trading bar by bar......an experiment

[volpri]

it is not a strategy that is mine or brooks....waiting for a pullback in a trend to enter has been used from the day stock trading begun...price do not move in a straight line
however using this strategy when market is in a range is a disaster....so knowing when to use what strategy is the key

Say price is in an uptrend on a 15 or 30 min chart.

If one is trading one particular TF that is in a range if you bump up to a Higher TF it may just be a PB and probably will be. So..an entry long on say a 5 min chart at the bottom of the range gets you in early and set for when price has a BO on the north side of the range on that 5 min chart. However, on the 15 min chart or 30 min you would be entering at the bottom of the PB. The same thing can happen on 1 min chart compared to 5 min charts. Price is moving on both charts but different setups.

In addition, if ones entry is at the bottom of a range on 5 min and bottom of pb on 30 min you still have to consider from a tactical standpoint that 70% to 80% of BO’s of ranges fail and price trades right back into the range. So, if one’s entry was long at the bottom of a range on a 5 min chart hoping to be set up for a BO at top of the range (a continuation of trend after pb on a 30 min chart) one has to be ready to exit the long at the top of the range on the 5 min if no forthcoming BO is successful. That is, don’t hang onto it because it is starting to track sideways on the 30 min or at the very min the pb on the larger TF is lengthing.

Strategically one is trading the larger context an uptrend but tactically ones is making their entries and exits on a smaller TF.

 

[sillyw10]

took a holiday from trading for about six months...

when i was playing golf, i found it was very helpful, sometimes just to quit, when i was too confused and things were not going well as i would have liked, for a longish time....to clear the mind.

there is a similarity between playing golf and trading in the sense that both need a healthy dose of judgement: although in trading it is possible to have a system based method something which never did appeal to me.

The problem with discretionary style in trading is it is not so easy to sometimes explain why the trade was entered.

That said the aim is to use 5 min charts and try to mange the trade .....by getting out at the first sign of trouble.....so it may be a scalp or something more

professional golf players have a full set of clubs!

 

[sillyw10]

What, exactly, do you mean by trading "bar by bar"?

it is like saying playing 18 holes with just one club..even though it is possible..the results..or the outcome..will probably not be very good

even when most who play golf get a full set of clubs..very few make it into the big money game..which of course everyone knows is not achieved overnight by those who made it

the biggest problem that most face today..is trading being advertised as easy money..which of course anyone who has tried and lasted long enough to learn a few key "techniques"..knows..that it is far from easy money..it is the exact opposite..hard money!

 

[padutrader]

What, exactly, do you mean by trading "bar by bar"?

good question....that is why i said it was an experiment.....i found that it does not make any sense since you have to consider the last few bars if you are scalping

 

[SimpleMeLike]

An alternative is hold long positions and add to it on PB’s. Exit when trend changes. The advantage of multiple entries and exits is you make more $ if you have a good tactical way of fine-tuning entries. Thus you are sort of compounding. Especially if you take profits on highs of the legs and then enter again on Pb’s with even larger positions as opposed to just holding a long position and not adding to it, or even adding to it on PB’s.

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volpri,

Thanks for sharing. This very good logic.

Are you suggesting that if the trader identifies the trend as long, entering long trades increases a trader odds/possiblities of a win?

What I am learning from trading intraday is Be Apart of the Trend of the moment and my odds of winning on a trade is high, and I am not wrong for taking the trade. I am also learning that my entry don't need to be precise, just take the trade when the price is moving in a clear direction that is somewhat obvious. How can I be wrong trading in this fashion?

 

[ironchef]

An alternative is hold long positions and add to it on PB’s.

But everyone here said in trading one should never average down?

 

[padutrader]

But everyone here said in trading one should never average down?

yes...never average down...a losing position

but adding to long positions on PBs is adding to a winning position..it is known as pyramiding and many pros do it