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Broker: Advantage, Trading Technologies, OptionsCity, IQ Feed
Trading: CL, NG
Posts: 1,038 since Jul 2010
Thanks Given: 1,713
Thanks Received: 3,863
OK, cool. The last thing we need is to argue over something like that, lol! Whatever works best for each trader is great. There's no best of all method out there. It comes down to the individual obviously.
I'm a firm believer in using bigger picture context to stay on the right side of the market when trading the intra-day swings. I too, look at range bars in addition to a 5 minute chart for my intra-day set ups and agree that there certainly was gold in those last few days of price action.
One thing that would help is the micro context that provided the reasons why you went short. Judging from your higher timeframe, price broke above the range and could have just pulled back around the red line at 1.3021 and go higher from that point. Providing this micro context is in my opinion as important as the macro context. Just look at the ES today, quite a directional move no matter how many high volume nodes were crossed during this trip upward. The cross over of the falling trendline was obvious though.
Broker: Advantage, Trading Technologies, OptionsCity, IQ Feed
Trading: CL, NG
Posts: 1,038 since Jul 2010
Thanks Given: 1,713
Thanks Received: 3,863
Well, the market ran up to a low volume area and lost momentum. That low volume area also happened to be October's swing low so upside resistance was pretty clear. I also observed a lot of selling at this AM's swing high which suggested potential rejection at these levels. I took all of those items and found a good entry on my smaller time frame charts. If I were wrong, I would've simply got out. I was able to scale out on the way down and finally cover my remaining position at the next HVN where price ended up consolidating for the rest of the day.
Equities diverged from the Euro today which I did take note of but with it being year-end, these things happen. At the end of the day, I take trades that appear to make sense, if I'm wrong I get out and look for the next set up. I don't take trades just because another sometimes correlated market is doing something. Sure there's an opportunity for a convergence trade at some point but that's not my method of trading.
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I feel like I must be a bit of a muppet but how do you guys work out from that one message and screenshot all that R:R and % return? Or is this some sort of currency trading in-joke that I haven't figured out yet?
Hopefully Santa's gonna bring me that Forex for Dummies book I asked for.
You can discover what your enemy fears most by observing the means he uses to frighten you.
Some chart analysis of recent activity in the 6E. It could be clearer I suppose, but
I don't think it's too bad really. Very basic and standard stuff. No Fibonacci or moving averages.
I think the only thing such chart analysis is good for, is if you are doing a 5 min guest spot with Maria Barturomo. the best way to become a successful trader is to search for a market phenomenon you identify with and trade it. I.e I am gonna trade every breakout/down in an up/down trend, or every pullback in a trend, or every double top/bottom at resistance/support, or every divergence in a weak trend, etc. Find one thing and trade it every time it setups according to your rules. Your trading will become fluid and automatic, no more second guessing, no more hesitation, no more psychological battle on every trade.
After a while, you will only have to look at any chart for 3 seconds to know if a trade is setting up, and you will know several bars before hand if a potential trade will or will not trigger. If you want more trading opportunities, find a couple of other uncorrelated markets and trade the same setups there as well. I only trade 2 very specific setups, and I do it on one index futures, one currency futures, and oil futures, so I look at 3 charts. I only need to look up at each monitor for 3 seconds each and know if I have a potential trade within the next several minutes or so.