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Reading Price Action
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Created: by GarryM Attachments:16

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Reading Price Action

  #51 (permalink)
Elite Member
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cunparis View Post
Hi Garry,

Very good observation about MTF. This is the only way I'll trade on a pullback, if I see that the pullback occurs at a cyclical turning point on several timeframes.

on the other hand, I am having second thoughts about MTFs. For 2 weeks now I trade 1 timeframe only. I have toggled back and forth between say 5 min and 150 tick. If you're trading the major S/R levels then the tick chart just shows noise. So far I'm feeling like I can do without them.

TRO's comments on MTF also keep me thinking about this. Good topic.

PS: You often post BMP files, I think on accident. It makes viewing the images very slow. I think the forum shouldn't accept BMP, I'm not sure how you do it.

Cunparis,

Sorry about the BMP files would jpeg, gif, tiff, or png be the best?

There are many opinions about MTFs and how or if to use them in your trading.
Al Brooks, whose book taught me a lot, uses only a 5 min chart and a 20ma.

I feel for me to not keep an eye on a longer term time frame would be foolish, by just sitting and waiting to strike when everything lines up, helped me cross the line into profitabiliy.

My best trading buddy uses only a 5 min, he has been trading successfully for over 30 years He says MTFs are a nuisance and a distraction, and they are just one more thing to complicate his trading.

Maybe someday my mind will change. I'm just not ready to stop a good thing.

Garry

 
  #52 (permalink)
Trade with the flow
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GarryM View Post
My best trading buddy uses only a 5 min, he has been trading successfully for over 30 years He says MTFs are a nuisance and a distraction, and they are just one more thing to complicate his trading.

This is the direction I'm currently heading. I'm trying to keep it as simple as possible. When I use MTF I often find myself not taking a trade due to something missing on one TF and then missing a good trade. And then taking a trade due to seeing something on MTF and getting a bad one. I prefer simple and take all the setups.

JPG is best cause it's smallest. BMP are huge.

PS: If multiple timeframes work for some people then nothing wrong with it. I don't try to convince anyone, I think there are endless ways to make money trading. No "one way".

 
  #53 (permalink)
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My thoughts...

PNG for best image and file size combination. JPG still better than BMP

Regarding MTF, what I say is don't look to multiple time frames for signals... look for confirmation. Trade just one chart, don't trade three. So if I have three charts up, I pick one that I trade (signals) and the other two are for confirmation.

Confirmation does not mean the same setup and signal. Confirmation means it is heading with me and not against me.

Don't try to take signals from three different charts unless you are already making huge money consistently.

Mike

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  #54 (permalink)
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anchor

Here...here.... I'm with Mike. I trade my trading chart and just before I enter a trade I glance at my anchor to make sure it's with me. Done deal.

 
  #55 (permalink)
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The more I read

The more I read, the more confused I get... I must have a pea brain, or, most of you are looking for something that's not there... and although there are some valuable bits of information in every thread, I think we're all "lost Seekers of the Holy Grail" ... Whatever charts or indicators we use, or develope, or tweek, it's all there in front of us already. It all comes down to money management. Plain and simple. I make $1000 to $2000 a day, 4 out of 5 days, using the same setup entry and exit strategy, and I never deviate from it. I trade only the ES, 2 hours a day. But most days I'm done trading in the first hour, and turn the computer off. Then I go run my other business for 8 hours, and make less than $500 a day. I've used the TVGR Gap Rule for 2 years, everyday. I read about it several years ago, tried it, and it works. I consider myself a beginner, because I only trade the opening gap, and cycle-scalp the first hour, or so. There are so many smart people here at futures.io (formerly BMT). I am intimidated, and embarrassed to even attempt to contribute. I don't know the first thing about programing, how to back test anything. I marvel at most indicators, but honestly have know idea how to use them. Trade Station looks like a kaleidoscope, and scares the h_ll out of me. I keep a daily journal, but written in pencil. I never risk more than 5% of my account, so I've never even come close to blowing it up. I have a passion for making money. But my weakness is in not having any idea how or when to let profit run. Wait for outliers. I always enter 20 contracts, and at 4 ticks cash in 10, and 8 ticks cash in the remaining 10. If a trade goes against me, I'm out. I've tried leaving a portion of the spread run, but felt so much stress, that I wish I hadn't... My chart setup is SMA 200 100 50, EMA 15. Stochastic 3,5, with a 50% constant line. and MACD 5, 20, with signal line at 30, for momentum. I watch the 15min- 30 min chart for the cycle, or short trend, and enter from the 3 min chart with confirmation leading from the %K diverging %D, and MACD leading off of "0", up or down. Day Trading 101, isn't it? I know some of you super smart people here have figured out a way, with high probability, for staying in a trade longer. I would really appreciate some help with this.
Thanks, Patrick

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  #56 (permalink)
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Wow, I can't imagine why you feel intimidated or embarrassed . . . sure, it's always great to improve one's skills and profits, but you've obviously become very good at consistently extracting solid profits from the market pursuant to a well-conceived and disciplined plan. I think you should take a bow and start handing out tips to your fellow traders! I'll be interested to see what other responses your very interesting post stimulates; I"m certainly not qualified to start giving you pointers! To the contrary, I aspire to emulate your simplicity, control and fine results.

Good trading!

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  #57 (permalink)
Trade with the flow
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Patrick17 View Post
I've used the TVGR Gap Rule for 2 years, everyday. I read about it several years ago, tried it, and it works.
...
I've tried leaving a portion of the spread run, but felt so much stress, that I wish I hadn't...

Hi Patrick, thank you for posting & sharing your experience. I want to congratulate you for having the discipline to continue your method day in and day out, that is very impressive.

I googled TVGR and I couldn't find anything. I'm interested in learning more about this. Would you mind posting a few charts with your trades? In the past I've worked on gap trades and I could never get something that was profitable without large drawdowns, so I'm interested.

For your question, here is what I do which you may find useful. I keep record of my trades and note the MAE (most it went against me) & MFE (most it went in my favor, after I'm out of the trade). Let's say I have 10 stop & 10 target. It goes against me 8 and goes on to +40. After I have a lot of trades I analyze this and I put the data into excel and play with it. I try different stop & target values and find out what combination gives me the highest profit. Then I go from my current target to my desired target one tick at a time. In my current setup I go for 6 ticks. After I get some more data I want to increase it to 7.

I've found that pushing out my target will lower my win rate. This is ok as long as it's more profitable that way. But having a high hit win rate also has it's advantages psychologically especially when trading many contracts. I'm not sure I'd trade a little more money in exchange for having more losing days. I'm looking for a stable income.

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  #58 (permalink)
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Hi cumparis, Google for Trader Vic Gap Rule, I think this is it.

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  #59 (permalink)
Market Wizard
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cunparis View Post
I googled TVGR and I couldn't find anything.


Perhaps this will help:

Trader Vic 2 - Victor Sperandeo

Rejoice in the Thunderstorms of Life . . .
Knowing it's not about Clouds or Wind. . .
But Learning to Dance in the Rain ! ! !
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  #60 (permalink)
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Patrick, I agree with cunparis -- if you're willing, could you share some charts of your trades, and perhaps explain your entry conditions and your stop strategies? Your current exit strategy seems straightforward, but how do you use TVGR to enter on a 3 min chart and where do you put your stops?

I know you asked for assistance, rather than offered it, but I think you've got things you can teach us also. Thanks!


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