Date:May 10 2011
I am a price action trader. I do use indicators( minimally) basically a 2/10 macd to look for price and momentum divergences.
I am struggling with how to present the journal. I had delayed making the journal for that reason. However, I intend to start the journal and make incremental improvements in the presentations.
What I rely on :
1. ES 5 Min chart
2. ES 10000V chart
3. 3/10 macd.
I also look at FAS,$BANK,NQ, DIA from time to time.
I rely on trendlines,channels,SR lines.
Date:09/21/2014
After some experience following the ES and blowing couple of accounts, Here is what I do:
1. My Screens:
60 mins, 30 mins, 15 mins ---- 24 hours ....I rarely look at 60 mins and 30 mins...It is usually covered by DOM but glance every now and then
Use the 60 mins and 30 mins charts to draw long term trend lines.
Use 15 min chart to mark YH/L,PD H/L, gaps etc.
5 mins, 15 mins and 2 mins ---- day time session only. Use 15 min chart to draw long term trend lines.
7868 V, 4230 V...these are 24 hours and form my main trading screens.
I also have daily and weekly charts minimized and may be pulled up when needed.
2. What I look for:
1. Gaps overnight and day level.
Price typically gaps to supply or demand. So if correctly identified this is most important S/R line and of long term significance.
Mark in Red.
2. Draw trend lines and watch for price break or bounce and with couple of setups enter the market accordingly.
Mack ( from PAT trading) has been very influential in my understanding of trendlines/channels.
3. Mark swing highs and lows .
3. My setups:
Observe how price behaves at S/R level and take a trade. I am struggling between aggressive or conservative entry. My natural preference is aggressive entry but have trained myself to wait for confirmation. I am not sure which is better but this is Work in Progress.
Pinup bar,
2 doji
2 entry or 2 entry failure ( 2ef preffrerrd on any timeframe where price rejection is clear).
price stall
trap ( may be hikkake pattern)
all at swing high/low level. boundaries of channel at EMA etc.
If price is in a trend... a 2 or 3 legged move to EMA (20 ema) on any chart above ( very sujective) unlike S/R
4. What my goal is :
Ideally trade with the institutions. Look for key areas like Prev days H/L , gaps etc. Look at higher timeframe S/R level and if present on current timeframe have a strategy to trade there.
If ideal entry is not there, look for traps and join the side of stronger side.
If trap is not clear trade at boundary of S/R, MA, Channel line.
5. My weakness:
Entry whether conservative or aggressive is not clear yet.
Taking trade before Market structure gives clear indication of trend or range oe clear channel is available).
For my style of trading need to make sure there is clear room for price to move
(ie. S/R level is far away else need to quickly move to scalping mode)
Focus goes way down after 2-3 trades( irrespective of loss or win)
6. Misc:
I trade with 2 contracts and am still in Sim :-(
1 contract out typically at 4T.
2nd contract out typically at 12T ( ideally). Sometimes in strong trend will try to ride longer but capture atleast 12T.
7. Who have influenced by trading:
Al Brooks ( whatever little I understand from his books)
Mack ( Price action trading)
Linda Raschke( lots of webinars on youtube)
Lance Beggs , Mike Reed, Toni Hansen
Guideline I follow when I learn from the above or any teachers:
If you look at say top tennis players, they have different styles. Try to copy all of them and you will go crazy. However all of them have common feature. say look at back hand. they try to use stronger muscles ( trunk , legs) to generate power, hit ball from high to low, generate power from the center of the body etc. Try to get the basics( what …