The Price Action Journal
- Thread starter SusanaDT
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Ggoyal,
Me? No.
I tend to take trades "as close to" S/R but only in direction of the trend. And to add, I also use diagonal trend lines to help identify potential S/R.
Although assumptions are not good while trading, my expectation of a possible price run to 1299, do this:
Get a Fib retracement of the 8/7 intraday high of 1282.75 down to the 8/8 opening lows 1262 (tweezer bottom) and you'll find that I traded the breakout of Thursday's high with expectations of at least a 162% Fib extension. (Also, R2 Pivot for 8/8 was 1299.)
I hope this gives food for thought.
Regards,
Tex
Hi Tex,
Thanks for the response and including a chart showing your entry.
In a message that posted later you mentioned using trendlines to show support and resistance levels. Can you please explain your method of drawing trendlines? How exactly do you use them to find support and resistance? Thank you.
Floyd
Thanks for the response and including a chart showing your entry.
In a message that posted later you mentioned using trendlines to show support and resistance levels. Can you please explain your method of drawing trendlines? How exactly do you use them to find support and resistance? Thank you.
Floyd
Quote from TXGrillGuy:
Hi Floyd,
I changed the chart interval from 3Min to 1Min and increased bar spacing a bit so that it's clearly visible.
My entry was based on price holding twice at the 1287.25 (resistance turned support...possibly) which lead me to believe it was low enough risk for entry. Otherwise I would have passed. My entry wasn't exactly on the 1287.25 but I was willing to risk up to 6 ticks with my stop just 1 tick below recent support. Believe me, it got close (within 1 tick) of stopping me out 4 times over the next 45 minutes. But I was fine with that. Fortunately it worked out.
My stop adjustments are more self-explanatory.
Regarding order execution, I used a buy limit on my NT DOM.
Take care,
Tex
Hi Floyd,
I've attached the same chart which includes a diagonal high-to-high trendline. Notice how it confirms 1272.25 as new support. As you see here, it's just as significant a decision point as any. S/R is important no matter whether it's Horizontal S/R (a simple horizontal line at price congestion, Fibonacci, Pivots, etc.) or Diagonal S/R (high-to-high, low-to-low, low-to-high or high-to-low--all used for varying reasons).
A quick note about the time template I've set in this chart. I tend to silence afterhours and overnight price activities as to quickly identify opportunities to trade gap fills and gap fill failures (from close to open) that might develop. Otherwise, the 24hr time template works just as well.
I'm so glad Susana started this thread. Thanks Susana!
I hope that this helps.
Take care,
Tex
I'm wondering if people find it more useful (perhaps just in the early going, as a part of the learning process) to go for arbitrary fixed profit targets rather than exits based on PA-S/R.
As an example, I've found that setting a 13-tick profit target on the ES seems to make a big difference in my results. Using a discretionary exit strategy, I seem to always exit too early or too late, and my average winning trade is only about 2 points. OTOH a review of my past trades shows that I often get a good ~3 points of follow-through in my direction, unless price hits my stop almost immediately, but on such trades I'd only come out with a couple of ticks' profit or a loss.
My thinking is that I'd have retrace protection on chop days, while I could still pull down a big trend in discrete 'chunks' on those wide ranging days.
As an example, I've found that setting a 13-tick profit target on the ES seems to make a big difference in my results. Using a discretionary exit strategy, I seem to always exit too early or too late, and my average winning trade is only about 2 points. OTOH a review of my past trades shows that I often get a good ~3 points of follow-through in my direction, unless price hits my stop almost immediately, but on such trades I'd only come out with a couple of ticks' profit or a loss.
My thinking is that I'd have retrace protection on chop days, while I could still pull down a big trend in discrete 'chunks' on those wide ranging days.
I have thought about it too. Have say a max 15 pt exit with a half size stop. If you know what you r doing, you should come otu ahead, right?
I don't know why others don't it. well, one reason is because they want the market to decide when it is enough.
Read AHG, he says that you should have a stop at the low of previous 2-3 bars when entering, and after that, if it goes your way, move your stop up everytime to the previous higher high(HH). Thats my understanding. I might be off though. I am still in the process of reading that 1000+ page journal.
My take on today's ES. I rode most of the wave up, but had a difficult time pulling trigger on way down. I didn't have a feel for the downleg, couldn't find an entry, didn't want to chase and very much wanted to preserve the points I made on the way up.
Where's Susana? I would like to see her take on the market.
Ty
Where's Susana? I would like to see her take on the market.
Ty
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