I trade using bounces off yesterdays OHLC levels on YM and NQ. Works out rather well for me
Price must violate an OHLC level by a certain amount of ticks or points, then come back to that OHLC for a bounce.
Exchanging ideas and observations would be great.
I don't like any history, I use ( along with other setups ), if the market drops some pips, then goes sideways for say 20-30mins without making new lows, then I'll try to get in near those low's, tight SL and see how it goes, generally get big moves off this kinda long time ish supply / demand area.
Also worth noting, double bottoms have good odds on causing a reactionary bounce, triple bottoms generally fail, newbies ( me years ago ), wuss the double, take the triple and lose and wonder why it always happens to them LOL
Thanks for the input. I've noticed that 2nd bounce off the LOD, but like you I'd never touch a 3rd one.
Sorta like my OHLC bounces. I'll take the first time, might take the 2nd time it bounces, but not the 3rd.
On the YM, I like for price to violate an OHLC line by 12 points, then come back to it and I'll enter with a tight SL, and go for 9 points.
On the NQ I like to see price violate an OHLC line by 2.5 pts at least, then I'll take a bounce if/when it comes back to it, tight SL and go for 2 points.
Both these mkts, and the ES and the TF, also can bounce off their open print. Draw a line at the Opening Price of the first 1 min bar of the day, and watch. Some days it can be a definite "line in the sand".
In OHLC bounces, I don't let price get past the "line", I'll set a limit order a tick/point into whatever side it's approaching from.
On like a LOD setup, do you let price extend beyond and THEN enter when price comes back to the exact LOD level?
Last edited by JohnPiper; June 30th, 2014 at 08:53 AM.