The price action facebook journal

[amitman]

So... today was crazy indeed, and I missed all the action due to wotk

Made 1 trade however with 250 shares +21$

I also wanted to share a swing trade I have done in GOOG using the exact same method, I'm partially out with 44$ already locked and about 100$ unrealized

Blotter attached for both trades

I might not trade till EOY due to holidays.
Merry christmas to everyone!!

 

[amitman]

Couldn't resist to trade today
So traded the first 30 minutes.

First trade was very frustrating, I wonder if there is a good way to avoid this kind of whipsaws or should I just accept them.
Thinking maybe wasn't enough retracement, or not a good reversal pattern, any advices?

Glad I had the disipline to re-enter and still finish my day (slightly) positive. +2$ today.

Also opened another swing trade today on MSFT at 37.03. Current stop is 36.47 (below yeserday's low), target is 37.9. Still holding GOOG with stop at 1087, considering to raise it to 1100.

 

[Redneck]

Quote from amitman:

Couldn't resist to trade today
So traded the first 30 minutes.

First trade was very frustrating, I wonder if there is a good way to avoid this kind of whipsaws or should I just accept them.


Thinking maybe wasn't enough retracement, or not a good reversal pattern, any advices?

First short – too early

Second short – golden

First long – what the hell we’re you thinking

Second long – what the hell were you thinking

If my attachment doesn’t make sense – ask


Notes

Identify the current direction

PB’s come in variations – master them - master trading them - master building context

A PB on a higher TF..., is a PB & Retrace on a lower (assuming price doesn't end up reversing)

The sequence of events.., in a perfect scenario…, goes like this;

PB –> Retrace –> Reversal

Trading nor PA is seldom perfect - adapt

RN

 

[amitman]

RN, the green arrows are not longs, they are exits of a short (read the text...)

Thanks for the charts, I'll go over them and see if I have any questions...

 

[Redneck]

Quote from amitman:

RN, the green arrows are not longs, they are exits of a short (read the text...)

I screwed up…, My apologies

==============

For my edification

If red arrow = short entry… and green arrow = exit from that short

What are the long entry / long exit – blue arrows??

RN

 

[amitman]

Quote from Redneck:

I screwed up…, My apologies

==============

For my edification

If red arrow = short entry… and green arrow = exit from that short

What are the long entry / long exit – blue arrows??

RN

Apology accepted .

Long entries and exits are just the same but reversed (green arrow entries, red ones exits)

I will change it for you . From now on, green arrows will be long entries and red will be short, for exits I will see what to choose. Any favourite color?

 

[Gringo]

Green = Long
Red = Short
Black = Exit

 

[Redneck]

Quote from Gringo:

Green = Long
Red = Short
Black = Exit

What this gentleman posted - however....


You own this - it must make sense to you first and foremost - screw what I think

Quote from amitman:

I will change it for you

RN

 

[NoDoji]

Quote from amitman:

First trade was very frustrating, I wonder if there is a good way to avoid this kind of whipsaws or should I just accept them.
Thinking maybe wasn't enough retracement, or not a good reversal pattern, any advices?

Glad I had the disipline to re-enter and still finish my day (slightly) positive. +2$ today.

I don't know if FB has a specific "personality" or is basically generic in its price action, but I'll share something that's helped me avoid the "whipsaw" you encountered and you can study this idea.

I keep a 20-bar EMA on the 1-min chart. This is a guide to where price is likely to pull back unless a second entry sets up before price ever pulls back that far.

The wide bear bar at 9:34 ET becomes what I call a containment bar as long as the subsequent price bars remain within its boundaries. Price action that remains inside the containment bar's boundaries are inside bars. I avoid first entries on inside bars unless there's a strong trend and price is making new highs or lows of the day. Even then I prefer to let a second entry set up because my research found much improved odds by waiting for a second entry.

The 9:46 bar is an inside bar twice over; it's inside the containment bar and it's inside the 9:45 bar as well. If you trade a downside break of this bar a survivable stop loss has to be outside the containment bar and preferably outside the 1-min 20EMA (which is around 58.20 there). If you don't like the size of a stop above 58.20, then wait for a second entry.

Once the 9:43 containment bar is tested, breaks out, hits the 1-min 20EMA and closes red during the 9:48 action, it sets up a second entry to the short side because now, as a scalper, you have a logical price at which to place your stop loss (just outside 58.20).

All the best to you!

 

[amitman]

Few things for today.

First we've reached 2000 posts (2200 to be exact )

Second thing, NOD, thanks! this is very helpful, I'm sure to check it out (although I see the in this specific entry the EMA20 is at 58.10 and not 20 maybe you've used the non-RTH data too?)

As for today, missed an amazing trade in the start due to technical issues, very frustrating, then made a trade which was not valid and shouldn't have been made,
I'm happy that I had the disipline to exit it on time (with small profit) but not happy that i've entred it in the first place...

Still holding GOOG (entry at 1075.2 target is 1190 stop is 1099) and MSFT (entry 37.03, stop 36.47, target 37.9)