Here's today's TF, this snapshot is before the market opens. All together I got 24 signals for the day, which is typical. As this is mainly a divergence method, you get more signals when the market is ranging then when the market starts trending. I start trading at 8:00am EST and many times I'm done trading before the market opens, I am almost always done by 11am. On a 3 range chart, enter with stop/limit at the close of a bar, target is 6 ticks, stop behind the entry bar (4 ticks), stop gets moved to 3 ticks at 1 tick profit, and to break even+1 at 5 ticks profit. A 6 tick target/3 tick stop gives me a scalping system with a fixed 2:1 reward/risk ratio. I have not included my indicators on the chart to protect the innocent , but they are the good old RSI, and Stochastics.
The following 6 users say Thank You to monpere for this post:
I am new here and I am interested in your entry technique. If you wouldn't mind explaining, it would be helpful.
If you have a three range bar, and you enter at the close of the bar, won't there be a lot of times that you will not get filled? I have noticed with range bars that once the bar closes, if you then place your entry at the close of that bar, often times price just keeps going. I am unclear as to how you do this. Any clarification would be great. Thanks.
The following user says Thank You to JS12 for this post:
Since I am working with such a small time frame, there are generally enough entries in normal trending markets, and ranging markets, but not in very strong impulsing moves. There is an indicator on this board or on NinjaTrader board that will tell you the prices a range bar will end, up and down. I just put my stop limit order at one of those prices depending if I am going long or short.
The following 2 users say Thank You to monpere for this post:
Thanks for the help. I have tried divergence trading in the past, but it has never worked for me with any indicator. If you keep on taking trades against the trend, and the trend keeps going, don't you get run over?
I have heard that most of the pro traders out there trade with the trend. Going against the trend is dangerous I always thought.
Would you mind posting some more charts? I primarily trade the 6E, so charts of that would be most helpful.
I guess that discussion belongs more in another thread, but in that small of a time frame you get a subset of normal divergence signals that are with the trend. Some divergence traders also trade 'Hidden Divergence or Reverse Divergence' which also go with the trend (see thread https://futures.io/ninjatrader-programming/3640-post-your-favorite-divergence-ind-here-3.html) but I do not trade those . You can find some info on that if you search for it. I also have one with the trend setup that I trade that is not divergence.
Last edited by monpere; January 9th, 2011 at 07:45 AM.