Quote from Jahajee:
AN INTRO, rambling on...
I use 1-m, 5-m, and 60-m ES and NQ charts. Lately, I have
focused on Es scalping.
I prefer scalping against the trend. I particularly enjoy scalping against markets that are dropping or rising quickly, in a big range day, like this week. It seems to me that markets moving quickly tend to overshoot, especially on the downside,
The key to scalping is to keep losses small, and to actually take these losses rather than 'hope' for the markets to come back to you. It may eventually do so but by that time you would have ruined the trading day by holding on to your cherished egoistic position that you want to prove that you got it right.
My position size is 8 lots, usually entering all immediately or in two entries but I begin to scale out as soon as I have 2 or 3 points profit and set a stop at break even on the rest. Commissions are quite low so I feel free to trade as much as I wish without being bothered with commissions & slippage. With less liquid markets or in fact any market other than ES and NQ you would consider the cost of commissions & slippage.
My tools: a momentum indicator - basically a 10-bar momentum on the ES 1-m chart, with a 4-bar average of momentum and an upper and lower momentum band that is the 30-bar average of momentum. I have oversold and overbot momentum lines at 30 and 70 % of the momentum average.
Next I have overlaid on the above a very ST RSI - 5 or 7 bars
And, I find quite useful the Awesome Chaos oscillator which is a 5/34 oscillator, you can select other values.
MY price chart is 1m ES candlestick, with ST MA - 5bar, and long MA - 200 bar. I have 10-bar breakout high and low indicators and pivot high and low 5, 10, and 20 bars.
I also have a 1-m TICK and VIX chart on another PC and several charts on another, and Bloomberg online TV and NY TIMES etc on another.
I have Multicharts and TOS, as well as backup to broker.
I have a trading system running live based on the Awesome Oscillator but I am a discretionary trader; the tools provide me with a visual image of what is happening, the trading system buys and sells and exits allow me to track what is happening and than make decisions as to enter and exit.
My trades may last as long as 5 minutes and as short as 30 seconds. I only care about market direction during the duration of a trade, I do not care if the market is going up or down in the next 15 minutes or hour or tomorrow. My policy is to take profits and move on to the next trade. Exit quickly - win or lose, and get on to the next trade.
