By divergence i mean reading of upvolume- down volume was side ways and reading of Advancing Issues - declining issues was -ve. When both of them in the same direction, we have ONE TIME FRAMING underway. More typical action is rotational like today's. TF ATR is around 12- 16 points. I typically wait for this kind of pullback and see if market internals makes sense to take a trade. It typically takes me 40 minutes of HOLD TIME to get paid on a trade, so i am in no rush to initiate a trade becuase i know i will have to hold it for 40 minutes or more to get paid.
2) CL - see attached chart.
Last edited by mfbreakout; August 4th, 2014 at 11:24 PM.
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how did you decide on where to take the A pullback? i mean obv the lowest part of the pullback near the ORH is the best place to get it, but not knowing that it was going to get there or not is the main issue.
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dont believe anything you hear and only half of what you see
A few months ago I started reading and contributing to mfbreakout's closed thread in the Elite section. Mfbreakout helped me to understand ACD and MP methodology and how to determine the context of the market. Below are my trades today which are indicative of my consistent results now. I am very appreciative to mfbreakout and DCTrade69 for their advice, patience and willingness to answer my stupid questions while I learned.
My reason for posting this is to encourage others that you can become consistently profitable and gain confidence in your trading if you will put in the work necessary and learn from traders that are successful. I did it. Mfbreakout is a good person to follow and learn from.
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CL was a confirmed A up on an open drive day. The PB to ORH was a logical entry spot to take a chance that this was the PB expected on a confirmed A up day. I didn't take the trade, although I was watching it at the time. My partner was long at .80 a few bars earlier. I was involved in other things and didn't get involved on that trade. Context and price action combined with an understanding of ACD is the key.
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After A up confirmation- price pulling back to any area of OR ( 97.50 to 97.70) is the area to go long. I use 100 ticks stop loss ( disaster stop loss). price could have come to 97.30, 97.50 etc. I have no way of knowing where it will stop. I watch how price is behaving around an area and initiate a trade.
ONLY thing i am sure about is that after A up- it's rare to have C down, so i am taking longs off that premise. And if C down was confirmed with conviction, i would have shorted 97.30, 97.50 - it does not matter.
Key word being CONFIRMED WITH CONVICTION.
" ORH is the best place to get it, but not knowing that it was going to get there or not is the main issue."
There is no issue. If price does not get where you want- sit on hands.
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