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

[volpri]

Scalping as a general rule only works if one has the skills to recognize
the entries and can manage their emotional response when it goes against
them. In a trading range, scalping is easier because if your entry goes against
you, usually its not going far and you can scale into a bigger winner
In a breakout condition however, inexperienced scalpers are going to take a beating
because they do not recognize the condition soon enough to get out and minimize
losses. The result is that one big loss outweighs the small winners
In my experience, if you want to make a living at this, (eventually) you have to
have the skills to recognize WHEN to scalp and when to swing (and how to manage
both types of trades

You have to know what constitutes a SUCCESSFUL BO.

Novices are often times thinking a BO of a TR is successful so they will take a position in the direction of the BO not understanding that 80% of BO attempts in a TR will fail, thus they get whipsawed when price goes back towards the edge of the TR or enough into the TR to hit their SL.

When price is in a TR then one should use TR techniques, but once there is a SUCCESSFUL BO, as opposed to just any attempt at a TR BO, then the trader MUST change strategies. Once a BO can be defined as a successful BO. Successful BO many many times afterwards there will be a measured move that follows. From the edge of the TR where the BO occurred to the first PB (pullback) and extended upwards from the middle of that PB, the same distance upwards, in a bull BO or downwards in a bear BO.

Then, if good the momentum is strong and large bars then I will often hold to the extended measure move. However if the MM is grinding I will scalp over and over within the MM as it is evolving.

I think I have already discussed and defined successful TR BOs in my journal somewhere??

 

[StevenBruce]

Yeah

All of that sounds wonderful in print, but while you are watching a chart it is
basically impossible to know whether a breakout will be successful. Not only that
but news (of any kind) can upset your applecart. In the real world, you prepare as
best you can and you learn that anything can happen/at any time.

 

[volpri]

Yeah

All of that sounds wonderful in print, but while you are watching a chart it is
basically impossible to know whether a breakout will be successful. Not only that
but news (of any kind) can upset your applecart. In the real world, you prepare as
best you can and you learn that anything can happen/at any time.

In your opinion what is a BO? How do you when you are looking at one? What is a trading range? How do you in your trading determine the market is in a TR?

Yes, anything Can happen. We trade in a gray fog. In uncertainty.

 

[StevenBruce]

Breakouts are about price breaching a specific price point above or below
a key reference. That key reference could be the 20 ema that Brooks uses
or it could be first hour range in any market. This is all about the trader's
ability to observe the market he/she trades. As to whether a breakout fails

I will supply a chart showing an attempted breakout and a reversal

Trading ranges occur more than any other price action behavior. They can
be big or small and can last throughout an entire session, or even for an
extended time (the Emini has been in a trading range for a while now)
I teach people (in my little circle) that when they suspect a trading range
is forming, to mark the highest and lowest closes, then wait for a retest
of one of those extremes.

 

[StevenBruce]

Sorry here is the chart showing a trading range. Its pretty obvious
In this instance the market tried to break down, then bulls entered the market
to create a late day reversal back up

 

[volpri]

Sorry here is the chart showing a trading range. Its pretty obvious
In this instance the market tried to break down, then bulls entered the market
to create a late day reversal back up

Do you consider the BO of the bottom of the range on your 5 min chart to be a successful BO or a FBO? And why?

 

[StevenBruce]

And here's another chart showing how I mark the highest and lowest
closes to define a trading range. Also shows the attempted breakouts
and reversals so common in the Emini index futures. As you can see
it is equally important to know how to frame the market. "Framing"
in my opinion is the key to knowing when to scalp and when to swing
This is what I mean when I say that I have gone "Beyond Price Action"

That's it for me this evening, as I have to prep for tomorrow's market

 

[StevenBruce]

Do you consider the BO of the bottom of the range on your 5 min chart to be a successful BO or a FBO? And why?

Okay so this is pretty simple. "Success" of a breakout depends on what you do with it.
If you are a scalper looking for a small win, and you can manage to put on a position
and get a couple of points, then okay, that (in my opinion) is success. So you get my
point? I don't define success by whether price moves x number of points above or below
a range, but in terms of how the trader manages the move....As you know Dr. Brooks
claims that most breakouts fail. knowing that I am glad to wait and watch for a breakout
to fail and reverse. If Brooks is right, then your odds of success on the reversal are pretty
good aren't they? I have already done the work and can confirm that Brooks is right. So
for me this is old news.

 

[volpri]

Okay so this is pretty simple. "Success" of a breakout depends on what you do with it.
If you are a scalper looking for a small win, and you can manage to put on a position
and get a couple of points, then okay, that (in my opinion) is success. So you get my
point? I don't define success by whether price moves x number of points above or below
a range, but in terms of how the trader manages the move....As you know Dr. Brooks
claims that most breakouts fail. knowing that I am glad to wait and watch for a breakout
to fail and reverse. If Brooks is right, then your odds of success on the reversal are pretty
good aren't they? I have already done the work and can confirm that Brooks is right. So
for me this is old news.

When does brooks say a BO out of A TR is successful or a FBO? Do you remember since you said you have studied his works? BTW did yu get his video course?

 

[SunTrader]

Today's (ES) complete range so far since Globex reopen could be considered a TR since all trading so far is contained within yesterday's entire TR.