[brownsfan019]

Thales - can you explain more on the ES trade? You're talking my language now. lol

Was that mainly a gap type play where you used the gap level on a retest as the short area?

[thalestrader]

Originally Posted by thalestrader »

Stop is 930.75

Will watch what happens at 927, should price get there, to decide whether to take or run profit

I suspect we may get lower low before the market tips its hand as to whther it is trend down or not. With the gap open, TVGR (Trader Vic Gap Rule) is in effect.

Best Wishes,

Thales

[thalestrader]

Originally Posted by brownsfan019 »

Thales - can you explain more on the ES trade? You're talking my language now. lol

Was that mainly a gap type play where you used the gap level on a retest as the short area?

Hi Brownie,

Here is my chart with some notes. I'll go over the trade in more detail later if necessary. But basically I adhere to the TVGR, the Trader Vic Gap Rule: If the arket gaps open, and the gap is not quickly filled, then odds are +90% that it will not fill that day, and price will close in the direction of the gap.

Also, price stalled at Friday's low. A stall is a term used by Mike Reed at tradestalker.com. He has an eBook called Read the Greed where he discusses stalls.

The stall at resistance (multiple price bars with identical highs) coupled with the gap down gave an excellent R/R as a 1 tick loss with a minimum profit target of 26 ticks.

Like I said to you before, I do not trade th ES everyday, but I do watch it everyday, and I trade it when I get an excellent R/R situation.

Best Wishes,

Thales

[thalestrader]

Originally Posted by thalestrader »

I suspect we may get lower low before the market tips its hand as to whther it is trend down or not. With the gap open, TVGR (Trader Vic Gap Rule) is in effect.

Best Wishes,

Thales

And here goes that lower low ... I have a stop at 928.75, just in case we get a wild spike, but I will not likely allow myself to give that much back.

[thalestrader]

Originally Posted by thalestrader »

And here goes that lower low ... I have a stop at 928.75, just in case we get a wild spike, but I will not likely allow myself to give that much back.

Flat at 927.25 for 6.25, a 25:1 R/R

[sep34]

Hi thalestrader,

Good spot on the ES, Im not familiar with the trader Vic or person you mentioned regarding stalled at previous High, but thats not important, key is to understand price action in contexct regardless of how you go about it.

FWIW the retrace @ 11:19 EST of that swing high 10:41 EST made for an excelent short opportunity incase one wanted to wait for buying pressure to decline or missed the first trade that Thalestrader previously mentioned--Of course ones analysis had to put him in a place to have anticipated a possible trend continuation, other wise one would most likely have missed that trade in real time.


Best Regards

[thalestrader]

And for any other Vic Sperandeo students, out there, a 2B buy would occur with a 928.75 print, and you can see how price has stalled at 928.50. No doubt indicators the world over have a momentum divergence into the 925.50 low. But do you really need an indicator to tell you that price thrust into the first low with more momentum than the second low, given the gap down at the open?

By the way, that 2B buy just triggered, and it will be working against the TVGR. I am not taking this long, as TVGR leads me to believe that odds favor a close on the lows and not the highs of the day.

[thalestrader]

Originally Posted by pappo »

Good spot on the ES, Im not familiar with the trader Vic or person you mentioned regarding stalled at previous High, but thats not important, key is to understand price action in contexct regardless of how you go about it.

I agree with you. Trader Vic is Victor Sperandeo, and he has two very good books out (though in each book the real useful stuff is but a few chapters)

Mike Reed is a trader who offers educational material and a subscription service as well. I am not a subscriber, though I did purchase his eBook. I had subscribed previously, and he is as good a person to learn S/R trading from as any.

I just like to give credit where credit is due.

Best Wishes,

Thales