First time trying to teach the way I trade the ES. I have been trading the ES for almost 10 years now, full time from 02-07, then started another business and then traded it part time up to now. Years ago I could hardly see the price bars under all the indicators "I had to have to trade", needless to say I never really made a lot of money that way. I have tried almost everything under the sun to make money, now this is my opinion but price rules and anything you look at should only help you confirm what you SEE on your chart already.
Scalping the ES can be fast and deadly if you don't already know what you need to do, before price gets to you! Nothing can help you more than knowing how the ES moves, and the only thing that can teach you that is TIME watching and SIM trading. Over the next few weeks I will attempt to show, educate, and teach how I scalp the ES for 2 points a day. Anything I say is just my opinion, right or wrong, not trying to get anyone upset.
For my set up, I tend to FAVOR the FIRST pullback after a TREND CHANGE. Depending on how the day is shaping up helps me decide if I will take the 2nd or 3rd set up in that trend. Please REMEMBER when I am Scalping, a TREND might last only 5 minutes, so don't get married to any 1 trade.
Money management: I hate to teach this, that is up to you, I will give you the guide lines that I tend to follow. I like to get in and out fast, I like to take money off the table when I have profit. I tend to exit 2/3 to 3/4 of my trade at 2-3 ticks, hold the rest for 6 ticks after a BE stop....That's me, as you get a feel for this you need to see what works for you.
Charts: "Trend Chart", I use a Renko 2 tick size box
"Trading/Entry Chart", I like the 350 Tick
Trend: If the Renko Bars are Above the the Dark Brown 21 Donchian Channel "Mean" line = UP TREND
If the Renko Bars are Below the the Dark Brown 21 Donchian Channel "Mean" line = DN TREND
You should be able to "SEE" this, when bars are trading around the line, be careful, just wait, the trade WILL come!
Pull Back = Renko price bars are trading back near the orange 10 DC Mean line and the 21 Mean line
Long Entry = When the Renko chart breaks out from below the line to above the line, then shows a pullback to towards the lines look at your 350 tick chart......IF the upper Donchian Channel (DC) has moved up, AND you can SEE SPACE between the price bars and the DC mean line then enter your trade entry at or a tick above the 21 Mean line for your entry. Picture are worth 100 words so I will try and teach off the charts.
Short Entry = When the Renko chart breaks out from above the line to below the line, then shows a pullback to towards the lines look at your 350 tick chart......IF the lower Donchian Channel (DC) has moved down, AND you can SEE SPACE between the price bars and the DC mean line then enter your trade entry at or a tick below the 21 Mean line for your entry.
You can post questions/charts here and I will do my best to answer them for you, I work from about 4 in the morning to 4 in the afternoon, and I trade off my iPad during the day, but I will get to you.
I will attempt to attach a workspace or at least the two chart templates for your ease.
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Here are the morning setups for friday, even the "slow" days work well. also will atempt to attach a sample workspace that will set up your charts, down load the TimeZoneColors indicator if you want that....
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Ok, I did another example of the morning secession for Friday. I tried to go into more detail as to what I look for. The "space" I look for between the price bars and the mean line is one of those hard things to put rules on. By watching the ES over time you get a feel for what you need, also looking back for back testing the setups it is hard becouse you don't get a feel for how fast the bars were plotting. Remember the ES likes to trap traders by fast moves in one direction and then retracing to stop them out, the "space is created by this faster move and then retraces 50% back to the mean line to stop the week money out....THAT IS WHERE WE WANT IN!!
Stops: I have not talked much about the stops but on my DOM I have it set to 6 ticks and will change that if I need to after I am in. I like to keep it outside the opposite outer 21 DC line if possible.
If you have any comments or questions please ask, I will try and give a detailed chart every day
Last edited by jwdixon; May 30th, 2011 at 10:05 AM.
Reason: changed a word
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Tuesday Morning trades, if you look at my charts you will see the one loss is due to me tapping my iPad wrong and entering me, shouldn't be in so I just exited at market, the others are my trades for the morning, you will see that on the second short after not getting filled about 6 bars earlier I was getting worried it might turn and exited before my regular profit targets, again thinking too much....
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OK if anyone is reading this, here is the first example in the afternoon time zone, also this has the first example that shows why you wait for the DC channel to move up and then get the pull back. I missed this trade, kids last day of school today and was away....OK I made my money in the morning....
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I'm not really sure if that really is the template file....I tried.
The charts are not to involved, I like to see the price bars and not a lot of fluff....tried that, information overload and I couldn't make up my mind on what to do, something was always in conflict.
Just set the DC channels to colors that work for you with your background, then if you need help with the time of day...( I DO)....add the TimeZoneColors indicator, which you can download from the forum, and you are set....
Good luck and just remember screen time with any market is the key to learning how it moves...
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im into renko charts as well
i keep one at 2 and other at 4 opened , the 4 renko helps me confirm some signals for the 2 renko, and vice versa.. sometimes when market is faster, i focus on renko 2 solely.
i use linereg and hh/ll as entry points + the d3spotter indicator of the forum for divergences to confirm my entries.
pretty much it.
i will start a journal too, maybe some people have some insights..
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