The Price Action Journal

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Hi susana
Just when I thought to open a journal like this myself you got ahead of me. Anyawys, I was only doing trend trading until recently but in the last few weeks I got more aware to S/R and started trading them with great success. In fact it's quite amazing how the ES treats S/R very seriously.
I myself trade the ES with a combination of 1PT range bars and 1 minute charts. Why did you decide to use 10,000 Vol charts?
And more important if you enter in a bounce from a S/R when do you enter? or in other words when do you know the S/R is not going to be breached?
I myself like to see at least 1PT retracment from the S/R before I enter but sometimes it's too late. I'd love to hear more opinions.
Here's a chart from last friday, just to demonstrate how I trade. Red and Green arrows marks the trades and the blue arrows mark the exact entry point.
 

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amitman -

I like how you use the 4 tick range bars. A few questions for you:

1. What's your entry? 1 tick in the correct direction beyond a reversal bar at the S/R level? Are you using a stop entry?

2. Are you using fixed target and stop sizes, or target/stops based on the past price pivots?

3. How are you using the HMA? I find a close across the HMA to be a good entry trigger (but we're getting away from the pure price action discussion here :) )

Thanks.

Sandy
 
Amitman,

I enter by using 3 bar reversals or a variation of, once we reach an area of support or resistance, this gives me some confirmation that we will see a turn, since every turn, by definition, must have one, or it won't turn.

For instance, in your chart, whatever happened to the following:

Long @ 16:45

Short @ 17:45

Long @ 18:40


What prevented you, from taking those plays at support or resistance ?

Susana
 
Sandy grey,
1) Exactly, altough I usually use market orders or buy Ask/Bid to ensure I'll be the first one in line.
2) I usually sacle out fixed targets most of the time unless I see that the next S/R is pretty far and momentum is good then sometimes I only exit at the next S/R (4th trade for example).

Susana,
I'm not very familier with the 3 bar reversal entry altough I've learned it in the past I'll love if you could post a chart and demonstrate what does it mean.
for the trades, I'm not sure if I see what you see but what I love to see is an exact touch at the S/R line (+- 1 tick and no more) and then a revarsal. So, for the first trade (16:45), it didn't reach the support line, just to the near area and I don't like this trade+ I'm waiting for at least one retracment from the S/R line before i enter at the next retracemnt.
second trade I don't know what you mean cause I don't see any potential trade there.
For the last trade (18:40) I don't remember exactly why I didn't enter but a few reasons I can think of:
1) I usually prefer to not take longs after a major Double Top (which happened in 18:19) espcially if the revarsal is fast and breaches last low or got near to it.
2)If I trade with the direction of the main trend I usually look at the HMA as a visual aid and in this case it was a very steep down move so not a lot of chances for a good reversal + it went way below the last low.
 
Quote from SusanaDT:

shortorlong,

I only use one chart for trading, the 10,000 volume, if I need to see which areas are extremely significant, I adjust a few weeks back, sometimes a few months back, but that is all that I require.

In fact, I start the trading day with the most important areas of support and resistance marked via horizontals, recent and not so recent in case we decide to test them.

All my trading is done with one big LCD the rest is for recreation and order placement and for that I use a laptop.

The quintessential key here is never to predict only to react to these important levels but for that we must do our own homework before the trading day commences and to be fully aware of where these areas of support and resistance are located so we can concentrate on price without letting the past disturb our concentration.

At least in my case.

As a last comment, you have absolutely no bias, it's all about how price decides to behave when it faces those significant points. We have the power to buy, short or do nothing, that's a great power to have and no preference should be taken except for when price tells us it is time to do one of the three.

Hope I did not babble too much, just expanding a bit of what I look for.

Susana
More...

sounds like you use market profile, even though I know you do not. Works the same way though. No bias, just reacting to price action at key spots. Does build in volume however.

I love very simple approaches like this. I operate in a very simple fashion without indicators also, but totally different than you. Just classical trendlines with volume and previous support /resis. Look at bonds a lot for keys as well, as they move first more often than not. Don't know why. they just do.
 
Quote from Jayford:

sounds like you use market profile, even though I know you do not. Works the same way though. No bias, just reacting to price action at key spots. Does build in volume however.

I love very simple approaches like this. I operate in a very simple fashion without indicators also, but totally different than you. Just classical trendlines with volume and previous support /resis. Look at bonds a lot for keys as well, as they move first more often than not. Don't know why. they just do.
More...

Jayford,

I know about Market Profile and studied it in the past, it's not bad for determining levels of support or resistance. Now, as a price action trader I feel I can obtain more precise levels myself so I don't rely on MP anymore.

Nothing against it though.

As far as bonds, never looked at them, could you please give me a few symbols to monitor during the trading day, I would not mind the research.

Thank you.

Susana
 
Quote from amitman:

Sandy grey,
1) Exactly, altough I usually use market orders or buy Ask/Bid to ensure I'll be the first one in line.
2) I usually sacle out fixed targets most of the time unless I see that the next S/R is pretty far and momentum is good then sometimes I only exit at the next S/R (4th trade for example).

Susana,
I'm not very familier with the 3 bar reversal entry altough I've learned it in the past I'll love if you could post a chart and demonstrate what does it mean.
for the trades, I'm not sure if I see what you see but what I love to see is an exact touch at the S/R line (+- 1 tick and no more) and then a revarsal. So, for the first trade (16:45), it didn't reach the support line, just to the near area and I don't like this trade+ I'm waiting for at least one retracment from the S/R line before i enter at the next retracemnt.
second trade I don't know what you mean cause I don't see any potential trade there.
For the last trade (18:40) I don't remember exactly why I didn't enter but a few reasons I can think of:
1) I usually prefer to not take longs after a major Double Top (which happened in 18:19) espcially if the revarsal is fast and breaches last low or got near to it.
2)If I trade with the direction of the main trend I usually look at the HMA as a visual aid and in this case it was a very steep down move so not a lot of chances for a good reversal + it went way below the last low.
More...

Amitman,

Will later study your reasons for taking or missing those timestamps I marked, thank you for responding.

In the meantime, here's a screenshot of some Three Bar Reversal samples, some basic ones, and some slightly more complicated ones due to inside bars or miniature double tops/double bottoms, the horizontal line is the confirmation of the possible turn. I'm sure there are more detailed discussions of these famous formations.


2qiz0r7.jpg



Susana
 
Susana, have you looked at the ross hook?

How do you find it compares to 3br? To me, they seem almost to be talking about the same thing.

Have you distinguished between them?
 
Quote from SusanaDT:

Jayford,

I know about Market Profile and studied it in the past, it's not bad for determining levels of support or resistance. Now, as a price action trader I feel I can obtain more precise levels myself so I don't rely on MP anymore.

Nothing against it though.

As far as bonds, never looked at them, could you please give me a few symbols to monitor during the trading day, I would not mind the research.

Thank you.

Susana
More...

ZB U8, 30 yr treasury bond. September. Moves more than the notes, so I use bonds. about a 90% negative correlation to stocks currently, although inflationary data drives em both the same direction. I often cue off bonds without seeing anything in stocks. gets me in ES early. Doesn't always work of course, but it is a tool I use a lot. I always have a 2 or 5 min chart of bonds on one of my screens (up to 5 screens now, a little overkill)
 
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