I must admit our strategies are completely juxtaposed...
My deal is to sell resistance and buy support.
The trading range here is 2131-2146, defined by the last day of volume in the SPX...
Instead of buying a break out which is effectively your system entry...
I look to short resistance with very tight stops...
Minimize risk and maximize profits.
For a run back to support
It's a 15 point trading range, but if you get the moves right, there's plenty of points for a day trader to carve out...
Good to have a trading discussion here, mind if I give my 2cents, I spend WAY too much time over years examining and trying all trading approaches.
Yes, I agree somewhat, but this assumes you can predict 'its a range'.
He is using a pure price system, so there is no 'we are in a range' ...because all ranges end and then trend, his system is tuned to
take small losses in range, then large profit when trend comes. ..you can't snapshot it in the range and say its different approach, you
have to see it over longer period of both ranges + trend.
* the flipside in trading ranges, you miss the trend, as u assume resistance or support holds. Ok u now u have system to tell
u when range fails to trend .. then u have great system ..usually u just get it wrong and miss lots of range trades or trend trades.
I'm day trader, even for that with ranges its been tricky THIS week.
I've shown the challenge for day -trading in this chart:
Red arrows show SHORT trade setup at resistance 2146.
Note. As day-trade, must be closed end of day, and take after open.
* Now on ES ...not limited to cash day session, .I think it would have been ALOT easier ..as i said above.
http://screencast.com/t/uNMKCohpA97D
For example this week - monday droped to 2125....6 pt under ur support... would stop out a 5pt type stop.
then tue-today ... we've had drops off resistance 2146 area ( with 2-3pts ..with stop range) ...but never dropped to 2131, lowest is today 2134.
so now problem moves to 'where do I take a profit' a GOOD problem compared to losses I agree! but its been difficult because
-> if you short resistance..and hold until support to exit since Tue ... you got nothing! never hit support 2131.
OK - so u are experienced, and realize its a pesky scalper market - just take 5pts every time you get them ..... as I said, that's only
good trade this week on SPX cash we are discussing.
As always with TRADING versus setup - its all about where is entry, where is stop , where is exit ..you can call it right, and still get nada for ur troubles
except commission costs for many lame trades.
I certainly got no good setups this week - that is very rare ....except for OPEX when it occurs very often
Hence I am here chatting ..rather than trading. :-)
best,
Mark
Edited by Entropy2.0, 20 October 2016 - 02:10 PM.
Question everything, especially what you believe you know. The foundation of science is questioning the data, not trusting the data.
I only trust fully falsified, non vested interest 'data', which is extremely rare in our world of paid framing narratives 'psy ops'.
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