T-REX Journal - "Scalping 101"

[hoodooman]

what about the sar?

 

[stkcowboy]

I notice it is a chart of the $SPX: yet you are looking for trading opps in the ES.

 

[T-REX]

While intraday charts alone can not give the big picture they do however give us insight into the "here and now" of price action.

If you missed yesterday's breakout you were given another chance to capture some small intraday price movement to the upside.

Contrarian opinion only afforded you about 3 minor opportunities to capture about a point while on the other hand the long side offered up at least 5 opportunities!

Odds say go with the greatest possible opportunity to make profit with minimal risk.

 

[T-REX]

Quote from hoodooman:

what about the sar?

Sorry I missed that.

I use the SAR along with the MACD to get a feel for the "miniture" cycle withen the current trend. Sometimes the SAR can give clues as to where the market may be headed. This is a little known and less talked about strategy. I will cover more on this subject later on in our discussion.

thank you for your question.

 

[T-REX]

Quote from stkcowboy:

I notice it is a chart of the $SPX: yet you are looking for trading opps in the ES.

Correct!
Great observation.

We derive our EOD (End-of-Day) price inputs from the $SPX.

For all intense purposes you are correct. I meant to post the ESH4 instead. However, this chart will serve our purpose for the time being. I will Post the ES chart later.

 

[T-REX]

Here is an example of how to use this 1 min chart to extract $$$ from the market!

Taken from "ES Swing Trade Competition Journal"

http://www.elitetrader.com/vb/showthread.php?threadid=26022




--------------------------------------------------------------------------------
Quote from T-REX:


Yesterday (22 Dec 2003)
L 5 ES @ 1084.75
c 5 ES @ 1089.75
________________
TOTAL = +5.00 Points

5 X $250.00 = $1,250.00 profit


Today (23 Dec 2003)
L 5 ES @ 1086.75 (held overnight from yesterday)
c 5 ES @ 1092.75
________________
TOTAL = +6.00 Points

6 X $250.00 = $1,500.00 profit



5 X $250.00 = $1,250.00 profit (Yesterday)
6 X $250.00 = $1,500.00 profit (Today)
___________________________________
TOTAL 11.00 points in 2 trades in just 2 days = $2,750.00


Now take a closer look at yesterday's 1 min ES Chart:

 

[hoodooman]

Yes but where did you buy and why?

 

[T-REX]

Quote from T-REX:

Here is an example of how to use this 1 min chart to extract $$$ from the market!

Taken from "ES Swing Trade Competition Journal"

http://www.elitetrader.com/vb/showthread.php?threadid=26022




--------------------------------------------------------------------------------
Quote from T-REX:


Yesterday (22 Dec 2003)
L 5 ES @ 1084.75
c 5 ES @ 1089.75
________________
TOTAL = +5.00 Points

5 X $250.00 = $1,250.00 profit


Today (23 Dec 2003)
L 5 ES @ 1086.75 (held overnight from yesterday)
c 5 ES @ 1092.75
________________
TOTAL = +6.00 Points

6 X $250.00 = $1,500.00 profit



5 X $250.00 = $1,250.00 profit (Yesterday)
6 X $250.00 = $1,500.00 profit (Today)
___________________________________
TOTAL 11.00 points in 2 trades in just 2 days = $2,750.00


Now take a closer look at yesterday's 1 min ES Chart:

 

[T-REX]

Now that you have seen the 1 min chart from yesterday it should become clear that trading within the overall trend is most profitable on shorter-term time frames.

In a Nutshell: Buy the intra-day dips in an uptrend!

 

[T-REX]

Quote from hoodooman:

Yes but where did you buy and why?

the entries that I previously posted is where I traded.

Why? Because we are still in an uptrend with upside room to go.

This is a great segway into our next discussion on how to use The Swing Vix in connection with the intra-day SCALP METHOD.