Did you play the breakdown of the 1258.75?
The YM is looking over the edge of the abyss...trying to hold on....for 10...more...minutes...
The YM is looking over the edge of the abyss...trying to hold on....for 10...more...minutes...
S/R Emini Journal
- Thread starter 4re
- Start date
- Status
I didn't I was in and out all day. If I would have it would have been a busted trade the first time and then I could have broke even on the second try. I usually go for break even on the second try instead of going for more. So it should have been a break even day for me minus commissions. As it stands it was a breakeven day for me anyway but I got to keep my commission money.
Quote from hpeganz:
Will the rule of 10 work??
Interesting last couple of days, Huh...Well here are my numbers for tomorrow. Can't wait to see how it unfolds for options expiration. Yesterday might have been one of those bear rallies where they are trying to shake the short holders out of the market. I don't know for sure. One of the reasons I like to stay market neutral. Here are the numbers...
Long 1259.75
Short 1251.25
Have a good trading day, I'll finally get to be around for it. This week I have been trying to get things done so that I can go on vacation and relax.
Gary
Long 1259.75
Short 1251.25
Have a good trading day, I'll finally get to be around for it. This week I have been trying to get things done so that I can go on vacation and relax.
Gary
Even though this hasn't happened yesterday, I'll explain why this is still possible and using Martingale approach puts a trader in profit eventually 100%. On the chart you can see a WRB that happened on Wednesday, the shape of this wide range bar is almost perfect (only a tiny shadow at the top and long body), these price action formation means that on Wednesday demand has outstripped supply, it doesn't matter what was the REAL reason behind it (max pain or whatever else), most of us haven't got a clue what affects price oscillation in any given financial instrument, that's why our main interest is in the chart patterns. My S/R levels are the High and Low of these WRBs and I trade breakouts of these levels using Martingale strategy. In regards to Wednesday WRB range I estimated 1271.50 upon breakout of the High of the bar, that is simply based on my research. One can trade these WRBs intraday, in fact that's what I mainly do in the mornings and afternoons. Anyway, getting back to what has happened on Thursday. If I was to open a Long position upon breakout of the High of Wednesdays WRB I would have had a hard stop @ either 2-3% of my trading capital or maximum @ 1250.00 (!don't forget I am referring to cash index here!) and I would have been stopped out yesterday for something like a 10 point loss. One can ask - It's pretty normal for sellers to drive the price down after such a WRB, why did you enter a trade at the High of the WRB? The answer is that it does happen, but it does not happen all the time and if one was to look on the historical charts and made some observations as to what is the ratio between pullbacks and breakouts after a WRB would be able to understand my approach. Now, the stop's been triggered and I would wait for another approach of either the High or the Low of this WRB and double next position size, if it does not happen again I would double the next time and eventually (in my experience it does not happen more than 3 times) I get a 100% winner while offsetting all previous losses.
The bottom line is that healthy capitalisation and strict position management rules make this strategy work all the time. This strategy applies only to certain ranges of WRBs and will work forever, no matter how many of us use it.
Gary, I have posted this here as it relates to S/R based trading and I am certain it will benefit at least one person reading your journal, which I am fond of.
Romik
Perfect WRB has no shadows, if there is a small shadow at the top or bottom, then absolute High of candle is R and Low is S. There is a certain criteria that I use for intraday candle range, which has to have 4 pts Low to High (minimum or no shadows) and breakout PT 2 pts. As simple as that.
I could be wrong...and often I am...but this premarket up move feels like a bluff.
Ok, that sounds like it will be worth looking into. I also use T&S while I am in a trade or as soon as I am expecting a breakout of a chart pattern.
On another note last night I was reading through the book Getting Started in Chart Patterns. I came across something very interesting about flags. He says that the High tight flag is the most accurate pattern and the most profitable as well. I am going to copy that from the book and will put it on here this weekend. He tells how to trade it and everything.
- Status