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

[ph1l]

I now have cancer in the oesophagus and op next week to remove that.

Good luck with the surgery. For my esophageal cancer surgery, I was hospitalized for two weeks, and it was about three months before I physically recovered completely.

 

[Relentless]

I haven't posted anything in quite a while so I thought I would post some trades today for consideration. First I will state some concepts about todays trades.

1) The goal here is to show how a trader with a small account can scalp and make over $100.00 net in about 1 hour of work.

2) The goal is to maintain a high win rate.

3) The goal is to do this on a 2 min chart and correlating it with a 5 min chart

4) MES will be used because the account is small. Of course the same thing can be traded on ES or in larger contract size for more profit if the traders account is large enough to do so. But I am going to assume this instruction is for a trader with a small SIM account. ROFLMAO

4) The method is to trade PB reversals. Let me explain. You got a down move, it can be 3 bars or 20 bar bars. The idea is; there is a bear move. Then there is a PB, trying to reverse that down move or it (i.e. the PB) can be caused by profit taking by the bears, from that down move. Now, the PB is an attempt at a reversal or profit taking. Now what I want to look for is an attempt to REVERSE the PB! That is a reversal of the reversal attempt. In essence it would be a continuation of the down move after the PB ended.

5) That is, I want a signal bar to show me that the PB is reversing and the original down move will likely continue down enough for at least a scalp of 1 to 3 points in MES.

6) I will be taking profits on a quick slice out of the middle once the down moves continues. I just grab the profits and don't worry about what happens later. The goal remember, is to have a high win rate and net at least 100.00, within about an hour of trading. It is trading small size because this is a small account. So, I don't worry about what happens afterwards.

Good saying by yours truly.. LOL: "The previous bar is gone, over with, the future bar is a mystery, but the present bar can make a difference."

So, I just don't worry about what happens afterwards. If you are a trader that hates missing out on bigger profits there is a way to do this by going for measured moves that render bigger profits. But that isn't the goal for these instructions. These instructions are for quick scalps, in a small account, with a high win rate, making enough money within an hour or so, to send the wife or girlfriend on a small shopping trip, or to buy some fishing bait to go fishing.

7) Here is the tactic. I want to look for a signal bar showing me the PB is likely ending and there will be a subsequent move at least enough for a 1 point scalp. On slow days that is usually the PT. On med volatility or larger volatility I can go for 2 to 6 points scalps. More often that not, it will be 2 or 3 point scalps, when there is enough volatility, or when there is a larger contextual move down such as a bear channel, or successful BO of a TR (trading range). Look back in my posts to see a definition of a successful BO of a TR.

8) So, here it is: In a down move I want to see a PB. It can be a 1 bar PB or it can be 2 ,3,4 or more PB bars. So, the PB is a reversal attempt of the original move. Now I am looking for a reversal attempt of the PB. In other words, I want the PB to fail and the original move down to continue. So I am looking for a PB reversal signal bar. Here is what I am looking for.

a) In the bullish PB from the down move I am looking for a bar that closes below it's midpoint and is closing below it's open. It is a sell reversal bar. It is not only a sell reversal bar but it is a BEAR SELL reversal bar. I would enter short 1 or 2 ticks below the low of that signal bar on the next bar which is my entry bar. It is a high probability trade for 2 to 3 points and maybe even more, depending on the context. It is even higher probability if there is a tail on top that is 1/3 to 1/2 of the height of the bar, no tail on the bottom, or if one, a very small one, The odds are also higher if the larger context is a downtrend such as a bear channel or successful BO south of a TR. And odds are good if the signal bar is at a DT top or top of a TR or top of a bear channel. It doesn't have to be but if it is, then the odds are increased for a successful scalp of 2 to 3 points or more.

b) In the bullish PB from the down move I am looking for a signal bar that closes below it's midpoint even if still a bull bar at it's close. I like to see a tail on top that is about 1/3 to 1/2 of the bar size. It is a sell reversal bar but NOT a sell bear reversal bar. Instead it is a sell BULL reversal bar. That is, the reversal attempt by the signal bar is failing. Therefore, it is a bull sell reversal bar, It has has good odds of rendering at least a 1 point scalp. Bigger odds especially, if the larger context is bearish such as a bear channel and it is at the top of the channel (although it doesn't have to be it can be in middle of the channel ...just lower odds). Also, higher odds if it is in the context of a successful BO south of a TR. Or DT a the top of a TR. But it can take place in the middle of the trading range with decent odds of a successful scalp. If it takes place in a TR it needs to be a TR range as least as broad as 5x the size of a min scalp (1 point). I will short 1 tick below the low of this bull bar and try to capture at least 1 point maybe 2.

Below are two charts depicting trading a reversal of a reversal. That is, a reversal of the PB in a bear trend with the PB being the reversal and the signal bar reversing the PB for a scalp. I took these trades this morning and hastily made some annotations. If you think through what I have written above, and look at the charts, you will see the opportunities, some of which I am sure I missed out on. It is hard to trade and at the same time write my thoughts down, as the session progresses. It was 12 trades in total. All winners.

This requires quick decision making and it is tiring for someone my age so I am good for about an hour or two trading like this on a two minute chart. After that I need a break. A younger person, full of boundless energy, might could trade this technique the entire session and send the girlfriend to SAKS Fifth Avenue in lieu of Wallmarts! ROFL.

The technique is good for any time frame so it can be traded on 5m or 15m charts etc. I have included a 5 min chart so one can see the trades within that context but understand the 5m chart isn't necessarily showing the technique. It is just posted only as an additional perspective of how the trades went down. The TF one trades on is the TF one looks for the technique.

Enjoy or deny the technique I don't care. Means nothing to me. I am just posting showing how a trader with a small SIM account can trade 1 contract and make 100 bucks in an hour or so. Pretty sure that SIM money won't go over good at WALLMARTS LOL. Want more money and have a large account? Trade bigger size, maybe bigger TF or go to ES. It is all the same. Gross was +$148.75 Net after commissions on 12 winning trades +$132.50

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Welcome back!

Time spent on ET can be of value again.

 

[volpri]

Welcome back!

Time spent on ET can be of value again.

Thank you. That is a very nice compliment.

 

[speedo]

Sidetracking for a mo.....
I've stopped drinking coffee, bugga. I enjoyed a cup and the walk and the outing but I had cancer in and around my ear which after a painful operation under local anaesthetic looks like all but gone.
I now have cancer in the oesophagus and op next week to remove that.

The coffee has an effect of making me feel relaxed but at the same time seems to make my heart pump faster, kind of a contradiction, feel good but feel anxious.

Yeah, I enjoy coffee but its affecting my heart.
Was in hospital this week and a surgeon told me that symptoms of a fluttering heart (not a strong methodical heart beat) is becoming more common and he didn't know why.
My guess it's maybe coffee as it is very popular these days, coffee shops everywhere.
Anyway, having an operation with an irregular heart beat is dangerous, can lead to strokes on the operating table.

Where I am in Perth, no vax passports required for anything.

All the best Mickey. You might want to explore some Chinese Qigong, it sure as hell won't hurt. I can recommend The Way Of Energy by Lam Kam Chuen and The Healer Within by Roger Jahnke for ancient healing practices.

 

[Illini Trader]

Sidetracking for a mo.....
I've stopped drinking coffee, bugga. I enjoyed a cup and the walk and the outing but I had cancer in and around my ear which after a painful operation under local anaesthetic looks like all but gone.
I now have cancer in the oesophagus and op next week to remove that.

The coffee has an effect of making me feel relaxed but at the same time seems to make my heart pump faster, kind of a contradiction, feel good but feel anxious.

Yeah, I enjoy coffee but its affecting my heart.
Was in hospital this week and a surgeon told me that symptoms of a fluttering heart (not a strong methodical heart beat) is becoming more common and he didn't know why.
My guess it's maybe coffee as it is very popular these days, coffee shops everywhere.
Anyway, having an operation with an irregular heart beat is dangerous, can lead to strokes on the operating table.

Where I am in Perth, no vax passports required for anything.

Mickey, So sorry to hear about your surgery next week. I pray for success and healing for you. You make a great contribution at ET and consider us your friends. Is Perth pretty normal in daily life? In US we get pictures of brutal police kicking grandma on the sidewalk because she dared venture out. Are we being misled here about what it is really like in Australia?

 

[volpri]

Here are some trades taken this morning. Net was +324.25 after comm. Green boxes are entry point for PB reversals. I missed several trades..typing etc...and one time my durn chart just disappeared and I had to find it by them I missed out on a very good long entry. So, used another tactic to get something out of the move in Trades #2 and #3. Just look over the chart and read my annotations. These are long PB reversal entries. Remember, a PB is an attempt to reverse a previous move. If the PB is gonna fail there will be a PB reversal entry, usually. One may have to wait a few bars or profit or if it goes against one's position one can average down if they have a mind too. But the fact there was a PB reversal entry even if a few bars to the left it shows some strength. And price has a good chance of getting back to the entry and some more. So it makes averaging down feasible (at least to me ROFLMAO). My last trade was at 11:24 and I started a first trade at 9:22 so a couple of hours trading for net 324.25. Six trades taken. All winners. Largest trade size was 5 contracts. The trades are a mixture of PB reversals and other techniques. Especially when PB reversals are happening in a range. Also trades 2 and 3 were using BO techniques as a missed the PB reversal entry.

Here is also a 5 min chart showing what the trades looked like on a 5 minute chart. Trading TF was the 2 min chart. Gotta run to see about picking up the motor home from a new windshield install.

Remember I am a scalper. It is important to maintain a high win rate and to grab profits!

Enjoy if you have a mind too.

 

[traider]

If you average losers you never lose.

 

[NumberZ]

Enjoy if you have a mind too.

Obvious how much work you put into these posts. Thanks!

this is based on Al Brooks's stuff?

 

[themickey]

Is Perth pretty normal in daily life? In US we get pictures of brutal police kicking grandma on the sidewalk because she dared venture out. Are we being misled here about what it is really like in Australia?

Perth is very normal, I can't speak of Victoria, QLD or NSW because I never bother turning on the TV. No brutality here. No masks, no curfews, no lockdowns, no protests that I'm aware of, no food shortages, no travel restrictions, no restrictions on group gatherings, no restrictions on sporting events. The only condition they have is borders are closed off to some states and countries which have covid problems.
So in effect, difficult to get fruit pickers and the mining companies are finding it difficult to get staff from out of state, so it's slowing production down a tad.
Currently in all Western Australia, there are only 3 known people with covid19.

 

[NoahA]

I started a first trade at 9:22

Question please. I notice your first trade was for only 1 contract and you had to scale in. Other places you start with 4. Is there any reason for this? First trade of the day can be tricky if the market hasn't yet given you a clue about what type of day it will be. Is it something along these lines? Does the size of your initial entry depend on your confidence level?