Technical Trading Setups Journal

[NoDoji]

Quote from einstein:

I remember reading you used to use Keltner lines as targets. If you no longer use them as targets what do use now? next level S/R perhaps?

I use the next S/R level as a zone to possibly take profit.

The next S/R level to be tested could be a trend line (for counter-trend scalps) or a parallel channel line (for the next leg in the direction of an established trend) or the previous S/R level or the 20 EMA.

I sometimes place a hard target at those levels if the price action has been working back and forth in a range or channel. This may cost me additional profits, but more often it gets me out at a very good level before the exit gets crowded, and I then wait for the next setup.

More often, I wait for price to react to the next S/R level:

> If the reaction is a break of that level with conviction, I hold for the next level to be tested, generally moving my stop to lock in a certain minimum profit at that point in case the breakout fails.

> If the reaction is that price stops right there, I usually tighten my stop considerably to lock in my minimum profit.

> If price never quite gets there, the trade is either a scratch or a smaller profit than my minimum in the event a stop-and-reverse setup appears.

 

[NoDoji]

Quote from SteveH:

Donna, little off-topic here but whatever happened to that price action trading bot you were training to be NoDoji++?

[They can do really well when you maintain the discretionary control of when to take the initial entry (then let it go auto).]

Steve, the reason I initially got him started on the automation project was because I'd developed the first draft of my written trading plan and I failed miserably to trade all the setups, which meant my daily result was significantly less than my "what if I'd simply traded every setup and managed it according to the plan" result.

Once he got a very basic outline of the strategy programmed and started running it, I was able to see in real time how well the law of probabilities worked and learn over time to trust my plan.

Now I use so many nuances in my trading, trading in both directions and using several different setups that automating the process would take more time than it's worth IMHO.

However, automation for different strategies (longer holds) is still being tested.

 

[cornix]

Quote from NoDoji:


CF, I think this answers a question you asked me as well.

That's awesome. Thanks a lot, NoD!

You explain things in an amazingly accessible manner, you know? Should write a book on price action some day.

Will practice those aggressive pullback trades and see how it goes for me.

 

[dv4632]

Cornix, are you still trading ES?

I notice you were trading it late last year on your site but stopped talking about it in January.

It was very interesting to see your approach to ES, because mine is totally different. I went back through my own personal journal to the days you had charts for and compared them to the charts I had saved of my trades, and it was pretty cool. We usually weren't even trading the same moves, but it still gave me an idea I'm investigating. It's too bad you aren't posting about ES anymore. Though can't say I blame you... I think the day session range Friday was only 6 points!

 

[cornix]

Quote from dv4632:

Cornix, are you still trading ES?

I notice you were trading it late last year on your site but stopped talking about it in January.

It was very interesting to see your approach to ES, because mine is totally different. I went back through my own personal journal to the days you had charts for and compared them to the charts I had saved of my trades, and it was pretty cool. We usually weren't even trading the same moves, but it still gave me an idea I'm investigating. It's too bad you aren't posting about ES anymore. Though can't say I blame you... I think the day session range Friday was only 6 points!

Yes, I tried to trade it to learn something from bighog, with whom I keep in touch and who was very generous to give me some titbits and ideas about trading it, but soon realized that trading from 21:30 (my time) after full day of trading Euro is not the best idea.

So while I am in my current time zone, decided to concentrate on the Euro only.

 

[bighog]

Quote from dv4632:

Cornix, are you still trading ES?

I notice you were trading it late last year on your site but stopped talking about it in January.

It was very interesting to see your approach to ES, because mine is totally different. I went back through my own personal journal to the days you had charts for and compared them to the charts I had saved of my trades, and it was pretty cool. We usually weren't even trading the same moves, but it still gave me an idea I'm investigating. It's too bad you aren't posting about ES anymore. Though can't say I blame you... I think the day session range Friday was only 6 points!

I always get a chuckle when i read where ES sucks because it had a small range day.

How many will abandon a great wife when she says "I have a headache"

Try this as a remedy, trade ES, CL and 6E, something is going to happen between the 3 cats to produce what?

Trading actually is like being married............you either get to know your partner or you just split up for good and be happy. To stick with each other and bitch is a real drag on everyone involved............be happy!!! ES, CL, 6E all will be your sweetie if you understand their bad days as normal instead of complaining..........

 

[cornix]

Great to see you still visit ET, bh!

Yes, I personally dropped ES not because the market was bad, but just due to time zone being pretty bad to trade it.

Assuming I make a living by trading Euro, trading another instrument after a full busy day with FX is not very productive.

Other than that, ES is a good mkt.

 

[einstein]

Quote from NoDoji:

I realized that I need to elaborate a bit on this. If price is pulling back to the 1-min 20 EMA in a well-defined uptrend on the 5-min chart and a break of the previous 5-min bar takes price right into the 1-min 20 EMA, this is a likely bear trap setup on the 5-min and you can still trail the 1-min buy stop if that 1-min 20EMA holds as support. Make sense?

How would you handle a situation where the 20ema does not hold as support and you start getting closes below the 20 ema? In this situation assume the 5 min chart has not reversed to a downtrend but the retrace is looking a little deeper than expected.

 

[dv4632]

I'm actually not complaining... I'm just used to hearing other traders say ES stinks so was kind of assuming Cornix would say the same thing. I know most traders are looking for the most action and volatility. But as a developing trader I actually like the fact that ES is relatively slow and boring. I think NoDoji once said trading ES is like zen meditation compared to wild-n-crazy CL.

 

[NoDoji]

Quote from einstein:

How would you handle a situation where the 20ema does not hold as support and you start getting closes below the 20 ema? In this situation assume the 5 min chart has not reversed to a downtrend but the retrace is looking a little deeper than expected.

E, I don't have time to post charts, but look at CL today between 11:25 and 12:20 EST. You have what appears will be a pullback straight to the 20EMA on the 5-min when the 11:25 bar low breaks, but there's still some gas in the tank to the upside. Buying a break of the 11:30 bar high is a no-go for me, two-leg pullbacks are way too common for me to fall for that head fake bull trap. Price does indeed pull back to the 20 EMA and tries to resume the uptrend. We're now at a very weak, low-volume time of day and the momentum dies. Study the 1-min chart and notice that once the 1-min 20 EMA becomes resistance off a series of lower highs, the "throw-in-the-towel" setup appears. Short a break of the 12:19 1-min bar low, or short a break of overall support @ 108.89 if you feel "safer" that way. Initial profit target zone is the .50's because those damn .50's will get bought every time when the possible new down trend is still young. (ADD: .50's happened to coincide with a lower channel line as well.)

Make sense?