Techniques for Day Trading the ES, NQ, YM, MES, MNQ, and MYM

Trading an actual PB AND an implied PB back to back within a trading range MES 5 min chart 12-22-2020:

By bar 9:55 we have been in a sideways move for 18 bars since the open. Bulls and bears are about even. Up then down. I like to see 20 bars to trade it as a range however, sometimes I will fudge a little. This is discretionary trading you know.. ROFL.

So, anyway I decided to trade this as a range. Up to this point it certainly is range behavior. In a range I want the height of the range to be at least 3 times the size of a minimum scalp, which is 1 point in MES or ES. This range is around 10 or 11 points broad so it meets that. Next it needs to be preferably at least 3 times as broad as the average size bar. Just a visual glance on this will suffice. I roughly figure the average size bar as 4 points. So 3X =12 points. Range is around 11 points broad. That is close enough to make money scalping 1 to 8 points.

Bar 9:55 is an actual PB so I short on bar 10:00 and grab a 1 point scalp, just to start the day as my carcass got out of bed late and was not awake real good yet, as got to drink my morning coffee. But it is good to start off with a winner. So this was a 1 point scalp on an actual PB. Now notice bar 10:00 went on down after my exit. So, look to the left and see bar 9:40 at the top of the range. From that bar until the close of bar 10:00 we have basically a two - legged bear move. Down first leg then actual PB (which I traded) then down some more on bar 10:00 (second leg down). So down..PB..down some more.

So, we can say got a bearish move from top to bottom of the range in the form of a two-legged move. Now look at the close of bar 10:00 by the time it closed it was a bear doji with a big tail on the bottom. That simply means that two legged move down was now in a PB on a smaller TF. An implied PB. So what do I do? I short the close of the doji on the next bar 10:05 expecting that since this is an implied PB on a smaller TF AND the larger context is a range that we will see enough subsequent down movement at some point for a scalp. From the point of my initial entry on bar 10:05 up to the top of the range is my averaging down area. So I add more short on the same bar as it moves against me. Then I add more on bar 10:15. By this latter bar we are near the top of the range. So I wait for it to break south. I exit and cover the entire position on bar 10:25 making a profit on all contracts.

This is an example of trading and actual PB and an implied PB on a 5 min chart in ranging behavior.




implied PB in a range.jpg
 
Last edited:
volpri said:
Trading an actual PB AND an implied PB back to back within a trading range MES 5 min chart 12-22-2020:
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Volpri, can you also show us the 1 minute chart of this? I find it really helps to see how you are entering. Thanks.
 
Sprout said:
Yeah, worked as an engineer for three years on his first job. He plowed into stocks, applied his mind and built a way of interacting with the market that ‘extracted the full offer.’ He never had to work 9-5 for the rest of his life.
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It seems that Jack Hershey was inspired by others' work (not to diminish his own merits, nor spydertrader's who was the first to present in a more understandable way Jack's "quality stocks" method of trading):

There is still another way, though, to “sensitize’'' yourself to
a speculative stock ( or to any stock, for that matter), which
should serve you well. It is used by many successful and active
traders and can be broken down into the six rules which follow.
Head them slowly—and follow them to the letter when you trade
or invest. They also happen to be the cream of the rules of most of
the courses and investment guides offered, as well as of many
NOT offered—rules which have been acquired through hard and
long experience. Here they are:

Rule 1. Choose a fast-growing industry, one whose pro-
ducts or services (from what you read in the financial papers
and magazines) will be in greater and greater demand for the
next decade or longer.

Rule 2. Select a small, not too well-known stock in that
industry—one which is showing remarkable gains, and whose
price is still very low in comparison to the price of the leading
stocks in that industry. Do not select a diversified stock. It’s
too safe to grow fast. And do not buy it on margin.

Rule 3. The stock should possess no more than 2,300,000
shares, and preferably as little as 1,000,000, unless its price is
less than $4 a share. It can be volatile then and move fast
when it does. If it is an over-the-counter stock, choose one
with a price of less than $10 a share, if possible.

Rule 4. Don't buy a speculative stock on rumors of mer-
gers, military contracts and other possible one-time windfalls.
Buy it only on its solid merits as a fast-rising small stock in a
fast-rising solid industry. And buy it after it has fallen at least
two days straight, and on a big volume close to, or more than
twice that of the preceding day. (On over-the-counter stocks,
of course, you cannot get the volume.)

Rule 5. Buy the stock, and then divest yourself of all senti-
mentality toward it. And tell nobody about it. But whether
you do or not, ignore completely any sudden drop it does—un-
less you buy more of it. Don’t short sell it (or “buy” it to go
down). If it is a volatile stock, it will make sudden frightening
drops. But control yourself and don’t sell it!

Rule 6. Sell it each time it makes a significant rise, and
then wait till it falls (for it will) and buy it again. But still
don't buy it to go dawn (short sell), for it might rise much
higher than you expected and you will take a sizable loss.
Anyhow, if you have selected it according to the first four
rules, it will rise each time much more than it goes down; so,
you don’t have to "buy” it to go down to make money. But
when you buy it to go up, and it happens to fall heavily in-
stead (and nine times out of ten it might), you just have to
hang on to it and, within a few days, weeks or months, it will
suddenly zoom upward again and very likely double, triple or
quadruple in price.

Rule 7. Don’t sell the stock in fright upon bad news, for it
will fall low on that day and bounce back up within a few
weeks. Ignore the Doubting Thomases around you. The world
is full of pessimists and know-it-alls.

In the contemporary case to follow, you will see how you can
move into a fortune within a few years by following every rule of
those seven without altering one of them.

from Frank Rudolph Young's "Psychastra - key to ESP+ Control" (1968)​

:D
​
 
baro-san said:
It seems that Jack Hershey was inspired by others' work (not to diminish his own merits, nor spydertrader's who was the first to present in a more understandable way Jack's "quality stocks" method of trading):

There is still another way, though, to “sensitize’'' yourself to
a speculative stock ( or to any stock, for that matter), which
should serve you well. It is used by many successful and active
traders and can be broken down into the six rules which follow.
Head them slowly—and follow them to the letter when you trade
or invest. They also happen to be the cream of the rules of most of
the courses and investment guides offered, as well as of many
NOT offered—rules which have been acquired through hard and
long experience. Here they are:

Rule 1. Choose a fast-growing industry, one whose pro-
ducts or services (from what you read in the financial papers
and magazines) will be in greater and greater demand for the
next decade or longer.

Rule 2. Select a small, not too well-known stock in that
industry—one which is showing remarkable gains, and whose
price is still very low in comparison to the price of the leading
stocks in that industry. Do not select a diversified stock. It’s
too safe to grow fast. And do not buy it on margin.

Rule 3. The stock should possess no more than 2,300,000
shares, and preferably as little as 1,000,000, unless its price is
less than $4 a share. It can be volatile then and move fast
when it does. If it is an over-the-counter stock, choose one
with a price of less than $10 a share, if possible.

Rule 4. Don't buy a speculative stock on rumors of mer-
gers, military contracts and other possible one-time windfalls.
Buy it only on its solid merits as a fast-rising small stock in a
fast-rising solid industry. And buy it after it has fallen at least
two days straight, and on a big volume close to, or more than
twice that of the preceding day. (On over-the-counter stocks,
of course, you cannot get the volume.)

Rule 5. Buy the stock, and then divest yourself of all senti-
mentality toward it. And tell nobody about it. But whether
you do or not, ignore completely any sudden drop it does—un-
less you buy more of it. Don’t short sell it (or “buy” it to go
down). If it is a volatile stock, it will make sudden frightening
drops. But control yourself and don’t sell it!

Rule 6. Sell it each time it makes a significant rise, and
then wait till it falls (for it will) and buy it again. But still
don't buy it to go dawn (short sell), for it might rise much
higher than you expected and you will take a sizable loss.
Anyhow, if you have selected it according to the first four
rules, it will rise each time much more than it goes down; so,
you don’t have to "buy” it to go down to make money. But
when you buy it to go up, and it happens to fall heavily in-
stead (and nine times out of ten it might), you just have to
hang on to it and, within a few days, weeks or months, it will
suddenly zoom upward again and very likely double, triple or
quadruple in price.

Rule 7. Don’t sell the stock in fright upon bad news, for it
will fall low on that day and bounce back up within a few
weeks. Ignore the Doubting Thomases around you. The world
is full of pessimists and know-it-alls.

In the contemporary case to follow, you will see how you can
move into a fortune within a few years by following every rule of
those seven without altering one of them.

from Frank Rudolph Young's "Psychastra - key to ESP+ Control" (1968)​

:D
​
More...
Written 53 years ago? Where and when can I join this cult?
new-spine.gif
 
themickey said:
Written 53 years ago? Where and when can I join this cult?
View attachment 247398
More...
Volpri,

Since you tend to buy it sell and add to losers at your "opportune times" why not do a full trase set in real time.

You would state..1. my max positions are then a number of contracts

2. you would then say..buying 1 now at price
3. you would say adding 1 more now at price
4. then you would say. i put a limit order in to sell 1 or 2 or all contracts at x..or would u ne doing a market order?

My journal is about my trades. live trades. my journal is not about teaching people but if i was proclaiming sound methods then i would do some real time calls.

I find it suspect that after all of this time you havent done a true full on entry plan and execution of that plan and then an exit plan stated and an execution of that plan.

the reason is just like jack heresy. once you lock yourself into a trading corner and you must not be vague but specific and you make real trades off of unknown fluctuations instead of historical ones then your system should prove to be utter failure.

my whole point of stating this on your page is that you have had zero advancement in position sizes etc. you have actually gone backwards now stating u will be doing demo n live trades.

i am just trying to save some newbies from always adding to losing trades. this is what always costs me money. yeah in demo accounts where u keep adding and its not real of course u make money.

your bank roll is endless in demo and the pain is harmless
 
baro-san said:
It seems that Jack Hershey was inspired by others' work (not to diminish his own merits, nor spydertrader's who was the first to present in a more understandable way Jack's "quality stocks" method of trading):

There is still another way, though, to “sensitize’'' yourself to
a speculative stock ( or to any stock, for that matter), which
should serve you well. It is used by many successful and active
traders and can be broken down into the six rules which follow.
Head them slowly—and follow them to the letter when you trade
or invest. They also happen to be the cream of the rules of most of
the courses and investment guides offered, as well as of many
NOT offered—rules which have been acquired through hard and
long experience. Here they are:

Rule 1. Choose a fast-growing industry, one whose pro-
ducts or services (from what you read in the financial papers
and magazines) will be in greater and greater demand for the
next decade or longer.

Rule 2. Select a small, not too well-known stock in that
industry—one which is showing remarkable gains, and whose
price is still very low in comparison to the price of the leading
stocks in that industry. Do not select a diversified stock. It’s
too safe to grow fast. And do not buy it on margin.

Rule 3. The stock should possess no more than 2,300,000
shares, and preferably as little as 1,000,000, unless its price is
less than $4 a share. It can be volatile then and move fast
when it does. If it is an over-the-counter stock, choose one
with a price of less than $10 a share, if possible.

Rule 4. Don't buy a speculative stock on rumors of mer-
gers, military contracts and other possible one-time windfalls.
Buy it only on its solid merits as a fast-rising small stock in a
fast-rising solid industry. And buy it after it has fallen at least
two days straight, and on a big volume close to, or more than
twice that of the preceding day. (On over-the-counter stocks,
of course, you cannot get the volume.)

Rule 5. Buy the stock, and then divest yourself of all senti-
mentality toward it. And tell nobody about it. But whether
you do or not, ignore completely any sudden drop it does—un-
less you buy more of it. Don’t short sell it (or “buy” it to go
down). If it is a volatile stock, it will make sudden frightening
drops. But control yourself and don’t sell it!

Rule 6. Sell it each time it makes a significant rise, and
then wait till it falls (for it will) and buy it again. But still
don't buy it to go dawn (short sell), for it might rise much
higher than you expected and you will take a sizable loss.
Anyhow, if you have selected it according to the first four
rules, it will rise each time much more than it goes down; so,
you don’t have to "buy” it to go down to make money. But
when you buy it to go up, and it happens to fall heavily in-
stead (and nine times out of ten it might), you just have to
hang on to it and, within a few days, weeks or months, it will
suddenly zoom upward again and very likely double, triple or
quadruple in price.

Rule 7. Don’t sell the stock in fright upon bad news, for it
will fall low on that day and bounce back up within a few
weeks. Ignore the Doubting Thomases around you. The world
is full of pessimists and know-it-alls.

In the contemporary case to follow, you will see how you can
move into a fortune within a few years by following every rule of
those seven without altering one of them.

from Frank Rudolph Young's "Psychastra - key to ESP+ Control" (1968)​

:D
​
More...

Yeah,... no.

Jack was very forthright about his nfluences and author recommendations.

That author, book and ‘rules’ are not on that list.

The relationship of price to volume; specifically volume ‘leading’ price is a core tenet of his work which none of the ‘rules’ you attributing to him allude to.


That list seems more like a partial derivative of Wyckoff and tape trading.
 
tradeking007yahoo said:
find it suspect that after all of this time you havent done a true full on entry plan and execution of that plan and then an exit plan stated and an execution of that plan.
More...
It's not about the trades. It's a love of the process and addiction to the admiration the audience provides. In this place he has created an avatar of knowledge which more and more people are responding to.

Leave him alone and allow him the reality he has created for himself and others. Just watch and provide encouragement rather than criticism because it starts to get entertaining. The more he becomes the avatar the more creative and colourful the market analysis becomes because the illusion must be maintained for the subscribers who are buying into it.

There is an Al Brooks expert on every trading site trying very hard to be Al Brooks. I believe that's when you know they have missed the point.
 
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