The Price Action Journal

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+1.98pts on the day (simulated!).

Not shown is a trade from last night where I got stopped out for -6 points (the target was 15-20 points). I made a couple back by noontime when I hit a big long for 12 points. That trade was based on a 60min chart, I noticed that price was almost exactly at the intersection of a TL and a resistance line from a prior day... I initially aimed for a target of 1310 but decided to take profits at +12 as I thought price had covered that distance "too quickly," without any consolidation on the 15/60min charts, and might well retrace before 1290.

'Course then I turned a +8 day into a +2 day with two sloppy trades towards the end...
 

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TStavros,

Do you still like the Market-E-Motion lines? I took them off my charts because I found myself trying to play them like you did today.

It's easy to say this looking in and in hindsight but I think it's important to wait for some type of confirmation before fading that line. I find myself trying to do the same thing w/ S&R.

I'm trying to make myself quit doing that and anticipate the bounce off the S or R, wait for the swing in the new direction, wait for the pullback, make sure it is below the S or R and enter on a 3br. Seems to help me from trying to catch that knife and it should still be fairly close to where you would have entered in the first place.

I dunno... just an idea. :D
 
Quote from BoyBrutus:

Firstly adjust your screen resolution to 600 x 400 :D

I think a key part of the trade was the 1275 support

Also the low had Wyckoff spring action


http://www.hankpruden.com/MTWyckoffSchematics.pdf

Low confirmed by the NQ dragon formation

http://www.elitetrader.com/vb/showthread.php?s=&postid=1829804&highlight=dragon#post1829804
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I agree with the support level being key. I took this trade as well, but only because it bounced at an area that I had marked as a major support area. When you get those false break outs, and then a higher high, if you get a higher low, that's a good long signal in most cases. As you described, it's like a spring action. Those false break outs at major support almost always turn into a good trade if you take them.

What a difference a day does make. Today I was in tune with the market and made money coming down, and then saw the bottom formation and turn and took it with ease. Yesterday, I could not get it right to save my life. I had one losing trade today out of the gate, and then had 4 straight winners. After the losing trade, I got focused and it came rather easily after that.

Being relaxed and in tune with the market is important. If I am having problems in the future, I'll just quit for the day and start over the following day. I appreciate the advice that someone gave yesterday that told me to do just this. Start over today with an open mind doing what I always do, and just as he suggested, it worked like a charm.
 
In the spirit of sharing with my price action trading colleagues and non indicator freaks and geeks, my most excellent trading day.

I don't say it often enough but I got to thank Stealth Trader again for his insights. You rock ST, wherever the hell you are, some of your concepts did wonder for my trading.

On the line that it says, exited due to bullish 3BR @ the 1279 level, it was really a matching low but since I though 79 to be solid support I exited and took my profits without looking back, no regrets there, eventhough it got lower.

The entries were kind to me some of the exits could had been better but you can't take the big winners without taking chances. As you can see I have incorporated the scale in of two cars to make sure at least I get one position in and avoid those "NO FILLS!" that I detest so much. Total car size is still two, too chicken to increase just yet.

To conclude, I hate indicators and I hate paying rooms, yet I love you all!

Toodles!
Susana
 

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Quote from amitman:

I know you guys love to trade almost any S/R but I prefer setups with hight probability.
Here's an example from today for a setup that rarely fails. A setup I learned from Bill (AKA Bilbod) one of the best traders here and a nice guy too.
Anyways he says that after 3 waves in the direction of the main trend you need to expect a small or a big reversal or at least a 100% retracment to the last pivot.
Here's what you do. wait for 3 consecutive waves in the direction of the trend. Watch the 4th wave, if it's DB/DT enter a trade against the main trend. 1st target is at least last high/low (depends on the main trend) and if you're lucky, like today, you might get a full scale revarsal for the 2nd half. Enjoy.
f_Example23m_3b17494.jpg
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Amitman,
Your guy Bill sounds a lot like my eminis mentor (Jim) who taught me this setup just a few years ago while programming me to begin understanding PA and trading S/R. (My hat's off to Anek, Susana, Bill and all others who have shared along the way as well.)
Sometimes these setups take place before a 3rd wave is formed. But they're high probability nonetheless.

For the rest of us, I've attached the usual eye-candy of the ES 10Min chart to continue showing how fluidly price sometimes move between Fib S/R levels. Still horizontal support.

Another trader commented about filling their chart with too many trendlines before.
Quick tip: Identify and monitor S/R in a chart interval only 3 to 5 times your execution chart interval. For example: Trade on the 3Min while watching S/R on a 10Min to 15Min interval chart, and so on. But don't overkill by watching too many higher interval charts. Use only what benefits your trade style and then toss the rest. Really, it makes a difference.
:)

Headed out for my jog now.

Take care,
Tex
 

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Quote from SusanaDT:

In the spirit of sharing with my price action trading colleagues and non indicator freaks and geeks, my most excellent trading day.

I don't say it often enough but I got to thank Stealth Trader again for his insights. You rock ST, wherever the hell you are, some of your concepts did wonder for my trading.

On the line that it says, exited due to bullish 3BR @ the 1279 level, it was really a matching low but since I though 79 to be solid support I exited and took my profits without looking back, no regrets there, eventhough it got lower.

The entries were kind to me some of the exits could had been better but you can't take the big winners without taking chances. As you can see I have incorporated the scale in of two cars to make sure at least I get one position in and avoid those "NO FILLS!" that I detest so much. Total car size is still two, too chicken to increase just yet.

To conclude, I hate indicators and I hate paying rooms, yet I love you all!

Toodles!
Susana
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Awesome Susana!
:D

Regards,
Tex
 
Rolex Trader and TX, Thanks for your comments.
Rolex, it does seem like 5 waves but the first one (which I didn't count) didn't make a lower low (it was actually a nice H&S formation) so I didn't count it as a part of the trend, but you should know that the more waves the highest probability that the next DB/DT will cause a major revarsal, so if it's 4 or even 5 it's even better, but after 3 you start to look for the formation.
TX, I know these things happen after less waves but they are not high probability bacause the trade is not likely to exhust so fast.
 
Quote from jashanno:

TStavros,

Do you still like the Market-E-Motion lines? I took them off my charts because I found myself trying to play them like you did today.
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Jash,

Me lines are pretty reliable when u know how to use them, takes a lil bit of time and of course judgement, don't completely disregard them yet...

Also, remember ME lines are simply areas... a % of the day's range, not a specific price point, the NQ can and often does overshoot the lines by a few ticks (sometimes they hold to the tick).

Today's chart:
http://i35.tinypic.com/15yvegz.jpg

Also, this is another chart i made a while back for some the guys in the AHG room showing how effective ME lines can be in reading PA.

http://img108.imageshack.us/img108/5058/07032008194014wg5.png

enjoy :-)

-born4th-
 
Quote from SusanaDT:

...

I don't say it often enough but I got to thank Stealth Trader again for his insights. You rock ST, wherever the hell you are, some of your concepts did wonder for my trading.

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Hi Susana.... excellent work today!! Congrats!

Regarding Stealth Trader.... I've read him in the past and found his words to be very valuable. I wondered if you could share what areas of his work you've found most useful to how you now trade. Perhaps links to particular threads or just topics in general that would aid in searching and research.

Thanks again for the charts... you are an inspiration!

Fox
 
Foxthorn,

Here you go, much credit to ST in my trading. I will tell you what I did and how I learned from him.

First thing I did was download every single chart he ever posted on the forums and study his commentaries under a looking glass.

He introduced the concept of 3BRs to me, where to enter, how to handle the stop placement and how to also apply them to my exits.

He suggested the usage of 10,000 constant volume bars in ES.

He supported the concept of following the trend and only using one time frame for all analysis.

Plus he was kind of enough to reply to my "harassing" PMs for further clarification. Please don't PM him, he hates it!

I then did sort of a fusion from AHG and private AHG writings from Anek, ST teachings and many other concepts introduced by my dear friend Sam and the conclusion is the current style you can witness in my charts.

In the end I took from Anek what I could use in a positive way and erased what I could not understand, did the same thing with ST and the same thing with Sam who does not hang around the forums. Combined it all, made it my own (not to be confused with unique) and I apply it to the best of my abilities to finally get a grasp of how the hell to daytrade for a living and so far, so good.

Susana
 
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