NexusFi: Find Your Edge


Home Menu

 





THREE SET UPS


Discussion in Trading Journals

Updated
      Top Posters
    1. looks_one Jeff Castille with 215 posts (430 thanks)
    2. looks_two cunparis with 146 posts (154 thanks)
    3. looks_3 shodson with 125 posts (211 thanks)
    4. looks_4 Fat Tails with 73 posts (189 thanks)
      Best Posters
    1. looks_one Fat Tails with 2.6 thanks per post
    2. looks_two Jeff Castille with 2 thanks per post
    3. looks_3 shodson with 1.7 thanks per post
    4. looks_4 cunparis with 1.1 thanks per post
    1. trending_up 252,656 views
    2. thumb_up 1,369 thanks given
    3. group 124 followers
    1. forum 1,073 posts
    2. attach_file 239 attachments




 
Search this Thread

THREE SET UPS

  #571 (permalink)
 
Fat Tails's Avatar
 Fat Tails 
Berlin, Europe
Market Wizard
 
Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker: Interactive Brokers
Trading: Keyboard
Posts: 9,888 since Mar 2010
Thanks Given: 4,242
Thanks Received: 27,102

THe chart below shows three inside bars.

(1) The range of this inside bar was too large. It was not a NR 4 bar, so I did not take it.

(2) The preferred breakout was to the upside, this would have been a second entry sitting on the lower band of the Keltner Channel. The breakout from the inside bar occured to the downside, so I did not take it. The bar after this inside bar is a reversal and a churn bar. So I entered long 1 tick above the churn bar, which is midrange of the inside bar.

(3) The third inside bar shows balancing action after a strong candle up. Note that the body of this inside bar is above the body of the candle up. This means that the new price has been confirmed. As I already was long from the entry above the churn bar, I only used this inside bar to adjust the stop loss just two ticks below this bar.

Target 1 was at main pivot PP.

Target 2 was at yesterday's close. Target 2 was not met. When the climax churn bar (magenta volume) had been formed, it was necessary to exit the trade 2 ticks below the main pivot PP.

I am still bullish now, because the 15 min chart shows a potential Gartley pattern.

Attached Thumbnails
Click image for larger version

Name:	6E 09-10 (5 Min)  15_07_2010.jpg
Views:	270
Size:	113.0 KB
ID:	16998  
Reply With Quote
Thanked by:

Can you help answer these questions
from other members on NexusFi?
Are there any eval firms that allow you to sink to your …
Traders Hideout
NexusFi Journal Challenge - April 2024
Feedback and Announcements
The space time continuum and the dynamics of a financial …
Emini and Emicro Index
Ninja Mobile Trader VPS (ninjamobiletrader.com)
Trading Reviews and Vendors
Exit Strategy
NinjaTrader
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Get funded firms 2023/2024 - Any recommendations or word …
59 thanks
Funded Trader platforms
37 thanks
NexusFi site changelog and issues/problem reporting
24 thanks
GFIs1 1 DAX trade per day journal
22 thanks
The Program
19 thanks
  #572 (permalink)
 
Fat Tails's Avatar
 Fat Tails 
Berlin, Europe
Market Wizard
 
Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker: Interactive Brokers
Trading: Keyboard
Posts: 9,888 since Mar 2010
Thanks Given: 4,242
Thanks Received: 27,102

And the price action continued....

There were two consecutive bullish Gartley patterns on the 15 min chart. The first one had already produced a bullish breakout during the night session.

During the consolidation pattern in the morning, a double inside bar developped, sitting on the trendline. The breakout occured to the upside, as expected. This was a fast and easy trade. I am still holding the second half of my position.

Interesting observation

I remember that a similar case has already been observed by somebody else on this thread.

The inside bar on the hourly chart developped as well, but it broke out to the upside by a few ticks 2 minutes prior to its completion, so it never materiliazed. This is very bullish.

This is how the best trades occur

A breakout from a 5 min chart triggers a breakout on the 15 min chart. Then the breakout from the 15 min chart triggers a breakout on the 60 min chart. In the end this can lead to a large move over several days. If I only I had the patience to let the profits run....

Attached Thumbnails
Click image for larger version

Name:	6E 09-10 (15 Min)  15_07_2010.jpg
Views:	228
Size:	136.1 KB
ID:	17000  
Reply With Quote
Thanked by:
  #573 (permalink)
 
Fat Tails's Avatar
 Fat Tails 
Berlin, Europe
Market Wizard
 
Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker: Interactive Brokers
Trading: Keyboard
Posts: 9,888 since Mar 2010
Thanks Given: 4,242
Thanks Received: 27,102


I took my profits too early, when price hit the upper border of the range.

Attached Thumbnails
Click image for larger version

Name:	6E 09-10 (15 Min)  15_07_2010.jpg
Views:	244
Size:	136.9 KB
ID:	17002  
Reply With Quote
Thanked by:
  #574 (permalink)
 
cunparis's Avatar
 cunparis 
Paris, France
 
Experience: Advanced
Platform: Market Delta & Ninjatrader
Trading: ES
Posts: 2,565 since Jun 2009
Thanks Given: 1,162
Thanks Received: 2,093


Fat Tails View Post
I took my profits too early, when price hit the upper border of the range.

Can you turn on your chart markers so we can see how you're trading these?

Follow me on Twitter Reply With Quote
  #575 (permalink)
 
Fat Tails's Avatar
 Fat Tails 
Berlin, Europe
Market Wizard
 
Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker: Interactive Brokers
Trading: Keyboard
Posts: 9,888 since Mar 2010
Thanks Given: 4,242
Thanks Received: 27,102

Sorry, never have them on, don't like them, as they cluster my chart. Next time I will put them on for the screenshots.


cunparis View Post
Can you turn on your chart markers so we can see how you're trading these?


Reply With Quote
Thanked by:
  #576 (permalink)
 
Jeff Castille's Avatar
 Jeff Castille 
Northern California
 
Experience: Intermediate
Platform: Ninja Trader
Broker: Amp Futures/ Zen-Fire
Trading: YM and CL
Posts: 2,109 since Jun 2009
Thanks Given: 1,783
Thanks Received: 3,303


cunparis View Post
I forgot the rule about not trading before crude inventory report.

-5 for me. Will not forget next time.


Cunparis.......this trade moved +15 ticks in your favor......how is it possible that you ended up with -5?

Follow me on Twitter Started this thread Reply With Quote
  #577 (permalink)
 
cunparis's Avatar
 cunparis 
Paris, France
 
Experience: Advanced
Platform: Market Delta & Ninjatrader
Trading: ES
Posts: 2,565 since Jun 2009
Thanks Given: 1,162
Thanks Received: 2,093


Jeff Castille View Post
Cunparis.......this trade moved +15 ticks in your favor......how is it possible that you ended up with -5?

My target is 19 ticks.

Follow me on Twitter Reply With Quote
  #578 (permalink)
 
Fat Tails's Avatar
 Fat Tails 
Berlin, Europe
Market Wizard
 
Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker: Interactive Brokers
Trading: Keyboard
Posts: 9,888 since Mar 2010
Thanks Given: 4,242
Thanks Received: 27,102

I believe there is no edge in just trading insíde bars.

If this was possible, we all would become rich, quickly. Many guys who are a lot smarter than we are, would have discovered this long ago, and according to the efficient market hypothesis, any edge would have disappeared as a consequence of their trading.

However, I like inside bars, because they provide for low risk entries, at least if they are narrow range bars. So here comes my first modification, I only take inside bars that are NR4 bars as well. I admit that I stole this idea from Toby Crabel. I also trade all NR7 bars in the same way as inside bars.

Next I need a set of filters, to keep me away from false breakouts. I remember that I had tried to trade squeezes, as described in the book by John F. Carter, some time ago. After the breakout from the consolidation I was trapped as often as I was successful, so the concept as such did not work for me.

So these are my filters for trading inside bars

- at least NR 4
- higher timeframe analysis (trend and pattern) to establish breakout preference
- bar and range analysis (locaction of the bar compared to prior bar and last expansion bar)
- volume analysis (climax and churn volume)
- establishing support and resistance (prior lows and highs, floor pivots, fib lines, trend and trend channel lines)
- reward-to-risk-ratio

I do not think it is wise to a set a fixed profit target of x ticks without looking at the chart. I am also not using a money management stop, but select a stop loss, which invalidates the trade idea, when hit. Of course, the actual stop needs to be smaller than the calculated money management stop.

The reward-to-risk ratio should be at least 1:1 for my first target. To establish the first target, I need to look at support (short setup) or resistance (long setup). My stop-loss is x ticks above or below the inside bar. My total risk therefore amounts to the range of the inside bar + 2 (x + slippage). This needs to be smaller than the distance from my sell stop (short) or buy stop (long) to the profit target.

Or to put in simple words: I want that the profit side of my bracket order is larger than the loss side, otherwise I won't take the trade.

Reply With Quote
  #579 (permalink)
 
cunparis's Avatar
 cunparis 
Paris, France
 
Experience: Advanced
Platform: Market Delta & Ninjatrader
Trading: ES
Posts: 2,565 since Jun 2009
Thanks Given: 1,162
Thanks Received: 2,093


Fat Tails View Post
I believe there is no edge in just trading insíde bars.

If this was possible, we all would become rich, quickly. Many guys who are a lot smarter than we are, would have discovered this long ago, and according to the efficient market hypothesis, any edge would have disappeared as a consequence of their trading.

You're free to believe whatever you like, but I find it a very self-limiting belief.

Follow me on Twitter Reply With Quote
  #580 (permalink)
 
Fat Tails's Avatar
 Fat Tails 
Berlin, Europe
Market Wizard
 
Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker: Interactive Brokers
Trading: Keyboard
Posts: 9,888 since Mar 2010
Thanks Given: 4,242
Thanks Received: 27,102


Just tried to add some value to the setup introducing filters, targets and a reward-to-risk ratio.


cunparis View Post
You're free to believe whatever you like, but I find it a very self-limiting belief.


Reply With Quote




Last Updated on May 15, 2014


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts