have gone their own way from what's taught at TI. Either they are adding their own filters (like I have) to make the signals produce a higher win rate or have gone the opposite way, as you have.

I have thought in the past about stopping out and reversing when I have a failed trade because inevitably the follow-through in the other direction is at least as great as my stop loss was. On the divergence trades I enter, I try to make sure my stop is at least .5 beyond the prior low/high on which the divergence is based (which is the margin you use beyond the S/R to trigger an entry).

So it sounds like you don't use pre-set buy-stop or sell-stop limits for entry, but instead watch how the action occurs at your S/R levels to determine if you're going to enter. Is that an accurate assessment?

How long have you been trading this S/R breakout method (after you gave up on the TI method)?

 

[4re]

Quote from sandygray66:



So it sounds like you don't use pre-set buy-stop or sell-stop limits for entry, but instead watch how the action occurs at your S/R levels to determine if you're going to enter. Is that an accurate assessment?

How long have you been trading this S/R breakout method (after you gave up on the TI method)? [/B]

Yeah, it is kind of funny how some people have gone away from TI with their own little systems. I feel sorry for the people that just stick with them for signals only. From what I saw those people were generally losing more than not.

I do use pre set entries which are what I have been posting. It is my exit that I use descretion on. If my moving averages look right I will stay in and ride it until I feel uncomfortable. If I get to 1 1/2 points and it starts reversing I will go ahead and take my money cause I hate to see a winner turn into a loser. The problem with the ES trading is there are so many people taking 2 points a trade it gets hard to get more than that, especially on range days. In options and staocks you could trade the daily charts and get in bigger trends. So that is why I mainly shoot for 2 points. But I don't jump in and out all day like the TI guys do that is nervewracking to me. I started trading breakouts about 12 years ago when a friend of mine who was a market maker for IBM told me it was the most basic and consistant way of trading. I have just had to make small modifications to my system for trading ES. The hardest part was look at intraday charts. I know TI use that 1 minute chart but to me it looked like garbage. Too much moise in it. Now I use a 3 minute while I am in a trade but I look farther out when I am planning my trades. The 15 minute seems to be the most accurate for me. Also the only indicators I use on my charts are Bollinger bands for volitility and 20/60 day moving averages. Nothig else, I like my charts clean. How about you?