Quote from easyrider:
Quote from Grob109:
There are three major opportunities for bracketing: The start of the afternoon trading; the open after the cash and futures synch; and A & R's(Announcements & Reports). Only the open is not a BO from neutral; the other two are. All are exempt from FBO, usually as a consequence of the application of the P, V relation.}
I understand the afternoon thing. Things are moving slowly. The opening and A&R's to me is total chaos. How can you establish a center from which to bracket and how do you know where to put the stops?
I'll post some of each for you as time passes.
Temporarily for the open, carry over your trend lines from prior close. They will only work part of the time, though. when they don't work you are more likely to havea bracket entry.
i look at firstfour (%min) bars and note the formation. The fifth bar often gives you an entry as the bare exceeds the prior bar. Looking at it as a bracket you can form alateral chanel of the first four bars often. Your bracket is set outside of that lateral channel.
I like to be in by fifth bar because volume is giving the market a pace that accumulates profits as rapidly as any time in the day. You also know that one part of the H/L for the day is coming into the picture as well. The scalping at the open is as stated but it is history fairly soon as far as an entry is concerned.
For A &R's, they are superimposed upon the market and dominate temporarily. You cannot assume that any of them will go with the established trend, if any. The trend is an intraday phenom and A&R's are just points in time associated with Quarterly or longer trailing data accumulations.
A 10am A&R sits on the late open period so your view of it as chaos is a possibility. I stretch the 5 min bars preceding the10am bar by looking at the INDU (2 min) with the ym04H one unit MA superimposed on it. We refer to stalls on this chart as "mud". There will be a center for the range of the mud; it has a corresponding ES value. Also look at the DOM. I haven't done an editied task on the DOM as yet for posting. It is a chapter of a book in length. For A&R stuff you correlate the contemporary bar lengths running on ES with the three digit DOM bid ask list. What you see is four digit values at the extremes of the DOM and the three digit values nearest the BBid/Bask. You will note that the three digit values span the current bar length. Pick the center of the three digit range when the series is spread over both sides of the DOM. Note if it isn't,you are already in a trade with exit trades already set on your electronic trading sheet.
In any case, set up your bracket entries whether or not you are in. As the 10am bar is coming up you can just look for the "lengthy" bar appearing on the INDU that is being lead by smart money one unit MA of the YM04H. Long BO is a "squeese" lead above the INDU bar. Short BO is a "stretch" below the INDU bar.
Lets say the lead is not apparent, that gives you more time to act when it becomes apparent.
for all of these opportunities the first order of business is getting into a place where you are in charge of yourself. The second order of business is experiencing the events in an objective talented orientation. Next comes participating during the time when you are composed and present. After that there is a long series of progressions that take you to a "business as usual" orientation.
You only get two opportunities a day mabe an additional A&R. you have told us where you are at his point. You have one of the three down cold. What is true is that you have a confidence about it. This is composure and a presence. The monitoring and emotional sets that sequence for you through this is worth writing in your journal or vertically on a 5 by 8 card in black. Black is beautiful. Hone it with good green notes; give yourself cautions in red. Staple the card in your journal after a few days and letter another black more refined card.
The chaos on the open and A&R's is your expression for a more difficult trade for you. From here on in you will make the right moves as early as is safe, strong and not risky. Each time you chose to take a trade, you will nail down more and more of your composure and strengths.
Two Grob109 things I used to do were flying a line canted at 30 degrees and running a 30 mile ridge at top speed right on the ridge at the max temps of the day. I think it helped me to better deal with the unexpected like getting flipped by the leading edge of a line squal or getting slammed down by a wind shear.
