maybe you gotta stare before you can 'see'. Or maybe it's all a load of nonsense lol
trading bar by bar......an experiment
- Thread starter padutrader
- Start date
i am not sure about nonsense.....i stared at charts for 20 years.....but i do know i would have had more fun if i stared at Angelina Jolie instead
There are multiple contexts. The general context in any one TF is the main context. But say you focus on 5 minute charts. 3 of those bars make up the immediate context on a 15 minute chart and five 1 min bars make up the immediate context on a 5 minute chart...etc. It is helpful to see what the larger context is on say a five minute chart by just looking at the 5 min chart but it is helpful to see how that context on that 5 minute bar is forming by looking at a 1 min chart and also how things look in a 15 min or even 30 min chart. Even though one is trading strictly off the 5 minute chart. For instance, on the 5 minute chart you see below the next to the last bar is a pb on a 1 min chart and the last bar is a second leg pb on the 1 minute chart. The former is not technically a pb on the 5 min chart. The latter is.
So how can this help? Well you got multiple tops forming on the 5 min chart. Higher lows. Bigger bull bars. 5 bull bars. 4 bear bars. Two doji (bear) bars. So overall on the 5 mi chart pressures are about even with a slight advantage for the bulls with higher lows and bigger bull bars. On the one minute chart we have a 2 legged pb (last two bars on the 5 min.) knowing that there is slight bullish pressure on 5 min and on the 1 min knowing the market often will make 2 pushes in one direction followed by movement in the opposite direction but also knowing it could have a third push down on the 1 min how would I trade this? Since I would consider trading this here is what I would do. I would place a buy order 2 ticks above the high of the last bar . If not filled by the end of the bar I would do the same on the next bar. An alternative would be to dial down to a one minute chart and enter long on a H1. This would have the effect of most likely getting me in earlier on the trade.
Last edited:
I can agree to this, because when i first came into trading it ALWAYS about a system or method. For example, if this RSI is above this, and this indicator line was above this, place your Buy Stop 4 ticks above X number of bars. With this purchased system, I was able to sit back with my coffee cup, wait for this setup, and click buy. If after X months/days/year the outcome was losing money, it was all the purchased system fault. Then off to the next system to blame.
When I left the "I did not a system to tell me what to do" world and made a forcefully decision to sit my butt down and stare at the chart and take the time to study/read/comprehend how to read the chart and try to find opportunities to enter the market, a few things started to come together. I'm not consistently profitable, yet, but I am starting to see and react and focus on what matters, and what matters is being apart of the move upwards and the move downwards. Watching, waiting, timining, when to enter, where to exit, when to let price move some more, its alot. Try to be apart of the move and don't consider myself wrong or bad trade, because I was apart of the move, but it instantly went the other direction. Being comfortable with a justifiable loss and thinking the high odds of a win
Sometimes when i find i read it wrong i will take the loss ...double up and head in the other direction. It only has to travel 1/2 distance to recoup my loss and after that it is profit.
Time is a factor to consider and i pay attention to it in the immediate context.
Yes, I trade 1 contract and little account size. Recently, I added to my rules, "you are allowed to be wrong twice a day, and you done for the day!"
volpri,
Good write up. If I see this on my 3 minute chart and the context is bullish movement upwards, i will enter at the close of that bar where the green arrow is showing. I enter here because the odds of me winning trading with the trend is high.
