The Price Action Journal

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Quote from bathrobe:

Susana, could you please explain why you referred to the first trade of the day as stupid (or if you are on your trip someone else could help explaining).
Thanks in advance,
Chris :)
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Price was not at support level, no trading range established up to that point, so the trade does not qualify as her "rabbit" trade;
It is also not a trend following trade.

Correct me if you see it differently.
 
Quote from HooLee:

Price was not at support level, no trading range established up to that point, so the trade does not qualify as her "rabbit" trade;
It is also not a trend following trade.

Correct me if you see it differently.
More...

Makes complete sense, thanks for your help.
Chris
 
Quote from bathrobe:

Makes complete sense, thanks for your help.
Chris
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I'm very impressed by her performance today, btw. Only really good traders can survive such choppiness, and only top traders can still milk such market.
 
Susana, May I suggest that you increase your font size on your charts. On screen or printed, it is very hard to read.

bty. Any friend of Anek's is a friend of mine.

Best to you.

Don
 
Susana -

Why not use a stop entry on the magic tick trigger? You could set it to be a stop limit order with max 1 tick slippage. It's relatively rare that a stop order isn't filled at your desired price in the ES, and rarer still for it not to fill 1 tick away from your desired entry.

By the way, this thread is really becoming an inspiration to trash all of my indicators.

Sandy
 
Ok guys packed and ready for tomorrow, very excited about this trip, took me by surprise.

Ok enough about me, the charts.

The first long, I thought the momentum of the sell off had taken price lower than it should have (I was clearly DEAD wrong) because it went through my potential area of support like if it was not even there. This area was obviously significant, otherwise it would not have turned into resistance for the rest of the day. Instead of buying a falling knife I thought the bullish 3BR would give it some momentum to retest support to see if it was resistance or maybe (wishful thinking) a V bottom. Anyway, long story short, you know the outcome, I was dead wrong and simply waited for what was without a doubt the real support, the 55 area, which not surprisingly held all day long.

You see one of the best lessons I ever learned was that being wrong is perfectly ok as long as the loss falls into your risk criteria, now whenever you are right, you got to press it because those winners are exactly the kind of insurance that takes care of our butts in trading. (Thank you Anek)

Regarding how I got to these two lines, well it's simple, go back several days and look for areas of support turned resistance, or resistance turned support and these "flips" will make those points extremely significant in the upcoming day(s), you see the market believe it or not, has a memory. (Thank you Sam)

I don't use that many horizontals, some people got like 10 support pivots or 10 resistance pivots, they draw so many horizontal lines before the trading day begins, if its not one it's probably the other but that's just crap, select what's really meaningful and try to ignore the noise from the big picture so you can plot these important areas in tomorrows chart.
Some might use the high/low of Globex too, some the 15 min Opening Range or a different cup of tea. I like to produce my own based on past price action but in the end the choice is ultimately yours. I usually got two for support and two for resistance, anyting more than that and you are just playing a guessing game with no real aim. (Thank you Anek)

Sandy:

Remember that I also try to reduce my risk, so if I buy/short the exact confirmation point of the 3BR my stop will be bigger and this is no good. This is not Puretick you know lol (Thank you Stealth Trader)

Bmwhendrix:

Not a problem will use a bigger font in the future.

See ya all later, toodles!

Susana
 
Hi all,

I've been bit by the trading bug last month and have been learning non-stop. I connected with Mark Douglas' books and his exercise at the end of the book led me to the AHG thread and now here. I've learned a tremendous amount and have started trading a live account on TS on PA. Thank you All! I have a day job so I can only get in 1.5 hours of morning session before I go to work. Anyways, here's my first trading chart. 2 trades, 1 winner, 1 stopped out because I was scared and had a stop too small.... lesson learned always put up at least 2 points or so depending on R/S. Overall up $137. Could have been up on both trades but there still tomorrow :) Please feel free to comment on my trades, I'd love to be more active on this tread.

PS. I drew the S/R lines around 7:30am pacific time. I don't see the 1265 support in Susana's chart although mine comes in around 1264... If anyone might have explanation that would be great.

Cheers

JW
 

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<i>"Anek suggested that since I do 2 cars I should do 1 car @ limit of 3BR/Matching confirmation then a 2nd one at my typical place, then whenever I do 3 cars, the 3rd even lower with the same stop for all of the scale ins. Something to consider, basically scale in the position into the entry formation to avoid these no fills while keeping the risk in control."</i>

A 10k ES chart is akin to 5min or 10min time chart in overall scope. Those slower charts show the big picture very well with least amount of fakeouts. That is their benefit.

The disadvantage is, they are slow. There will always, always be signals that simply blow away on long bars formed. No amount of tweaking or massaging entry tactics will change that fact. Traders who use one chart alone accept the reality that they either deal with some missed signals along with greater filtration or deal with chop & noise with no missed signals.

There is no single perfect chart setting that permits both. Everything on a single chart is some degree of compromise to balance both, period.

Using a 10k filter or "anchor" chart and also faster trade chart for precision signal setups is another choice. That too is a compromise on how to see = read clear market action while not missing single trees in the overall forest.
 
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