It's usually best to wait for the market to "declare" itself before jumping in. This means waiting for the first pullback. This equates to what Linda Rashke would call the "first cross" trade. Although the trade is a 3/10 oscillator trade it's the same no matter what you call it. It's probably one of the highest percentage trades that exists. The second pullback is usually pretty good too. But after that your pushing your luck. My focus is reading price action not indicators. Learn to spot basic patterns, double tops and bottoms, trend identification (higher highs, lower lows, lower highs, higher lows) reversal patterns (head and shoulders) etc. trendline breaks.
You can enter at the market as the trend reasserts itself or have a buy/sell stop sitting at a key number of some sort. (bracket play)
Last edited by Jeff Castille; August 30th, 2009 at 12:56 PM.
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very smart trading i scalp almost the same way nice to see you trade like that,alot of good traders trade the same as your describing so i advise everyone to listen to this guy he knows what he is talking about and i dont say that often...sharky
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i look in three frames (like 55, 34 and 11 range or point-o chart). i do not trade if market is choppy. but in the most time he is trendy in one of the three frames. i look at the higher frames to see: trend or consolidation or ranging.
my indicators are gmma, gmma consolidation easc and stepma and ninjatprice action. all is similar with jeff and sharky.
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Point of clarification from Jeff/Sharky. When you guys say you play the 1st pullback.. Are you actually playing (entering) the actual retracement itself -OR- are you playing the continuation of the initial direction once it begins.
Personally, I like to see the 14 HMA change color, and the candle change color. I guess I'm the type that has to see it to believe it. Often I'll put a buy/sell stop 3 ticks (YM) beyond the recent swing high/low and let the market take me in knowing that if that price is reached the 14 HMA and candle will be the color that they are supposed to be. (Price action) Know what your protective stop is before you enter the trade.
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