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Daily Charts, Bar Patterns
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Daily Charts, Bar Patterns

  #11 (permalink)
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Well, after carefully going back into the SS journal and entering all the trades, they didn't look quite right (from the Control Panel Strategies drop-down) so I generated a Performance report and exported it to Excel. Little did I know that it would wipe out everything I had just worked on the past 30 minutes. Usually I hit the save button all the time when I do stuff, this time I didn't. So I lost it all.

But I like those reports and will reconfigure my SS to incorporate the Ninja columns and then just add some notes at the end of each one, probably from a separate text file I keep for notes during the day. Simpler. And good stats.

This one includes 2 overnighters I did late last night, both winners, so I ended up with about 2.25% gain on the day, which was a rough one.

The Ninja SS does NOT show stops, PT's and RR ratio so I still have to add that in after generating their report. Clearly, this is going to take a little time to get into a regular daily system that is presentable.

There were too many trades to go through in detail like yesterday. Suffice to say I was underwater, but underwater in SIM is not the same as in live trading, although I have done pretty much the same thing in live. If the trades that ended up being big winners had been losers (and the one at the bottom of the chart came within a tick of being stopped out) in live trading I probably would have quit in disgust and nerves, with a 10% drawdown. That is why I have not been making money yet in day-trading. About 85% profitable days reaching the 1% profit target, and then one terrible day in which all the profits get wiped out and I am slightly lower than I started. This is why I am working on money management.

In retrospect on today: the BIG mistake was :
a) moving stop to BE- on short trade after 9 ticks heat and missing daily profit target hit a minute later - did NOT follow rules.
b) not taking daily profit second trade when I had it - NOT paying attention.
c) not moving stop to BE+ on second trade after daily profit target (but not trade profit target) exceeded. This to prevent having to come back from underwater - NOT paying attention.

Reason: not focused. For some reason started recording journal within seconds of second trade being entered and didn't even notice that daily PT had been hit, that a bar had formed giving me a clear BE+ stop exit price, and before I knew it (still typing in SS) was stopped out and it was downhill after that for an hour or so until I regrouped, went for a longer term profit target albeit with same initial risk, and patiently waited to recoup losses. If had not been greedy and exited both contracts at PT1, would have been up over $150 on the day (3%). Instead ended up for little over BE (not counting the overnight trades).

In my defense re #2 exit on the big winning combination, I continue to have problems with Ninja in that when I connect/reconnect it changes some of my settings, including accounts shown in DOM and on chart, in this case the trades I entered I didn't notice had the trailing stop option enabled - which I had previously turned off - and the #2 contract was stopped out because the trailstop moved there in a fast market as #1 exited and although I tried, I did not have time to move it back down. If I had succeeded, I would have got out at much better price and made profit objectives (and more) in the day-session. But there are no excuses in this business, so what happened, happened.

There are some good lessons from today, but I am and was too scattered to learn them, so I am not happy with the entire day process-wise.

PS. On final review of SS report, notice that my actual Trade #2 exited for +2 to make up loss from #1 and the one I have been calling #2 was #3. If I had not exited #2 early, daily PT would have been made. So three in a row potential winners, ended up with 2 BE's essentially and one loser. That's poor trading! But also: that's trading!

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Last edited by cclsys; November 24th, 2009 at 05:46 PM.
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  #12 (permalink)
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Yesterday re-tooled my RangeBarHighLow indicator to work properly with Renkos since I visited the MedianRenko thread and decided to take another look at them. I like Japanese things usually - although for some reason I still prefer OHLC to candles. Maybe I should try those hollow candles but I don't think I have them or have seen a download for them anywhere.

In any case, the RBHL works great with Renkos. The main reason I didn't ever look at them was not knowing where the highs/lows were going to be, but now that is fixed. Even the default Renkos are quite workable with this plotting feature. (attached uses Median Renkos). Next I would like to get it to work with PF but that will be harder.

Then I coded 'Ash rat' inspired by the TRO Rat thread which was closed but which contains some interesting information along with far too much fluff. Frankly, I got more from his attitude and use of statistics than any sense of clear method, though if I understand aright he basically uses average daily ranges to calculate when a possible low or high is in (and he only buys lows I think), and then after a bounce of X% of that daily range from the probable Daily Low, he buys any time there is a pullback and then a higher high, i.e. he buys up bars. Something like that. It makes a lot of sense and jives with several things I have been mulling over of late, principally sticking with one direction and not changing sides too often. If the longer term trend is up (or whatever criteria you use, say it's under Band 2 in a Fib Band type indicator), you buy and all you do is buy.

But in working with the Renkos and these ideas last night and developing the AshRat indicator which knows what the high or close of a Renko is going to be, it occurred to me that Range Bars, and especially Renkos, are like bars that visually display an ATM strategy, so working with them to train with MM I think could be extremely helpful. In fact, along with generally goofing off the next few days and hanging out with friends and drinking too much homebrew (I live in rural area remember!) I would like to build the current 'AshRat' into a money-management training indicator working on Range or Renkos during market replay or live Sim. I tried to do this with RatioSysBand indicator (in another thread somewhere) but the coding went above my paygrade.

In any case, here are two pictures. One shows at TRO (rat) indicator that basically buys HH bars once a low has been put in using something that is close to a 5 bar Donchian approach, or sells a LL once a high is in. It's not based on the Daily Range approach, just swing after swing.

I made the mistake of loading this with Renkos, which it cannot see well, and also did not realise that the 'rules' assumed by the indicator are to buy the buy trigger only when the close is above it, not as soon as it is hit. I think this is not the method, but it is how the indicator thinks, so working with Renkos in a rather fast - and unusually choppy - gold market this morning with a new indicator that I didn't understand was difficult. After an hour or so I was down $700. Then I switched to a Range Bar chart and understood its logic better and managed to get nearly all of it back, and then starting going under again as I was getting very tired. It's a fast-moving approach with 5-range bars - at least it was today.

At the same time, I was using my own indicator on a parallel 5 range chart (also attached) so that was a bit confusing. But I knew that would happen and after two hours am thoroughly familiar with both approaches and can work on them further in a more responsible fashion.

There was something very relaxing and simple about having such incredibly simple rules. No volume. No SR. Just simple price bars, the indicators just showing basic information about the bars.

Comparing Renkos and Range bars, clearly Renkos hold a trend longer. However, they can get very badly chopped. This is perhaps choosing bars that are too narrow for the market. But I personally need to work with about $100 stops for money management reasons. I think an account should be able to trade 1% risk per $10,000 = $100.00. So a 5-bar Renko has an 11tick $115.00 stop already, and a 5 range bar has a 7 tick $75.00 stop so that is what I prefer to research, at least for now. Using much larger ranges to determine trend makes perfect sense, but not for this sort of entry and exit money management training.

Because you know the range of the bars, you know your stop before the trade is entered and have a PT as well based on whatever RR ratio you want and then get a sense of what works and what doesn't. Today I ended up with a 7 tick stop (the range bar plus one tick above and below), a 7 tick PT on #1 and a 15 tick PT on #2 which was only hit once I think. But it was a very choppy time I tried this out in.

(I intended to go over to my 'real' charts and have a proper session for the journal but a) I was tired from the intense Renko and Range workout on 2 charts at once and b) the markets are just floor traders picking up money from saps so they can go out and buy emeralds for their girlfriends before bringing home a larger turkey to the wife and kids. At least that's what it looked like half an hour ago. Maybe it's hit 1200 in Gold whilst I am typing!

I know my posts tend to be too long. (The English schoolboy in me!) Sorry. (there I go again!)

But when I have done more work on the indicator, I shall share it and also show some pictures with signals.

I can't imagine trading a Range chart without the RBHL indicator, and it is VERY helpful with Renkos. Works with Range, Alt-Range, Renkos, SbS Renkos, Median Renkos. Very handy. 2.5 k!

Pictures: the one with the TRO indicator: the idea is buy when it crosses the High with the cream-colored hash, and sell when it crosses the low with the purple hash. Sell are drawn only after a buy signal has been triggered and confirmed with a close above them and also some sort of support-resistance criteria has been met in that there is new resistance. Once there is new resistance, the sell hash is active and any time there is a LL you sell. This is better in theory than practice because the hash marks don't change without close confirmation and in fact the method is to buy the HH's at the high and sell the LL's at the low as soon as you know which way you are going. But anyway. There is some merit to this approach and I intend to take a closer look at it over the next week or so especially in regards to developing a money-management training indicator for use with Range and Renko bars in particular. I think quite a few people will find it of interest.

The Ash Rat picture has a simpler indicator though in this choppy market it doesn't look appealing. When there are trends it is nice. Basically there are always two plots based on where the high or low will be. As soon as a close has formed and it's an up bar, the buy plot goes one tick above the high and the sell/stop plot goes to one tick below where the max low will be. Now with Renkos this works fine, but with range bars it doesn't keep track of the possible highs and lows intrabar like the RBHL indy does, but since I have it running, no problem. In any case, it is VERY simple when the chart is not all squashed up to show on the thread, and makes for very straightforward no-brainer type entries and exits. The art is choosing when to be on the buy side for a while and when to be on the sell side versus taking every single little swing every time which simply won't work. But as a training indicator it is simple, good, effective.

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  #13 (permalink)
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Nov 30th. Fast morning action. First trade made daily PT but I held for more and exited at BE+; 2nd trade a basic loser and 3rd trade came within 1 tick of $250 PT and exited on Vol stop for +17 for daily net of $86.8 = 1.73%.

Method: was using 4tick Renkos and just followed the patterns, the basic approach being to move stop up to BE as fast as reasonable to reduce losses, and then assume that at some point would make daily target even if there were a couple of losers in a chop. Did not pay attention to longer trend, other charts, any indicators etc. Just simple patterns/reversals as formed by the Renko formulation itself.
Made daily PT within first minute of first trade but held for more just for training-with-Renko purposes.

I have a good feeling about the Renkos. The way the bars are formulated to reverse only if the price goes against current trend by twice the bar number is a form of money management itself. The bar advances every 4 ticks meaning there is a 4 tick step on a 10 tick stoploss assuming one enters one tick above previous high (when buying).

Trigger Bar high = 1150.50.
Minimum Low = 1150.50 - 8 = 1149.70, so one tick below that is short entry, i.e. 1149.60 = 9 ticks below close of setup bar.

So initial stop is 9 ticks + the one tick for entry above previous high = 10 ticks. If the entry bar goes up 3 ticks, that is its maximum, so at 4 ticks a new bar has formed and the close at +3 (from entry which was Close[1] +1 tick) makes new reversal stop 9 ticks lower at -6.
If the next bar continues up, it will max at +7 and stop goes to -2. Then +11 and stop at +2.

But basically it means that most losing trades end up having a -6 to -2 loss (1-2 bars before exit), and most winning trades have about +7 ticks (2 bars) before turning against.

Very simple. When traded a little more judiciously in direction of overall trend or at OB/OS extremes basis Fib band 2-3 levels, I suspect it will prove a rather simple way of pulling money out of the markets, moreover one that requires minimal analysis, thought, anxiety etc. Simple set up, entry price and stop are on the chart every bar, take the trade, trail the stop, exit at PT which can be adjusted easily based on initial daily PT or clear SR, that's it.

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  #14 (permalink)
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Dec 1. Late start. Intention this am was to wait for decent setup and try to have the first trade be a winner versus just taking reasonable entries, applying MM and ending up ahead for the day.

The set up took about 20 mins to form (from time I started watching) and is obvious from the chart. What you cannot see on the chart is that the 30 min chart had made new lifetime highs with several red/magenta churn/climax bars (overnight session went higher actually, up to 1200), with a day-session gap from 1700 EST yesterday, so a pullback of 10 points to fill the gap was quite likely.

Still, consolidation happened for about 30 mins, the market did not go lower and in fact the trading range had a bullish flag bias with slightly higher highs each time and slightly higher lows. So I took the BO and with reasonable, but not very fast, speed, market kept going up, no heat to speak of, and up to $150 poss. per contract. Exited on Renko Bar LL penetration but mainly to ensure daily target reached on first trade, which it was (6 ticks = $56.00 = 1.12%).

'Einfach so.'
Or, as we say in English: 'Elementary, my dear Watson!'

Chart: I market the original 2.5 tgt with an ellipse and line. After a pullback, the target was hit.

I marked the bar I entered on as H2, though the entry price is marked with the line showing the 'official' H2 entry.
Actually, the large bar that I used as the BO price could also be said to have been a H2 when it took out the previous high. But basically the whole thing was consolidation after a pullback from the daily high and at some point it was either going to go lower or higher no matter how you micro-analysed the bar patterns.

Chart note: a far more gutsy play using the bands - configured around Kama using a 3-13-21 configuration inspired by Cory - would have been to buy the lower band around 10.05 at around 1192.75 which point a target was printed up above at around 1196, i.e. 3 points/$300. Would have taken a while to reach target, but within the entry bar about 1.75 points were quickly available on the 'bounce' from the band. That would have been very gutsy because again from the 30 min perspective, a far deeper correction looked likely.

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  #15 (permalink)
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Dec 2nd: another day with many trades. Having problems with keeping track in journal and paying attention to mkts. Need to work out better routine. Also have not been reviewing % of rules followed which would like to do but since this another day with many trades (because did not take DPT on 2nd trade when had the chance and there were others).

In general followed entry and stop rules, but exited too early in order to protect against losses. The losing trades hit their stop losses.

After two losers in a row getting me to -$242 on the day, decided to trade only long side in order to avoid further whipsaw drawdowns. This was the right approach and basically one of my new rules: when down, choose a side and stick to it until the market has clearly changed direction from longer term chart (i.e. 30 min) or recovery effected. This might take more patience, but will avoid whipsaws.

In this case today, after partial recovery I also put on a double since there were 2 SR zones in play. Market went down to lower entry only exceeding by 1 tick. This trade exited early because I did not notice the stop had trailed up whilst typing in the journal (!) so re-entered, continued with the position (suffering 3 ticks missed in the process) and then exited with DPT reached/exceeded and done.

It is risky to double up or triple up; however I have found that 90% of the time if the market is clearly in a trend (which Gold now is), that it is better to go with the trend even buying lower and lower than to take many stops. This is an advanced approach which, when it doesn't work, can ruin an otherwise good trading week or month and which means that if you get hit, you have to get back in there (in same direction) until recovered for the day.

My problems earlier this year when doing this live was that I was playing both directions. So for example now even if a triple were hit with a net $600 loss (huge by the standards of this model account size), if a solid buy set up then transpires and market is still basically a bull market, there really should be a bounce which with 3 contracts would require only 2 pts for full recovery or 1 pt for 50% recovery. Especially if the earlier buys were all losers (which in this example they were), and if you continue to remain on the same side, the probability of the next long trade being a winner has risen as long as you haven't walked away for an hour and are coming back after a large upmove happened already, or the longer term trend has changed direction.

In any case, that is what I did today and from being down -$242 and making 50% recovery on a single, then put on the double for full recovery and net gain of 2.6% ($130.4).

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Quick review of trade logics for any who are interested:

#1: sold BO down because of Market Profile empty zone + basic pattern. Immediate loser.
#2: reversed on Renko buy and could have made full recovery with DPT but exited for net +$20.
#3: Looking for quick bounce to make DPT at pattern BO level from 2 bars before, but initially had larger PT and by the time I moved it down for DPT it was too late and exited for 2 tick gain to ensure no further loss and at +$35 on the day just 2 ticks shy of DPT. Typing in SS distraction!
#4: bought BO from minor consolidation which immediately went south then
#5: sold BO down which also immediately went north for fast chop losses.
#6: despite recent losses, reversed on Renko Bar BO up at this point having decided to take long only trades until recovered. Took partial recovery profits, but if had not exited early would have fully recovered. PT hit to the tick and I would have been one of the first in the queue so probably filled.
#7 & #8: double. Both at Pattern SR support, the first from High 2 bars earlier, the 2nd from high BO 3 bars earlier. The 2nd nailed the RL (run low) and trade was relatively fast and easy winner after that with little jig involving
#9: accidental trail stop exit from #8 so re-entered immediately at market to maintain position.

So scrappy trading, poor discipline on maintaining PT's to achieve goals (DPT). This has always been a problem for me in daytrading environment and although ended up profitable today, such action on my part would have made for an emotional session with me kicking myself for not holding out, having impulsive desire to jump back in to 'get my money back' and probably getting chopped some more.

In retrospect, with market having just made new lifetime high before I put on first trade: a) only trade the long side b) hold out for DPT. Then would have been done in 2 mins on first trade which is #2 above.

So in terms of rules/percents: overall 50% with entry and stops being mainly well managed, but exits being poorly managed both in terms of not exiting when had first opportunity to make DPT's, and then not holding out for more once trades were risk free during recovery mode.

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Dec 3. Back to my preferred chart having at first monitored a 20-range influenced by Gary's CL thread. It does smooth out the noise but since the action today (after the day-session open) was rather choppy, I found myself holding back. Perhaps that was a good thing but since I am not used to that sort of chart (yet), I went back to 150 tick as the main trading chart with just Volume Patterns and a VWAP fib background. This is my favorite chart and basically I focus on the bars.

Although came out well in the end, I did not do well. Even though spent a good half hour watching market before placing trade, felt rushed and unfocused, not 'in the zone'.

#1 was a late entry after a rather weak pattern SR buy had failed to produce immediate advance. In retrospect, rather than kicking myself for missing it, I should have been grateful and waited for more confirmation before entering on the long side.

#2 was at more identifiable Patt SR support, albeit this SR drawn from pre-market session; such lines are not as important during early going in day-session. Although it's stop was almost hit, basically this worked as it was supposed to do with a nice bounce in short order after the new low put in. On the chart you can see that after 2 red bars, the low was put in with a very narrow range bar - often the best setups indicating high volume/bigger players since this was not a red bar (which counts tick volume). That is where I should have entered #2 or #3 below.
#3 placed after formation of the two climax bars at expected support. I put this on in addition to #2 partly for training but also because the climax bars were confirming that support was due and I didn't want to miss a bounce if #2 was stopped out. Then I didn't react fast enough to move entry down to just above the narrow new low bar mentioned above. That would have been the ideal entry in terms of rules. #1 was fine rules-wise although the first reversal signal without volume confirmation I would usually pass on. This one after the narrow new low bar is something I should have jumped on. But the market was fast and it went straight to my stop entry and off she went.

To be honest, after the double bottom and given this is a strong bull market, to put it mildly, I expected the bounce to go further. But maybe they all read my January prediction here and want to slow the market down so it doesn't go too far past 1250 before the New Year. Frankly, I expect it will be closer to 1300-1350 the way this thing is moving. Asians pushing it up overnight every night and day-session absorbing that, backing and filling, and then grudgingly going up again.

Heard report that JPMorgan is heavily shorting gold and silver. That means the USG is shorting. Reporter said this was averaging into short positions from earlier and although they might have the muscle to bring things back down, if they don't, they could lose a bundle making fundamental US financial situation even worse in terms of financial diplomacy/influence, not because of the losses per se, but because this is clear evidence that US elites are not in the drivers seat financially. Unless there are even deeper plans afoot which involve taking the US out of course. No end of nefarious possibilities just as at any time throughout history in all cultures!

Rules: although was not clear with any of these entries, once in the trade I managed stops and PT's well. Am concerned lest am getting into too many double situations since this is not the ideal approach for a $5000 account because the doubles end up risking about $150 usually. In this case, because I did not have time to either take #3 off (safer) or move it down to above low bar entry at 1214.90 with stop at 1214.20 making the risk on both trades 11 + 7 = 18 = $190 inc. commissions, this was not good risk situation.

So there is some impulsiveness and scatter-brained quality going on here that I must tighten up. Part of this is working with SIM until new internet connection comes through. Part of this is my general tendency anyway which is that once I am trading, I tend to get in and out in 'fast and furious' style without sufficient distance, perspective, objectivity.

So in terms of rules, although basically everything worked out and I followed the rules, #1 really shouldn't have been taken, #3 shouldn't have been taken or if it was not at the old entry price from 3 bars earlier.

So 50% grade on rules.

#1: -$114.4
#2: $175.6
#3: $75.6
Net: $136.8 = 2.7%.

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Last edited by cclsys; December 3rd, 2009 at 11:36 AM.
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Put this one on for fun but also to illustrate the value of keeping track of SR. In this case, given healthy correction underway in Gold this am, drew 2 SR lines on 30 min chart at obvious levels below the market. Lower SR is thick green dotted line on 150 Tick chart.

Then placed order to buy 1 tick above the lower level.

Price went down there to the tick, then immediately bounced back up to Pattern SR level (marked on chart with thin green Ray).

1 minute, 2 points profit, 1 tick heat. Sweet.

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PS. After posting, noticed that my new Donchian-ATR SR indicator 'called' the exact same price. In the same way that when a Fib band is penetrated above and creates a corresponding target at same inverse level below (i.e. Band 1 above hit, target is Band 1 below at that bar), so also these SR zones do the same thing. I didn't mark it on the chart, but you can see that at the point of the high bar around 2300, the lower SR band (inside the more curvy Ichi Cloud) was exactly on that SR line which ended up being the Run Low of this recent move down (at least for now). Even though the indicator looks ugly with its jagged lines, there is something to it. This sort of thing keeps happening with it. Based on ATR expansion-contraction ratio and average Donchian range.

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Can you upload the new Donchian-ATR SR indicator, thanks.

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Dec 4. Big day in the Gold Market with most of the time being at maximum speed rate compared to a normal day. To my surprise, 28 k dialup kept up 95% of the time. Perhaps it has more to do with indicators/processing than bandwidth alone. Gold volume is still tiny compared to ES so bandwidth is a major factor viz. my being unable to follow that one, still it is good can keep up. Next week should finally have highspeed connection here but private company that got the contract to install Motorola Canopy system (radio towers) is so inept that one never knows if it will work. Meanwhile, the fiber optic cable laid down 10 years ago 50 yards from my house remains unused and will never be used. Politics.

Had to wait for things to slow down after report at 8.30 which sped the market up. Huge downdraft selloff. Rapid. Vicious. Then took some retracement sells in direction of trend.

#1: SR-R (SR retrace) sell: 12 tick stop, 25 tick PT, RR 2.08. Loser. Followed rules. This was an SR retracement (to previous low that was broken through). - 12 exit.
#2: SR-P (SR Pattern retrace) 12 tick stop, 25 tick PT, RR 2.08. Marginal winner. If held with original stop, 33 possible so early exit not good. However, intention to ensure no increase of DD in early going when the market is clearly going to present many good opportunities was correct. +3 exit.
#3: VP (Volume Pattern, also SR-P re-entry) Volume Pattern entry (using Cory's Volstop formulas, thank you Cory). Missed moving entry up to below narrow Red Climax Bar which is usually something I would pounce on but market very fast (bar took only 8 seconds to form). In retrospect, should have adjusted tick chart to be less rapid, but usually 150 ticks is about 1-3 mins per bar and, frankly, did not think of adjusting at the time, too focused on price action.
Managed to move stop to RH + 2 which was fortunate, then PT hit not filled and exited on VolStop. + 21 exit.

Net daily gain of $106.8 = 2.1%. Took 5 minutes from start to finish.
Since 20/11 start of journal: Net P/L = $868 = 17.36%.
Need to add W/L % column, av MAE, av MFE and be sure to put in values of heat and possible that do not depend on any adjusted stops or PT's I use, rather the original stops and PT's, also with MFE including furthest move down until a swing is formed beyond the target in order to have meaningful stats over time. Also would like to put in max daily DD, Weekly P/L and suchlike but still working on basic daily recording setup.

Rules: although a fast market, or perhaps because it was a fast market, I followed entry and exit rules well.
Grade: 100%.

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Last edited by cclsys; December 4th, 2009 at 12:32 PM.
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cory View Post
Can you upload the new Donchian-ATR SR indicator, thanks.

Attached below, Cory.

This is the 30 minute chart, the one I used yesterday for a nice SR buy with 1 tick heat. (Lucky). Same thing again today failed (2nd yellow arrow on chart). I am just going to run through some interesting things on this chart involving SR situations including both manually drawn Rays and Ichis. The CCLSR indicator also plotted I did not pay attention to, although it is plotting live and there are no errors in the log so I think this one is working now.

Arrow #2 SR buy: note how this takes place in the middle of a thick LT Ichi cloud whereas the first one was just after price poked through underneath of only ST cloud and a pullback to bullish rising cloud bottom was to be expected before resumption (if any) of new downtrend - which unfolded this morning as it happened.

Note how overnight the price tracked the LT cloud high, stayed beneath the ST cloud low - they were converging. When they converge, this represents a sort of POC area and one watches carefully to see which way it's going to break, because usually it does. If it doesn't, one is in a chop/consolidation zone and best to wait or just scalp mini-moves.

When market broke through to LL's this am, note how the first significant resistance area was a SR-P (SR Pattern) level that had later become an SR level on a retest (within 2 ticks of where I drew it which is at the nearest half point level on this LT chart, i.e. 1196.5). This is the price to which it retraced after initial downdraft to cloud low and another interesting SR line.

'Vol-derived SRP later becomes SR'. This is one I have not introduced/explained yet and I mainly only draw them on LT charts although like everything they are fractal. Only so many lines one can draw! But in this case the breakout beforehand was during the overnight session on very low volume. Here was the first zone with significant volume. There was a large upbar then a consolidation, so I drew the line just below that red bar consolidation. As you can see, that is where the downdraft went down to, also Ichi LT cloud low. I drew the SR line at 1186.5 (nearest half point) and it went down to 1186.3. Generally with LT SR lines I like to see good volume at those prices. With tick charts this is usually a given, but with minute charts one has to be careful. I am using 30 min now to reduce processing/loading with this LT chart because of my poor connection.

As I write, mkt has gone down to 2 previous SRS with volume, one the BO level and the lower one the Pattern level although there is one level lower on that red bar where it penetrated the previous down (blue) bar high at 1159.50 which I should have drawn.

Just sharing the way I look at Support and Resistance which personally I think is one of the key things to pay attention to. When we look at price charts which segment things into time and then have lines moving across the chart in accordance to time, they make shapes that are both helpful and misleading. One could regard price as just one endless (timewise) bar, with price going up and down that DOM for eternity. Support-Resistance lines show key areas on that permanent DOM bar, if you will, disregarding time altogether. Combined with market profile for confirmation (not on chart), they are significant both in ST and LT contexts. I am sure everyone knows this, but part of my purpose with this journal is to articulate (for myself as well as others) how I read the market and hopefully thereby better appreciate those methods/ways which are helpful, and those which are not since most of the time I do this sort of by instinct.

In any case, I have drawn 2 more yellow arrows at places which might prove very good buy areas with a decent corrective bounce now very much overdue - at least in the 30 minute/today context.

Actually, in SIM while I typed the above, the first line entry was triggered. Looking for bounce from 1168 to around 1185. We'll see if that happens. Currently at 1175, so already +7 points (70 ticks) on that trade from 1168 with only 2 ticks heat. This shows how these SR levels are important / valuable to track.

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