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I agree....and for me it looks like that the market is waiting every day for a while now. Yesterday FOMC Minutes (more or less it came out as a non-event), or rising / falling bond yields, rising corporate taxes, today it's JP again, and tomorrow another Fed member....just name any 'justification' to do absolutely nothing.
"If you don't design your own life plan, chances are you'll fall into someone else's plan. And guess what they have planned for you? Not much." - Jim Rohn
Back from my outing to find the NQ just futzing in that range.
I highly respect how you and a few others trade. Take a trade with your SL and TP set. I have tried your 3 range bar but found it to fast for me. I have spent countless hours with Renko/UniRenko only to find that a 2 minute chart seems to provide me with the info I need to create my own edge.
I can't get more than 20 minutes of 3 range data on my chart (43 in screen), so I can't seem to be able to study it properly. Obviously, Range charts are superior for interpreting structure, but make it difficult for me to find the "out of bounds" trades.
My basic premise is: High volatility, looking for price where it "should not be". Far from the mean. Indecision of dominant players. Whipsawing.
In the example below, price flies back and forth through the 20ema/20sma with the 200ma mostly flat.
If price is far from the 20 and the 200, I don't mind taking a counter trend trade as in the double top at the 50 level as it is not a trend.
Then price shot down through the 20 then through the 200, yet the 20 was still above the 200. So to me, price does not belong there and there is a high probability that it will spring back. Plus there was a price rejection at that level. On the 2 minute there were about 10 rejections between 10:13 and 11:21 EST on the ETH chart near the 13700 level.
I know this sounds crazy to probably a large number of traders, but I somehow just love the huge swings that occur at the open (when they happen).
Patience and boldness definitely play a large part in this type of environment.
I have included the chart from this morning for your amusement.
I read it and read it and read it. Everytime I read it I come out with something new!
This MUST be a universal trading truth that no one advertises. We are almost all guaranteed to have to go through all that. And your still experiencing after 10 years!
Im in my 6th year. Its kinda crazy to say im just finally breaking even. I have along way to go. And alot of hardship before I get where you are but thats is the truth about day trading. At least I notice now that it WAS ME ALL ALONG. I'd wait and wait then go in... it would turn... I would panic and reverse... then it turn... then I'd say F-this I'm holding... !!@^#*$... you get the idea. Very REACTIVE.
I'm learning so much from sir Lancelottrader. Even though it's not the way I trade. Your honestly and clarity and ability to articulate the emotional side really sheds a light for me. (Move over Mark Douglas and Brett Steenbarger)
To me its ALL emotional. System rules yes but no emotions?
Trade like a robot they say. I think thats impossible. Mitigated for sure with a time tested system, confidence ect but none? Good luck.
Trade an algorithmic system? If you think that'll get rid of the emotions... you've never done it.
Al Brooks likes to say when people ask him this question is "trade the "I don't care size". Meaning take trades where the stop is where it should be and yet the loss would still be so small to not affect your overall account or "emotional account".
One last thing. I listened to Lancelottrader's webinar with futures.io a few times (it was that good!) One thing that blew me away was he something to the effect of (Im paraphrasing here)
"After years of trading and losing and looking back through my records I knew I had a good system and if I had an EMOTIONALLY STABLE PERSON to trade my system I'd be PROFITABLE!"
That was a revelation for me. A twist on the old "if you just get rid of your mistakes you'd be profitable". Which doesn't really mean anything. If I knew HOW I'd be profitable already.
But I do...
Take a beating. Learn something. Get up tomorrow a bit better and take a beating. Learn something. Get up the next day a bit better and take a beating. Learn something.
Thank you for that. I say whatever works for you is the right way. I am always watching my 2 minute chart and I use the 5 range (not 3 range) to time in the moves in order to have the lowest risk possible and keep my stop generally behind an area that's a swing or support/resistance. I try to predict as little as possible and never trade just because price is at a level. I will however closely watch the price action at certain levels and the way the 5 range bars print at those levels to me is a form of "tape reading". But..certain days require different strategies and the key is to figure out what type of day you are dealing with before too many losses occur.
Thank you for your reply! Sorry, I did adjust to the 5 R-Bar and created a new chart and even tried the 10 R-Bar. I understand why and how you use it. It's obvious you have a good system.
That big question of "what kind of chart can I interpret so I can glean some movement that I believe will go in my direction".
Since I am a little on the ADD side, I have to look at as little as possible. The moving averages force me to see if they are sloping or flat. The 20/20 ema/sma are colored to remind me of the latest direction. The diverging of the same can (if I happen to notice) show me the strength of the move accompanied by how far/fast price is moving from said Ma's. I'm sure one single colored SMA would suffice.
Anyway, every chart tells a story huh?
I concur not to just buy or sell at an area. I look at the velocity of the move. Possible reversal points. Then just sit on my hands til I believe that exhaustion has taken place. Since I put on a feeler trade, I give the first contract enough breathing room. Then if price moves my direction, I can add. Sometimes it means hitting the buy/sell button as fast as my finger with go. Of course this is with the MNQ. Commissions are higher, but it gives me more options and suits my strategy. Most trades are just minutes in duration.
Enjoy that Florida warmth. We still have the woodstove going as we had a little snow shower this afternoon.
Always enjoy reading your posts!
Ps. I forgot to mention that I also employ Bookmap.