S/R Emini Journal

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Monti1a -

How can you tell if the pit is buying or selling from the sound? I'm sure you can hear the increased activity, but curious as to how you know which way from the sound.

Sandy
 
4re -

Regarding the BB method, yep, would have worked great today, but not so well yesterday, depending upon what you used for exits.

Are you proposing to still use a +2.00/-2.00 profit target/stop loss bracket for exits on the BB? Or an indicator exit?

Sandy
 
Quote from sandygray66:

Monti1a -

How can you tell if the pit is buying or selling from the sound? I'm sure you can hear the increased activity, but curious as to how you know which way from the sound.

Sandy
More...

Sandy, I do not use pit noise to tell me whether there is buying or selling.....although the pit announcer will often call out whether the major players (merrill lynch, goldman, etc.) are doing aggressive buying or selling....I use the pit noise to tell me the "INTENSITY" of the crowd in the pit.....this "intensity of the major players" can not be gauged from looking at the chart...so if you are only looking at a chart, you are missing the major reason for big and sustainable moves....the intensity of the order flow as measured by the aggressiveness of the buyers or sellers...

imho..there is not an indicator that you can place on a chart, even volume, that can tell you the aggressiveness of the pit...this is something you just have to listen for...

now in order to determine whether there is buying or selling...well that's where S/R comes in......if it's going up we can conclude that it's from buying...vice versa for selling........pit noise is a tool that will require you to train your ear for what to listen for.....but once you use it I guarantee that you'll never trade without it............hope that helps
 
Monti1a

Thanks for the follow-up about pit noise. I know that Hubert at TradeTheMarkets swears by it. I've never listened to it.

How do you use it in conjunction with S/Rs? Do you look for a "noise volume" confirmation after a breakout that it will continue? And if not noisey enough, that it was a fake breakout?

Thanks.

Sandy
 
Quote from sandygray66:

Monti1a

Thanks for the follow-up about pit noise. I know that Hubert at TradeTheMarkets swears by it. I've never listened to it.

How do you use it in conjunction with S/Rs? Do you look for a "noise volume" confirmation after a breakout that it will continue? And if not noisey enough, that it was a fake breakout?

Thanks.

Sandy
More...

Actually, I'm a member of tradethemarkets......Hubert's advice has really improved my trading....

I look for medium-to-high pit noise BEFORE the breakout, and I want to hear it remain medium-to-high after the breakout...if the noise level is not adequate, I will either sit on my hands or fade against the market...

The most important thing that I do is classify the type of open...if we have an open with loud pit noise, I'm looking to play breakouts...if we have an open with weak or quiet pit noise, I'm looking to fade against the direction of the market....sounds simple enough..however, it takes some time to know what to listen for
 
Interesting. I'll have to try it.

I receive the TTM nightly (almost) e-mails. I bought their CD-ROM a year ago or so, but never went into Hubert's room.

Sandy
 
Quote from sandygray66:

4re -

Regarding the BB method, yep, would have worked great today, but not so well yesterday, depending upon what you used for exits.

Are you proposing to still use a +2.00/-2.00 profit target/stop loss bracket for exits on the BB? Or an indicator exit?

Sandy
More...

The BB method is only to be used on range days and given the movement we had yesterday we were due a range day. If I would have been looking at my 15 minute chart this morning I would have known I was long at the high this morning. But hindsight is 20/20.

I really believe trading always seems to come full circle for everyone that last in this business.

1. You learn to read a chart
2. You learn about secondary indicators
3. You try everything possible
4. You realize everything you need is on the chart

Steps 2 and 3 is where most people fail in trading.

That BB method is simple to show but a little tricky to use. If you practice it it doesn't take long to master. But it should be the only indicator you use. Too much on your screen causes paralysis by analysis.

4re
 
Ahhhh.....truer words never spoken.....beware of paralysis analysis....and.....all you need is on the (price) chart.

After 10 months of pursuing this craft of daytrading futures (after 15 years in swing trading stocks and options), I'm inching my way towards #4.

Thanks for the reminder.

Sandy
 
Quote from sandygray66:

Ahhhh.....truer words never spoken.....beware of paralysis analysis....and.....all you need is on the (price) chart.

After 10 months of pursuing this craft of daytrading futures (after 15 years in swing trading stocks and options), I'm inching my way towards #4.

Thanks for the reminder.

Sandy
More...

It is very easy to get carried away with all the other indicators out there. They are very tempting. And if you master one or two of them can be very beneficial. But since they are secondary they are going to be behind the price action. I just personally don't use them myself.

Now I have shown my Bollinger Band theory and I have used successfully. I think if a person is learning the trading game it is easy to understand and practice. And it only needs one indicator to work. It is a little tricky to start out though so some practice is needed. Sure could have used it this morning that's for sure.

4re
 
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