The Price Action Journal

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Has anyone here used range bar charts? When I was trading with IB and using Quotetracker, I used these charts and liked them a lot. Range bar charts really take the noise out and help you to see the big picture.

I'm trading with AMP now and trading directly from the charts. Unfortunately, they don't offer the Range bars yet. I spoke with their software engineer and he said they had them already worked up and simply needed to add them to a future release, so they should be coming soon.

If you have never used range bars, I suggest you look at them and see what you think. An old timer put me onto them and he was right, they definitely reduce the noise.
 
Quote from ggoyal:

today around 11am Merrill was heading down and I chased it by shorting it without the pullback. obviously got out with a minor loss.

It could have been a winner had i shorted it when it made a LH.

Nonetheless, I am still reading AHG and it is probably the best thread on this site. 2nd would be this one because I found AHG after following this and what Susana said.

Also regarding double tops and double bottoms, anyone know the percentage of times they work(i.e., short a double top, long a double bottom). I was thinking about playing ALL double tops and bottoms I see during a day and place a stop $.01 below the line. obviously now double tops and bottoms dont happen every 10 minutes( I see maybe 1-2 a day from the amount of time i spend, sometimes more). And ofcourse this will be small scalp.

I have read 76 pages of AHG so far and here is my generalization so far:-

1. Mark highs and lows

2. Look for HH and HL for uptrend, LL and LH for downtrend(easy to identify)
Question- When there is a pullback(LH, how do i know thats the highest it will be to take a short position? this is the hard part)

3. Mark S/R lines and go back couple of days if possible. Look for DT's and Db's.

I use the ameritrade charting, I use the 1 day chart and 4 hour chart. 1 day chart for the big picture, 4 hour for a better picture.

Question- Looking at the 1 day chart shows me potential for bigger rewards with bigger risk and I don't want to place a trade with a big stop(AHG). looking at the 4 hour chart, i get caught in the smaller trend. What is the possible solution?
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The easiest way to reduce the size of your stops is to go to a smaller time frame. 4 hours is pretty large, so your stops will most likely need to be very large. One suggestion might be to trade from the 4 hour chart, but make your entries and place stops on a 110 tick chart or maybe even smaller than that.

When you see a set up you like on the 4 hour, go to the 110 tick and find your entry, along with a nice Sup/Res area that is closer to your entry. It should be much easier to find a sup/res point on a 110 or smaller chart.
 
Stops are used for only one purpose, protect capital and reduce risk.

You can achieve the same action, that is, protect capital, by reducing starting size and increasing stop then as the trade develops you can apply position management.

Anek
 
Anek,

Welcome to the "Night Club". Very nice price action so far.
I never thought of increasing stop by reducing size; very good thinking. Have a nice weekend.

Holt
 
Quote from Anekdoten:

Mostly a continuation from yesterday, nothing new, except that we finally got to some real resistance area.

Anek
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1-How did you determine the width of that "Resistance Area"?.

2-What triggered your exit longs and start looking for shorts?

Thanks in advance.
 
Quote from alea_jacta_est:

1-How did you determine the width of that "Resistance Area"?.

2-What triggered your exit longs and start looking for shorts?

Thanks in advance.
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Interesting question.

Hi Susana,
It's good to see you there.
:D
 
Hi Anek,

Do you personally use limit, stop, or market orders when entering trades?
Thanks.

Floyd

Quote from Anekdoten:

Stops are used for only one purpose, protect capital and reduce risk.

You can achieve the same action, that is, protect capital, by reducing starting size and increasing stop then as the trade develops you can apply position management.

Anek
More...
 
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