Well, Volpri, based on my understanding of your trading method, even if you moved the PT lower, you will not allow the bar to the right of your actual exit bar happen, risking wiping out your 6 contracts revenge trade to take a loss, right? So, not matter whether you moved your PT, you prob. would have exited around where you exited.
Techniques for Day Trading the ES, NQ, YM, MES, MNQ, and MYM
- Thread starter volpri
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Thank you for posting this live, one question, on this trade, since you have a SL 3039, while your defined top of the range is 3053ish, so, where would you add to your short if you were not immediately taken out by your PT? Let's assuming you will adding one more contract. Thank you!
I would generally add first averaging down contract 1 point higher (if I was looking to average down) than my original entry, which would bump up my BE 2 ticks. I would add another contract two or 3 points higher from my new BE. That too would bump my BE up. I would add another contract 3 points above that BE. Then if PA breaks out of the top of the range I would probably add one more time betting it will go back into the range (closing the BO gap) at least enough for a scalp. I might lose on my first entry or two and make money on my others. Or I might make money on all my entries. I like to make at least a tick or two profit on my first entry. Of course when averaging down BOTH SL's and PT's have to get adjusted or I will likely get stopped out as I average down before the trade can work in my favor. PT also has to be adjusted as PA has shown some strength by the very fact that I averaged down so I have to be willing to bring my PT up nearer my last BE from all the averaging down. It is not a bad idea to run the TE once all average in to re-adjust SL, "give up" point, and PT. Then it is a matter of waiting.
This is based upon the tendency that 80% BO attempts out of the top of a range fail and price goes at least a little ways back into the range.
Averaging down is usually not a good idea in the last hour of the session (although I will sometimes do it) as you can run out of time before the trade gets profitable.
This is generally my averaging down points, however, not always, because much also depends on price dynamics (the how) it is moving as I average down. If with gumption against me I will space averaging down further apart. Price though in ranges often races to the bottom then races to the top and new traders go long at the top thinking big bucks. Then it quickly trades right back into the range within 5 bars. They got trapped in a long position. The 80% thing.
I just took a last trade for today. I straight 4 contract scalp. Will post it later.
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I understand the logic behind this set-up, but what scares me in trading it is defining the "give up" stop. Quite often price will indeed re-test at least the top of the range but first it will have a couple of strong bull bars above the range before it reverses.
How do you define the stop? A strong resistance above? Or number and strength of bars?
How do you define the stop? A strong resistance above? Or number and strength of bars?
Well first it wasn't a monopoly revenge trade LOL. It was just a matter of seeing I was on the wrong side and taking my loss and doubling up and going the other way. It is a procedure I follow.
No, I would not have exited where I did. I jumped out of the shower and tried to change things because of the dynamics of how price was moving. On my exit bar it was moving fast to my PT. As I peaked through the steamy glass shower doors I saw that happening and jumped out but could not get my hands dried enough in time to adjust for bigger profit. I really would have adjusted. Why? Well I was proven to be on the wrong side in my previous trade and now the bears are winning and pressing. So I would have gone with them. If price had slowly reach my PT then I would have taken my profits right there. But look at the chart. From bar 12:05 to my exit bar every bar was held below the 20 ema. The bulls on every attempts they tried, could not get price back up to the 20 ema thus every bull attempt to reverse that big bear bar at 12:00 just before my 6 contract entry FAILED. All the way down to my PT gaps between high of bars and the 20 ema. Bears are stronger. This is going on down. But when you are in the shower well you are in the shower. LOL
I got to go paint but will address your question later.
And if you don't mind I have another question: how did you define it as a range?
For me is was a broad bear channel at that moment. Depending on how you draw the channel price just broke out or just entered the higher third of the channel. (I prefer to adjust the channel using the lows usually, in my experience it gives a better picture than keeping the channel based on the swing highs and adjust only after lower lows.)
For me is was a broad bear channel at that moment. Depending on how you draw the channel price just broke out or just entered the higher third of the channel. (I prefer to adjust the channel using the lows usually, in my experience it gives a better picture than keeping the channel based on the swing highs and adjust only after lower lows.)
By the way Volpri, don't feel pressured to answer questions immediately (or at all even). You mentioned you wanted to take some time away from the pc so don't want to keep you hostage here 