Technical Trading Setups Journal

Quote from Xspurt:

I was scalping the noisy base off the 1m chart until I saw it was primed for the move, so I called Trade of the Day in the room.

I had the top as the target and told the guys to read a book.
More...


Please give us mere mortals a clue..:eek:

At what time did you see it would break?
And was the target based on a 100 pip move or something else?
 
Quote from Onra:

Please give us mere mortals a clue..:eek:

At what time did you see it would break?
And was the target based on a 100 pip move or something else?
More...

Follow the bottom arrow line to the left where it meets PA. That is the signal taken off the 1m chart.

At what time did I see it would break? I knew about 2 hrs beforehand that the down pressure was running into a bigger up wave. When we paused for so long on the 1m chart everything was coming together in a number of time frames for the big push up and that was my reason for calling a buy for the trade of the day. It wasn't a single time frame read.

Attached is the chart for top resistance on the 3rd push, 60m. I don't trade on round numbers so no it wasn't 100 pips will do nicely so exit. I am looking for a reason to enter and exit a trade and often the exit is a reverse trade.
 

Attachments

Quote from Xspurt:

Follow the bottom arrow line to the left where it meets PA. That is the signal taken off the 1m chart.

At what time did I see it would break? I knew about 2 hrs beforehand that the down pressure was running into a bigger up wave. When we paused for so long on the 1m chart everything was coming together in a number of time frames for the big push up and that was my reason for calling a buy for the trade of the day. It wasn't a single time frame read.

Attached is the chart for top resistance on the 3rd push, 60m. I don't trade on round numbers so no it wasn't 100 pips will do nicely so exit. I am looking for a reason to enter and exit a trade and often the exit is a reverse trade.
More...

Well..., hats off, sir and thank you for the explanation!
 
Quote from RedTankEra:

You keep the old channel to determine if the breakout is for real or a head fake as backtests usually develop as important tellling points in the markets. These backtests can occur on the channel formation itself, it's horizontal breakout line point or old formations that you must monitor during the breakout phase.

You can not only create channels/lines off highs and lows, you can also create them off shoulders.

Notice what price did after it broke the downtrend channel, it did not resist at the second shoulder line test, on the contrary, it broke it, and then found support by turning diagonal resistance into diagonal support which is precisely why we meant to breakout and not create a head fake aka breakout failure.

I find horizontal lines less reliable in markets because the market moves in waves, therefore I prefer my support and resistance to be of the diagonal wavery nature.
More...

Thanks for the explanation, I've read that before, about the h&s confirming a true breakout, change of trend, or just a head fake. I attached your chart showing X's suggestion of adjusting the channel to connect the lows after the breakout. I see symmetry and so many different options on where to connect channels, that I get analysis paralysis sometimes. What are the backtests showing exactly other than resistance becoming support? Or is that in itself the importance?
 
Quote from Onra:

Well..., hats off, sir and thank you for the explanation!
More...

My pleasure. I see you like Al Brooks material. My entries would generally be a bit earlier than Al's so they might seem foreign to you. I only know a little of his style but liked what I saw.

The main drawback with Al's context is also his strength - so much focus on the 5m chart. He has mastered that chart but it is trading through a keyhole. If Al put his analytical mind to seeing the 5m in a much bigger context then high energy moves would become more apparent in advance so you could resist the counter set up.

When a strong trend is in place that is bossed by a much larger time frame than the 5m chart, the 5m will have some great counter trend set ups that fail. One of the signs of a bigger boss is these failures occurring, hence reading the 5m chart will not always give you the information needed to identify where PA is going and why.
 
Quote from Xspurt:

My pleasure. I see you like Al Brooks material. My entries would generally be a bit earlier than Al's so they might seem foreign to you. I only know a little of his style but liked what I saw.

The main drawback with Al's context is also his strength - so much focus on the 5m chart. He has mastered that chart but it is trading through a keyhole. If Al put his analytical mind to seeing the 5m in a much bigger context then high energy moves would become more apparent in advance so you could resist the counter set up.

When a strong trend is in place that is bossed by a much larger time frame than the 5m chart, the 5m will have some great counter trend set ups that fail. One of the signs of a bigger boss is these failures occurring, hence reading the 5m chart will not always give you the information needed to identify where PA is going and why.
More...

Oh dear...
I just struggled through ± 1500 pages from his three new books and now it seems it's just the beginning :p
Much appreciated, Xspurt
 
Quote from jack411:

Thanks for the explanation, I've read that before, about the h&s confirming a true breakout, change of trend, or just a head fake. I attached your chart showing X's suggestion of adjusting the channel to connect the lows after the breakout. I see symmetry and so many different options on where to connect channels, that I get analysis paralysis sometimes. What are the backtests showing exactly other than resistance becoming support? Or is that in itself the importance?
More...

You are welcome.

It's a matter of styles, we all use different methods, rulers for the methods. I don't think there is one right way but mastering whichever way you choose or prefer. In the end is an art, always has been, I like to use my own brush.

Yes that was the importance, studying the backtest price action will lead you to the next wave.
 
Quote from Xspurt:

Yeah Cornix was saying a few guys on his blog had caught the 123 and wtg on that as it is a sound technique when set up properly. Cornix demonstrates a few valuable twists on the technique that he has developed.

I had the 50 level already mapped out but couldn't be sure about the exact timing, so I called this as a pop or drop level meaning it was going to be a major move either way and my expectation was up based on the 1 and 2 hr charts and probably the 4 hr.

I was short and reversed long on the first reaction on the left of the chart, reversed short on the double top and then reversed long on 51 so I didn't wait for the 123. The 1st reaction gave me the confidence 50 was good support and as soon as I saw green it gave me a tiny stop for a huge RR.

We were discussing this in the room before the 50 level set up and I was pretty sure this was going to be a big mover, but it wasn't until the 1 and 2 hr charts confirmed that I could see the 4 hr was going to boss the trade.

I very seldom take 123's or 2B's as I expect to be in the trade before those signals confirm so they kick my trade along.
More...

Thanks for the reply. I'll write more later. Just wanted to mention today's pullback on the 1-hour (3150) was a carbon copy of fridays....
 
Quote from Xspurt:

One of the signs of a bigger boss is these failures occurring, hence reading the 5m chart will not always give you the information needed to identify where PA is going and why.
More...
nice tip ,often feel doubt in these areas and don't act waiting for projected target and miss turns
 
You must log in or register to reply here.
Back
Top