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I love the ABC correction. I read stats on this pattern in a book and I forget the number but there was < 50% chance that price will go below the C. The odds were good, maybe 20% or so. This is a high probability trade.
I have to weigh in here. If one doesn't understand price action, adding a bunch of indicators isn't going to give clarity. Especially if you use more than one because then there's 4+ combinations as they agree or disagree etc.
I suggest going 1 week on sim without any indicators. Try it, you may like it.
In my opinion an indicator is just to help you read the price action. To add an extra confirmation. Or possibly keep you out of a bad trade. It's not to just take signals blindly (which is why automated strategies usually don't work) but to say "this looks like a good short setup.. wait sharky's dot is green maybe I missed something.. oh yeah price made a HL I'm not going short here" or "this looks like a good short.. ok sharky dot says short that's my confirmation I'm entering".
One more thing: Keep in mind guys that entries are the easy part. It's the exit that's difficult.
U.S. Futures don't all open at 8am. If you're new to futures I suggest trading stocks until you get the hang of it. Once you're consistently profitable with stocks then you can go to futures when your position sizing is high enough..
Al Brook's book is about trading the ES day session & stocks but the same concepts apply to any market. For example if you want oil you can trade USO or OIH during cash hours. If you want CL you can trade 9-2:30. I find after 11:30 CL is more risky..
So it's different for each futures contract. Forex is at 8am. Euro futures pit 8:20 but has a lot of activity starting with the forex open. What I'm saying is you have to know this stuff to trade futures..
I used indicators for years. After five month of PA only, I went back to my indi-collection. What the indi is showing me, I can see now in advance. But I have to stay more constant (for hours) with the chart.
The only thing I miss and what i am thinking about for the future is divergence (standard and hidden).
You missed my point Paris, "Clarity" was referencing Sharky's approach and the lack of a "bunch of indicators" (chaos) and replacing them with simply a few dots (clarity). I do understand the need to know price action as well especially around key pivot points.
If the dot's don't help, and you don't need an indicator, why are you using them?
I've always thought an indicator was there to make reading the chart easier.
I'm sure the reason you are using this one is because it helps you see what is there.
That was why I asked if you had posted the indicator files.
Understanding what the indicator does is the key in the quest to understand the price action.
Thanks lolu for letter size, so I don't need my glasses...
Just for clarification. With: "I have to stay more constant (for hours) with the chart", I mean I have to sit in front of my screens all the time. This has nothing to do with being in the market.
When I look at a chart on the fly, I see or don't see what is going on with or without indicators. When indicators, they tell me when to go in and out. Without indis, I have to work this things out of the PA. For me this needs always some time to "feel" the market. Entry is not the point. Its more about the exit. That's also the reason why I trade most of the time only two markets at once. IMO PA is not to trade while watching TV and drinking beer with friends, that's easier with indis.
The question about PA and scalping I don't understand. I scalp most of the time and with a good setup I let part of it run as a swing. Scalp in ES for me is 6 ticks and more.
