It is late and I am tired so all I can say is I too have a hard time figuring out why I drew that range that way. It is actually drawn wrong on both charts 1m and 5m. Not sure what happen there. There was a day or two that I without meaning to do so accidentally moved or widen the range. I have no idea why it is the upper boundary. Just a mistake. But it isn’t even right on the 5 minute chart but closer to being right on 5.
I am sleepy right now. It is nearly 2am. When I can think clearly I will try to show how the TR on both charts should have been drawn.
It is late and I am tired so all I can say is I too have a hard time figuring out why I drew that range that way. It is actually drawn wrong on both charts 1m and 5m. Not sure what happen there. There was a day or two that I without meaning to do so accidentally moved or widen the range. I have no idea why it is the upper boundary. Just a mistake. But it isn’t even right on the 5 minute chart but closer to being right on 5.
I am sleepy right now. It is nearly 2am. When I can think clearly I will try to show how the TR on both charts should have been drawn.
I looked again at my TRs on both the 5m and the 1m chart. I am not sure why I drew them that way but it is without a doubt wrong in the end after the fact.
I am thinking that I was trying to show from a 5m perspective why I took a trade in what ended up being in the middle of the trading range on the 5m chart. If I recall correctly I am thinking I just drew the TR on the 5m thus highlighting the middle of the TR (after the fact) and then just went to a 1m chart with that same TR intact. That is to say I didn’t even draw the TR on the 1m. That first long trade actually had nothing to do with TRs. The TR on 1m just showed up that way because it was extrapolated from the 5m chart where it was drawn in.
The purpose was to explain why the first and third trade were trades taken in the middle of a range. That is a technique I sometimes use (which I call small-intra-bar probes up and down that can serve as support and resistance for quick small scalps that can end showing to be in the middle of a TR instead just waiting for a setup to trade a TR fringes.
After saying all, neither TR was drawn 100% correctly but the 5 min TR was more correct and when I went to a 1 minute chart the same 5m drawing was off. Your version of it was certainly more accurate.
That first trade taken a 5m chart had nothing to do with a TR setup as there were not 20 bars to the left of my entry. I just drew it in and it just showed the first trade as being in the middle. But when I went to the 1m chart with the already drawn range intact there were 20 bars to the left of the entry and on that 1m chart it was a BO out of the top of that very tight and narrow TR to the left of the entry.
I am not sure if I muddied the waters and have caused even more confusion with this post. Bottom line I was trying to highlight techniques to trade small scalps in the middle of what appears to be an evolving TR vs just fading tops and bottoms of TR. And I was showing two different TFs using the same TR rectangle.
Understand most of the time I am drawing in TR rectangles once I get two points top and bottom to draw them in. That usually means 3 legs. For example; a leg up followed by a leg down then another leg up. That then gives me two points top and bottom to begin drawing an anticipated TR that may not yet have 20 bars in it.
I extend that out with TR rays anticipating the evolving TR before it actually happens in PA however, that doesn’t mean I am trading it yet using TR techniques. I still like to see 20 or more bars in that anticipated TR (regardless of the legs) before using TR techniques. But sometimes I will fudge a bit and trade at 17 or 18 bars. LOL
I am not sure if I muddied the waters and have caused even more confusion with this post. Bottom line I was trying to highlight techniques to trade small scalps in the middle of what appears to be an evolving TR vs just fading tops and bottoms of TR. And I was showing two different TFs using the same TR rectangle.
Three legs vs two legs to anticipate and extend a TR rectangle out as a possible near future pattern that is evolving. The more legs the higher the probability the pattern is valid even if not perfect. ANTICIPATING AND EXTRAPOLATING TRs.
3 legs harder to see on same narrow 1m chart but they are there.
On 5m chart only one leg when i took that first entry. So it was not an entry based on TR techniques. However, at the top of the TR and top of last leg I would have no problem shorting the top edge of the TR because now is has become a sideways move with 3 legs up/down and 18 bars. Fudging a bit but good discernable 3 legs.
Out of curiosity I went back on Sept contract on that day of the above 5m chart just to see wht happened if I had of shorted at the top of that third leg and top of the TR. It was good for at least a 4 to 9 point scalp, depending on when I would have covered. I marked the chart up with the three legs .potential entries and exits. Notice actual risk was very little. This is why 3 legs 20 bars makes a good point to use TR techniques such as fading tops and bottoms. In this case it was 17 or 18 bars (a little fudge LOL) but because of 3 good identifiable legs and a good bear second leg to the left.
