Spydertrader's Jack Hershey Futures Trading Journal

Status
Not open for further replies.
Quote from bi9foot:

Since I am looking for pt3 channels, one thing I do during the day is I draw a RTL where I am anticipating a pt 3 channel to form. I use the volume to do a best guess as to where the line should be. Generally I am pretty close.

This gives me a visual reminder of what I am anticipating.

Attached is a video clip recored at 16x from around 3:40pm this afternoon. This has been the closest I have been, with the pt 3 forming almost right at the line I put in about 2 bars earlier. As the price was getting close to my line, I was watching the DOM and picked a price based on a wall that I thought was going to be the turn, price went 2 ticks below the wall and bounced.

I am still not very good at reading the DOM. Was this sheer luck? I think not. Pretty neat when you use the volume to guage the kind of price movement we can expect.

Just a question on entering a trade here, should I wait for the bounce before entering into a position or try to enter when price is at the wall?

Video link
http://rapidshare.com/files/58076367/9_24snap.avi.html
More...
vn.

Regarding your question, I have only used the DOM a handful of times but when I did use it for P3 entries, I would enter as price sat on the wall and get out ASAP if the wall was being eaten through for a max -.25 loss. But usually It'd move up 1 tick pretty quickly from that point to get me to breakeven and beyond.
 
my chart so far...

ES2509.png
 

Attachments

Any comments on how you read this vis a vis change/continuation.

The prior bar is on decreasing volume, yet also an inside bar. Obviously, price is moving laterally during that bar and from prior close.

Is it legitamate to say the RTL was broke on increasing volume on the black doji bar? The argument for this is that the bar was on increasing volume compared to prior bar, the rtl was broke by 2 ticks and closed right on the line (as opposed to closing back inside the channel).

How do you read inside bars on increasing volume? They don't strictly fit the "rule" that laterals form on decreasing volume.
 

Attachments

Quote from bundlemaker:

Any comments on how you read this vis a vis change/continuation.

The prior bar is on decreasing volume, yet also an inside bar. Obviously, price is moving laterally during that bar and from prior close.

Is it legitamate to say the RTL was broke on increasing volume on the black doji bar? The argument for this is that the bar was on increasing volume compared to prior bar, the rtl was broke by 2 ticks and closed right on the line (as opposed to closing back inside the channel).

How do you read inside bars on increasing volume? They don't strictly fit the "rule" that laterals form on decreasing volume.
More...

Hi BM,

I would drawn the lateral like in the attached chart. Note the "decrease volume".

That channel turned out to be "wrong" (I had that channel too), I had to fan to create a new one (reused the previous pnt3).

I didn't "legitimated" the RTL BO on the Doji, what I did was to wait for price to BO my lateral.

Hope it helps :)

Best Regards,
 

Attachments

Status
Not open for further replies.
Back
Top