The Trouble With Scribbles

[dbphoenix]

I'm not looking at that level in hindsight. I'm looking at that level where support may happen on the way back down. Something like this.

View attachment 151439

What you drew is relevant only for that segment for which you drew it. Once price broke above 4400, it was no longer pertinent.

 

[trader482]

What you drew is relevant only for that segment for which you drew it. Once price broke above 4400, it was no longer pertinent.

Ok, thanks. I'm just trying to map.

 

[dbphoenix]

--04/13/15 RTH Short NQ Jun at 4411.50. Initial stop loss is 4455.00
--04/14/15 RTH Price is 4391.00 Staying short with same stop for now.

Here is my analysis of today's activity on the NQ 15 min chart. Just two trades identified on the 15 today. Unfortunately one of those was hours prior to the NY open and I would not have been awake to take the trade anyway. Some may wonder why the first short is allowed to come all the way back and the answer to that is that any stop reduction prior to that would have put the stop in the noise. In addition, the bear flag that was forming would suggest further downside and one would be careful to adjust stop too early. In order to reap full benefit, I try to endure retracements.
View attachment 151403

I'm going to assume that this individual has two accounts and is short in one and long in the other (note the "buy" notation after 0945). It is otherwise not possible to be both short and long the same instrument at the same time.

 

[fortydraws]

You could always try a SIFI trade.

If I were already in a position on what looks to be a trend day I will use a SIFI stop loss. But I don't typically use SIFI entry orders. Today was day on which patience (or a nimble range scalper) was rewarded.

 

[fortydraws]

Great thread.

Buy1Sell2 will be by to thank you for acknowledging his efforts sometime around midnight tonight.

This thread is getting a bit long. Anyone care to ask Buy1Sell2 to shut this one down and he can open "The Trouble with Scribbles II"? I'd ask him myself, but I think he might have me on ignore

 

[dbphoenix]

If I were already in a position on what looks to be a trend day I will use a SIFI stop loss. But I don't typically use SIFI entry orders. Today was day on which patience (or nimble range scalpers) was rewarded.

I don't know that I'd call it a scalp. It's worth 14pts so far.

 

[dbphoenix]

Buy1Sell2 will be by to thank you for acknowledging his efforts sometime around midnight tonight.

This thread is getting a bit long. Anyone care to ask Buy1Sell2 to shut this one down and he can open "The Trouble with Scribbles II"? I'd ask him myself, but I think he might have me on ignore

I closed my journals when they went past a thousand. A thousand is just bedtime reading.

Now if you want too long . . .

 

[fortydraws]

I don't know that I'd call it a scalp. It's worth 14pts so far.

I was referring to the 398ish to 411ish range prior to the breakout.

 

[dbphoenix]

Looks like a 16pt move up total.

 

[fortydraws]

Find the range, and then think breakouts, reversal, retracements. The tests (yellow circles) of the range limits should be of interest to the "definition of a breakout" crew. Price at each of the yellow circles "broke out" of the range limited by the pivot points (arrows), but only the fourth became a breakout signal, imo. Some may have traded all four as breakouts. Others only the fourth. This is what is meant when one says that each individual trader must define for him or herself what a breakout is for the instrument traded and then create the trading plan that tells one ahead of time under what conditions a breakout becomes a signal to act and under which conditions it signals nothing, or, when they signal a trade opposite the breakout, aka a reversal.

Now, if you have to ask "why would you trade the 4th BO as a BO but not the 1st or 2nd or 3rd?" then you need to look at each very carefully and identify what price did at the 4th that makes it different from the first 3.