Real Time Price Action- Clue to Puzzle?

[zeon]

	Quote:	heretodaygone...
	For zeon http://www.prudenttrader.com/pt/

Thanks, but I think somebody already directed me towards this site. I've also come to realize that the biggest rallies appear to happen in bear markets! Although this is only interesting from a purely statistical point of view. I can't see how anybody would take a trade based on this information...

[erierambler]

	Quote:	zeon
	Actually, I'm quite disappointed. The above level 1333-1336 was apparently incorrect, as price found resistance at 1340-1342. The middle zone was closer, although 1322-1325 was where price consolidated pre-market and again later in the day before continuining on the way down. As 1300-1302... that would've been a nice target for shorts, if the trader would still be in by that time.

That's part of learning , you can't be right all the time, it's what you do with your experience and what you take away from it........
erie

[zeon]

	Quote:	erierambler
	Levels for tommorrow and chart attached: 1260-1270 1284-1290 1320-1333 erie

Those are pretty big levels, 6 to 10 points wide. How can you trade off them unless you use huge stops?

These are my levels for today, based on the price action of last two days. Obviously on a hourly chart these levels aren't so small...
1340-1342.50
1320-1322.50
1305-1307
1287.50-1290

[erierambler]

	Quote:	zeon
	Those are pretty big levels, 6 to 10 points wide. How can you trade off them unless you use huge stops? These are my levels for today, based on the price action of last two days. Obviously on a hourly chart these levels aren't so small... 1340-1342.50 1320-1322.50 1305-1307 1287.50-1290

Without getting into the way I trade, if you are watching price action at these levels you don't need very big stops at all. Let price action tell you if you are wrong, otherwise, when and what must price do to prove you wrong? It really becomes very simple. Also there may always be some sort of penetration, and one must be available. What I do right now as I'm getting into day-trades is I just take one trade if I can in a day and analyze the rest of the day. For example yesterday one trade (short) and then I thought price would stay up since I didn't see any real big selling in the morning ( I thought price would just coil ) . Then comes a trend day down. Since I got my trade I don't care what happens after , but I still have lots to learn , identifying opportunity. hope that helps...
erie

[zeon]

	Quote:	erierambler
	Without getting into the way I trade, if you are watching price action at these levels you don't need very big stops at all. Let price action tell you if you are wrong, otherwise, when and what must price do to prove you wrong? It really becomes very simple. Also there may always be some sort of penetration, and one must be available. What I do right now as I'm getting into day-trades is I just take one trade if I can in a day and analyze the rest of the day. For example yesterday one trade (short) and then I thought price would stay up since I didn't see any real big selling in the morning ( I thought price would just coil ) . Then comes a trend day down. Since I got my trade I don't care what happens after , but I still have lots to learn , identifying opportunity. hope that helps... erie

I depends what you call 'big stops'... your zones are 6-10 points wide, so suppose you see price entering the zone and then a spike on high volume pushes prices back below. This happens on the lower end of your zone. You take a short entry for several reasons (I don't know your exact setup but let's hypothesize). Next thing price jumps up 10 points and does the same on the upper boundary of your zone. Meanwhile you are 10 points offside. Price then breaks resistance by 2-3 points, only to come back right into your zone in the next 5 or 10 minutes. So either you have a superb ability of calling the entry right, or you need stops like 10-15 points. And that is huge to me.

If I may ask what are your targets then, if you use stops like that?

[erierambler]

	Quote:	erierambler
	Without getting into the way I trade, if you are watching price action at these levels you don't need very big stops at all. Let price action tell you if you are wrong, otherwise, when and what must price do to prove you wrong? It really becomes very simple. erie

And I should add that just because price is at one of these levels , doesn't mean there is a trade there, or one should take a trade there, there has to be a defined set-up that occurs..... enough of my chattiness today.
erie

[erierambler]

	Quote:	zeon
	I depends what you call 'big stops'... your zones are 6-10 points wide, so suppose you see price entering the zone and then a spike on high volume pushes prices back below. This happens on the lower end of your zone. You take a short entry for several reasons (I don't know your exact setup but let's hypothesize). Next thing price jumps up 10 points and does the same on the upper boundary of your zone. Meanwhile you are 10 points offside. Price then breaks resistance by 2-3 points, only to come back right into your zone in the next 5 or 10 minutes. So either you have a superb ability of calling the entry right, or you need stops like 10-15 points. And that is huge to me. If I may ask what are your targets then, if you use stops like that?

Your scenerio doesn't hold water for the set-up, that's the beauty of defining your play, look for high probability set-ups that occur with frequency and accuracy.( at s/r ). They will fail if they are not at s/r. To give an example of a target, one could use previous reaction highs/low, close, open, levels of s/r, trendline break, avg. range etc. Keep looking at charts and see what you see........ depends on where price is as well, congestion, trending.
erie

[heretodaygone...]

my view for today

[erierambler]

1332,1348,1358,1375 on attached chart.
erie

[heretodaygone...]

	Quote:	erierambler
	1332,1348,1358,1375 on attached chart. erie

I also have 1348-1358 as chop zone, with 1375 as a great target if price breaks through 1358. my only difference with your numbers is that I see support at 1337.

good trading