Techniques for Day Trading the ES, NQ, YM, MES, MNQ, and MYM
- Thread starter volpri
- Start date
That is a reasonable trade and makes good logical sense. Nothing wrong with that trade. We got Gap up open followed by 4 bull bars (well one was a bull doji) then a small bear “implied pullback”. Remember, an implied PB is an actual PB on a smaller time frame. That is, if you dial down to a one minute chart you will see that the bear bar was actually composed of several bear bars with lows below the previous bars low. That concept is part of the technical definition of an actual PB. So, while on a 5 minute chart it is only an implied PB it does denote strength because it’s low did not go below the low of the previous bar.
So, your entry bar was an H1. Background bullish. Tails on the bottom of 3 prior bull bars indicating buying pressure. Chances are there would be at least a little more upside enough for at least a scalp That was a good trade. Problem for me was I was still snoozing...LOL. Only thing I might have done different is I probably would have had a wider stop loss giving me room for averaging down long if we would have gotton some adverse movement. Sometimes on the gap up openings you can get a deeper PB if PA is going to end up being a broad Broad Range day.
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Thanks. I don’t know if I would go that far with it but I do hope it helps traders. I am just showing how I trade.
Thank you,
it pertains to the 24 hour (or overnight) chart. I like to use the 24 hour chart, even though I trade USA times.
Question 2 actually I did short the on the bar of your first red arrow. You are just showing the PA on a 24 hr chart. But my short was a scalp and corresponds to my second trade average down trade on my RTH chart above (blue lines on my RTH’s chart denoting entries and exit.) My initial short on the blue line entries was the previous bar before your first red arrow bar. I then added averaged down to that initial entry on the next bar and then covered both shorts on the same bar as the second averaged down entry. The reason I did not short on your second red arrow bar is because that bar is the same bar as the bar marked H1 on the RTH’s chart. I did not go long on that H1 but waited for a second entry H2 because of that strong two-legged push down from the high of the session. I want to make reasonably sure the slide south is over with and we are likely headed back up.
Why didn’t I hold my two shorts (trades 2 and 3 ...orange and blue lines) for more of a push down?
Well we opened gap up. Price races up then races down. That is Trading Range Price action. However as mentioned earlier I could not draw the range box until 20 bars (which we had) and a move back up (which we didn’t have until the H1 bar). In addition, we are almost at the low of the opening bar of the RTH’s. I want to be short but since I don’t know if we are going up back to top completing the Range confirmation until that H1 bar shows me ...well best to hold those shorts lightly And just scalp. Which is what I did. If we got a sudden break south after my scalp entries you can bet I would be sliding my exiting down on the DOM.
Thanks for responding and comments.
I understand now.
By scalp, you mean RR is aleast 1?
volpri,
what are you thoughts on this?
Bearish context. Strong bear bar closing below double bottom support and pivot S1. Technical entry market order at close of bar, red arrow, and stop loss at orange arrow.
what are you thoughts on this?
Bearish context. Strong bear bar closing below double bottom support and pivot S1. Technical entry market order at close of bar, red arrow, and stop loss at orange arrow.
Now I was not going to talk about the 24 hour chart on today's PA but you done went and got me talking about it so I might as well explain "how" I would have traded my first few trades had I ONLY BEEN LOOKING at a 24 hr chart and not the RTH's.
Here is your chart shown by my platform with my notes. From a 24 hour perspective I would have been short right after that wedge top and riding those 2 legs down or riding exiting and entering again. But here are the two main entries I would have been looking at taking had I been looking at the 24 hr chart. But alas I was still snoozing. LOL
Here is your chart shown by my platform with my notes. From a 24 hour perspective I would have been short right after that wedge top and riding those 2 legs down or riding exiting and entering again. But here are the two main entries I would have been looking at taking had I been looking at the 24 hr chart. But alas I was still snoozing. LOL
Thanks for the post.
I argee with your reasoning on the short.
I short at red arrow with stop at orange arrow and profit target at purple arrow and wait. My profit target was not hit, so I take the loss here at stop out at orange arrow price. My target was the a few ticks above the low of opening bar.
No, in this volatility since all this corona stuff I consider a scalp 1 to 12 points. Normally, I consider a scalp to be 1 to 8 points in the ES.
As concerns R:R (I say it as Reward to Risk) I have at least three risks for each trade.
One is the initial risk which is the logical smallest risk. I want to give myself enough room to average down if I get the OPPORTUNITY ...ROFLMAO..I don’t want to get stopped out before the trade can work in my favor even if I had a not so good entry. Anyway, that is where I will put my initial SL. However, please understand that point is not carved in stone. I will move it around and adjust it based upon the unfolding dynamics of price action in the trade after the position has been taken. As price moves and as the trade unfolds I may tighten that initial risk or I may widen it. Also, as I average down my SL obviously gets changed. I know the guru’s say never change your stop loss. Well I do because I use price action SL’s and not money SL or a set point or tick SL’s.
The second risk is the absolute max before I bite the bullet and take my loss. Especially in an averaged down trade. This is mostly mental and my initial risk gets slidden to that point if need be. If I am feeling giddy it can be quite wide. So some days it seems like I can grab the market by the tail and swing it around. Other days it is like the market grabbed me by the tail and swung me around and I could not recuperate.
The third risk is the ACTUAL risk I endured while the trade was under way and it is basically the max adverse excursion it went against me plus 1 tick.
Now as the trade unfolds and I am getting ready to think about exiting I MAY be paying closer attention to actual R:r as I want my R:r to be at least 1:1. If my entry was precise I may end up with a very small risk and a larger reward. Sat 5:1 or 10:1. Much depends on my entry precision and if I averaged down...etc. See the trade may go 2 ticks against me and then rockets off in my direction for 20 ticks or 5 points in the ES then I exit, I would consider my actual risk as 20/3 = 6.66:1 To be honest I really don’t pay much attention to R:r. If averaging down once I get my last entry made I just visibly watch price and try to make a profit on all my contracts and at least the commission on the first entry. I focus more on win rate than R:r.
I know guru’s will trash that idea. Well they will just have to do whatever they have to do. It works for me. The market is dynamic by nature. Why should my risk be carved in stone? I know the max I willing to lose. That is where PA proves my premise to be wrong. Then I am out. Double or triple up and go with PA in the correct direction. Scary not easy to do but surprisingly simple way to get back a loss quickly and be in the money.
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