Two Questions For Practicing Day Traders

[SunTrader]

This topic deserves a more in depth discussion.

I am assuming I buy on ask and sell on bid as that is what I used in my real time paper trades. The difference between bid/ask is usually $0.01 and my limit order is in $0.01 increment. In live trades with MO I often did get fills that split the difference between bid/ask.

Trading with 1 minute chart, sometimes I executed several trades within a few minutes time span. If I use limit instead of market order, it usually took seconds instead of almost instantaneous to execute (sometimes no execution) if price moved too fast.

Lately I experimented with timing my MO but the outcome is not satisfactory because it is usually counter trend.

What should I do?

Well admittedly it's a lot more simple with futures. See the bid buy the bid, see the offer sell the offer. The spread is the spread and is almost always narrow (especially during RTH session).

I plan my entry (ex a long) to hit right as price is ticking down on a pullback, almost always getting filled sometimes at a better price. Then when it comes to time exit as price is ticking up I purposely enter a limit at or below current price. Again almost always getting filled, sometimes at a better price.

Of course there are times when an entry was a mistake, or for an exit when price is really ripping but I don't expect it to last - in either case a market order is used bam I'm out.

It took me a long time to understand the mechanics of it, but after it happening just by chance a few times I thought why not.

HTH

 

[padutrader]

What do you mean by inside bars?

are you above 60?
anybody between 8 and 30 would just google and find out anything you want to know

 

[padutrader]

Trading with 1 minute chart,

you are pro
you should be teaching us

just watching 1M makes me dizzy

 

[ironchef]

are you above 60?
anybody between 8 and 30 would just google and find out anything you want to know

I thought you were talking about inside bars, drinking, after work.

 

[ironchef]

Well admittedly it's a lot more simple with futures. See the bid buy the bid, see the offer sell the offer. The spread is the spread and is almost always narrow (especially during RTH session).

I plan my entry (ex a long) to hit right as price is ticking down on a pullback, almost always getting filled sometimes at a better price. Then when it comes to time exit as price is ticking up I purposely enter a limit at or below current price. Again almost always getting filled, sometimes at a better price.

Of course there are times when an entry was a mistake, or for an exit when price is really ripping but I don't expect it to last - in either case a market order is used bam I'm out.

It took me a long time to understand the mechanics of it, but after it happening just by chance a few times I thought why not.

HTH

Thanks. Appreciate the suggestions.

 

[ironchef]

Inside Bar Pattern Explained - Trading Heroes

Thanks.

 

[speedo]

Inside bars are consolidations, on a lower time frame they often appear as a standard pullback. As such they are breakout patterns in trends....in trading ranges, not so much except as scalps.

 

[tiddlywinks]

No one has mentioned Harami and Engulfing candlestick patterns?

Both Harami and Engulfing, are 2-candle patterns, with 1 candle being an "inside bar".
Look 'em up... The previously posted Inside Bar Pattern Explained link is nothing unique. Just saying.

Good trades to all.

 

[SunTrader]

I posted (#144) a chart with one minute SPY Inside Bars. Simple (not SML) is best.

 

[ironchef]

I posted (#144) a chart with one minute SPY Inside Bars. Simple (not SML) is best.

I went back and looked. You are right.