T-REX Journal - "Scalping 101"

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Quote from dbphoenix:

Since all of this face-saving is being done in hindsight, in what way should the 60m chart have clued anyone in that the intraday trend was about to reverse?
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Per the rules outlined in the Trading Plan.
According to Friday's Trading Plan where was the recommended short?

Remember, the recommended price triggers are given pre-mkt.
At 11:15am did not the 5min bar close below the 40 EMA?
How does the "2 Bar Charlie SCALP METHOD" tell you to proceed on a day like this?

I believe you have answered your own question.:)

Also, although from time to time this journal may contain some realtime intraday trades this is not a track record journal but rather a mentor journal meant to give instruction and education regarding the Scalp method.:D


Thank you

T-REX
 
Quote from T-REX:

Per the rules outlined in the Trading Plan.
According to Friday's Trading Plan where was the recommended short?

Remember, the recommended price triggers are given pre-mkt.
At 11:15am did not the 5min bar close below the 40 EMA?
How does the "2 Bar Charlie SCALP METHOD" tell you to proceed on a day like this?

I believe you have answered your own question.:)

Also, although from time to time this journal may contain some realtime intraday trades this is not a track record journal but rather a mentor journal meant to give instruction and education regarding the Scalp method.:D


Thank you

T-REX
More...


The thing that is confusing to me, and possibly others is:
your post of 01-02-04 at 630a says the bias is LONG. Then you have a rule that says "ONLY trade in the direction of the bias". That means no shorts....correct?

At the same time, another part of that same post listed support and resistance levels and said that if the price went through your listed resistance, then use this as an opportunity to short. Well, which is it?
Did the bias change during the trading day (and how would one know this) and that allowed you to short, or do you allow shorts even when you say
ONLY TRADE IN THE DIRECTION OF THE BIAS ?

jd
 
Quote from T-REX:

Per the rules outlined in the Trading Plan.
According to Friday's Trading Plan where was the recommended short?

Remember, the recommended price triggers are given pre-mkt.
At 11:15am did not the 5min bar close below the 40 EMA?
How does the "2 Bar Charlie SCALP METHOD" tell you to proceed on a day like this?

I believe you have answered your own question.:)

Also, although from time to time this journal may contain some realtime intraday trades this is not a track record journal but rather a mentor journal meant to give instruction and education regarding the Scalp method.:D
More...

So if one is to follow "the plan" even though you say to expect an uptrending day, which turned out to be exactly the wrong call, what's the point in making the calls? As you say, this is "a mentor journal meant to give instruction and education regarding the Scalp method". It is not a "track record" journal. So I see no point in trying to impress people into ignoring the plan and following these "calls" instead.

As for the "real-time intraday trades", any trade posted to a journal is by definition a hindsight trade. Newbies should understand that very clearly.
 
Quote from JackDaniel:

T-REX: Think of the daily Trading Plan as a roadmap.
If you are traveling to a specific destination for the 1st time and are not familiar with the surrounding landmarks or alternative routes, you will be lost without a map. I have given you the "methodology" now I assist you with the Trading Plan so that you can correctly apply the method to your trading. The Trading Plan is NOT necessary in order to trade the method but it is essential in assisting those that have never traded before at all and need that additional assistance. Hence the trading plan is a roadmap telling you how to get from point A to point B.

Again the trading plan in NOT meant to supersede nor replace the "2 Bar Charlie SCALP METHOD" but rather is meant to be used as a guide to assist you in using the methodology.


JackDaniel: The thing that is confusing to me, and possibly others is:
your post of 01-02-04 at 630a says the bias is LONG. Then you have a rule that says "ONLY trade in the direction of the bias". That means no shorts....correct?

T-REX: WRONG! what that means is to always look for your initial entry point to be long in an uptrend and short in a downtrend.
You must remove your own personal bias about trading in order to broaden your scope of understanding. That is how you will be able to correctly interpret the daily trading plan. (See comments below.)

JackDaniel: At the same time, another part of that same post listed support and resistance levels and said that if the price went through your listed resistance, then use this as an opportunity to short. Well, which is it?

T-REX: It is simple. would you rather be short from the "low" of an up-bar or short from the "high" of an up-bar?
Change your thinking and you will be able to comprehend the method.

JackDaniel: Did the bias change during the trading day (and how would one know this) and that allowed you to short, or do you allow shorts even when you say
ONLY TRADE IN THE DIRECTION OF THE BIAS ?

T-REX: Again "ONLY TRADE IN THE DIRECTION OF THE BIAS" means when the bias is long and the intraday price action is still moving higher then you should be long. However when the intraday price action changes or shifts direction then you should be prepared to do the same. Static rules are not what discretional trading is about. The rules are meant to be a guide only. I'm trying to teach you how to "think outside the box" so that you might be able to read and interpret price action correctly as it relates to intraday trend.

jd
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Allow me to clarify:

2 Bar Charlie System (Screen & Chart set-up)


Tools.

Use the 60min Candlestick chart to find current intra-day trend.
Use the 5min &/or 1min Candlestick chart to time entry point.


Technical Indicators.

Use a 40-bar EMA.
Use a Stochastic Line Chart (14,3,3 time periods)
Use a MACD Histogram Line Chart (5,40,5 time periods)


Chart Rules.

When the 5 min bar crosses above the 40-bar MA = buy.
When the 5 min bar crosses below the 40-bar MA = sell.


Filters. (Are not necessary but are useful)

(1.) Wait for the low of the 60 min bar
to close above the 40-bar MA = buy.

(2.) Wait for the high of the 60 min bar
to close below the 40-bar MA = sell.


This is your main method!

The daily Trading Plan is just that, "a trading plan" designed to outline specific price levels that should coincide with the above
"2 Bar Charlie SCALP METHOD".:)

The method is both long & short depending on whether or not certain criteria has been met.

When I say -"trade in the direction of the trend" ....I mean just that- trade in the direction of the trend. However, there are times when it becomes necessary to do a "stop & reverse" and/or switch-up between long and short positions depending on whether or not the intraday cycle has shifted.:)

Thank You

T-REX
 
Quote from dbphoenix:

dbphoenix: So if one is to follow "the plan" even though you say to expect an uptrending day, which turned out to be exactly the wrong call, what's the point in making the calls?


T-REX: The market DID in fact trend higher and as a result a new 10-day high was posted. It just so happens that the market stalled precisely above the "Intra-Day RESISTANCE" handle thus signaling you to get ready to go short intraday.

dbphoenix: As you say, this is "a mentor journal meant to give instruction and education regarding the Scalp method". It is not a "track record" journal. So I see no point in trying to impress people into ignoring the plan and following these "calls" instead.

T-REX: In all fairness to you I have already answered this question in response to an earlier post.

dbphoenix: As for the "real-time intraday trades", any trade posted to a journal is by definition a hindsight trade. Newbies should understand that very clearly.

T-REX: db, I think you know better than to suggest that posting realtime trades in a journal during the trading session IS considered to be realtime. The only thing that is being done in hindsight is my "end-of-day" commentary.
More...

Thank you

T-REX
 
Quote from T-REX:

The market DID in fact trend higher and as a result a new 10-day high was posted.
More...

A 30m "trend" lasting only a few points hardly qualifies as an "uptrending day". In any case, you still haven't explained why you made the call in the first place. Is part of your "mentoring" an attempt to teach newbies how to make calls? If so, what were your criteria for making your "uptrending day" call?

Quote from T-REX:

I think you know better than to suggest that posting realtime trades in a journal during the trading session IS considered to be realtime.
More...

Just following your lead:

Quote from T-REX:

Also, although from time to time this journal may contain some realtime intraday trades this is not a track record journal
More...

If you don't consider "realtime intraday trades" to be "realtime", why on earth are you calling them "realtime"?

Quote from T-REX:

dbphoenix: As you say, this is "a mentor journal meant to give instruction and education regarding the Scalp method". It is not a "track record" journal. So I see no point in trying to impress people into ignoring the plan and following these "calls" instead.

T-REX: In all fairness to you I have already answered this question in response to an earlier post.
More...

Actually, you haven't. I'm still interested in your response.
 
Question about 60 min and 40EMA

low of ES on 60 min chart has been above 40EMA since middle of December so how could you possibly go short if price on 60 min chart has never been below 40EMA or
do you use 60 min bars and 40EMA from 5min chart?

thank you
alex
 
Quote from dbphoenix:

A 30m "trend" lasting only a few points hardly qualifies as an "uptrending day". In any case, you still haven't explained why you made the call in the first place. Is part of your "mentoring" an attempt to teach newbies how to make calls? If so, what were your criteria for making your "uptrending day" call?



Just following your lead:



If you don't consider "realtime intraday trades" to be "realtime", why on earth are you calling them "realtime"?



Actually, you haven't. I'm still interested in your response.
More...






Quote from T-REX:

The market DID in fact trend higher and as a result a new 10-day high was posted.
--------------------------------------------------------------------------------



Quote from dbphoenix: A 30m "trend" lasting only a few points hardly qualifies as an "uptrending day".

Quote from T-REX: It depends on your point of reference. A new high being posted IS in fact a continuation of an uptrend pattern.

Quote from dbphoenix: In any case, you still haven't explained why you made the call in the first place. Is part of your "mentoring" an attempt to teach newbies how to make calls? If so, what were your criteria for making your "uptrending day" call?

Quote from T-REX: Allow me to clarify something 1st. The "Bias" portion of the trading plan IS NOT meant as a predictor of mkt direction but rather is a calculation of the closing prices as measure of volatility and retracement (where applicable).
I apologize for not clarifying this earlier. Thanks for bringing up this point.

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Quote from T-REX:

I think you know better than to suggest that posting realtime trades in a journal during the trading session IS NOT considered to be realtime.

NOTE: I inadvertently left out the word "NOT" during my post yesterday as I was on my way out the door. I was not aware of this typo until you brought it to my attention. Sorry.
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Quote from dbphoenix: Just following your lead:



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Quote from T-REX:

Also, although from time to time this journal may contain some realtime intraday trades this is not a track record journal
--------------------------------------------------------------------------------



Quote from dbphoenix: If you don't consider "realtime intraday trades" to be "realtime", why on earth are you calling them "realtime"?

Quote from T-REX: Again sorry for the typo.

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dbphoenix: As you say, this is "a mentor journal meant to give instruction and education regarding the Scalp method". It is not a "track record" journal. So I see no point in trying to impress people into ignoring the plan and following these "calls" instead.

Quote from T-REX: In all fairness to you I have already answered this question in response to an earlier post from Jack Daniel.
(see below).


01-05-04 07:02 AM

Think of the daily Trading Plan as a roadmap.
If you are traveling to a specific destination for the 1st time and are not familiar with the surrounding landmarks or alternative routes, you will be lost without a map. I have given you the "methodology" now I assist you with the Trading Plan so that you can correctly apply the method to your trading. The Trading Plan is NOT necessary in order to trade the method but it is essential in assisting those that have never traded before at all and need that additional assistance. Hence the trading plan is a roadmap telling you how to get from point A to point B.

Again the trading plan in NOT meant to supersede nor replace the "2 Bar Charlie SCALP METHOD" but rather is meant to be used as a guide to assist you in using the methodology.


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Quote from dbphoenix: Actually, you haven't. I'm still interested in your response.

Quote from T-REX: There you have it.:)

Thank you

T-REX
 
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