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ckait

Whats Your Best Trade?

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Ive been looking in on TL since the begining, the one thread ive never seen on this or any other site is, what is your best and favorite most consistantly profietable trade. Some people say they wont share because then their trade won't work any more. I personally dont think that is the case, and would like to open the discussion with the offering up of my favorite trades so maybe some will share with great setups also.

Basically I run a 3 min Bar chart around a 30 min time frame. The trade is for picking up bottoms at VAL or below. This trade usually happens at least once a day and can be used on tops or bottoms but I mainly use it for bottoms.

After the IB and there is extension to the downside, usually consisting of at least one wide spread bar, you get a very narrow spread 30 min bar that i call the base bar. This bar usually has a three to five pt. spread but it only has to be narrow compared to the large spread of the down bar. Once a consecutive 30 min bar breaks the high of the base bar get long on a pullback to the high vol point or a tick above the high vol point of the base bar. Usually this is at least a 4 point trade but often it rotates all the way to VAH. Risk at entry 6 ticks on ES (thats the only thing Iuse this trade on).

I've never posted a chart here yet and will try and figure it out and post one or two in my next post just so I dont loose all this typing.

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Personally, I love candle patterns @ major support/resistance zones. My setups aren't as cut & dry as what you've presented here, but the idea is simple - look for bullish candles near my support zones and look for bearish candle patterns near my resistance zones.

 

here's a quick example:

attachment.php?attachmentid=11538&stc=1&d=1245388454

 

 

That's an example of using intraday s/r and candle patterns to find some possible points of entry.

5aa70eec06324_tlzb.png.eb54d1b0f021bf988033fb638f79a038.png

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My setups are similar to brownsfan... mainly reversal setups using S&R in conjunction with candle patterns and divergence. I find the RSI useful with the Kospi as there is nothing equivalent for a TICK or TICKQ.

 

However, I have a habit of always being alert of price action at the VWAP... it can act as significant entry as well as exit points. The only problem with candle patterns at S&R with divergence is on trend days you can get murdered. Hence, I also use the 60minute opening range as a guide. Its the only guide I use to determine chop from potential trend....I say potential because Im not too good with identifying trend days early. It usually takes until early afternoon to determine this.

 

Sample chart:

 

attachment.php?attachmentid=11539&stc=1&d=1245393315

chart1.thumb.jpg.088b7b958ec8dfce04f00c9dba025b44.jpg

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However, I have a habit of always being alert of price action at the VWAP... it can act as significant entry as well as exit points. The only problem with candle patterns at S&R with divergence is on trend days you can get murdered.

 

Very true James. The key IMO is determining your S/R. In my example, that was a quick one I did to help the thread get started. In my actual trading, I would be looking at a few different charts to see S/R - whether that be a daily, weekly, previous day(s) movements, etc.

 

Hence, I also use the 60minute opening range as a guide. Its the only guide I use to determine chop from potential trend....I say potential because Im not too good with identifying trend days early. It usually takes until early afternoon to determine this.

 

Would love to hear more about this James. Not sure this thread is the best spot, but feel free to join me in the candlestick corner as you got a nice looking candlestick hybrid thing going on here!

 

:)

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Yesterday's ES had two of my favorite ES "set ups"

 

1) Stall at resistance - sell short near HOD. I posted one of these on the ES in real time a week or so ago in the "Look at a stock trader's day" thread.

 

2) 1-2-3 reversal, with the breakdown point being the prior day's high. Sell stop was one tick below the the prior day's high.

 

 

 

Best Wishes,

 

Thales

5aa70eed327c2_6-19-2009ESStalland123Top1.thumb.jpg.91269d1b65f492ff92becbd0814d8c53.jpg

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Yesterday's ES had two of my favorite ES "set ups"

 

1) Stall at resistance - sell short near HOD. I posted one of these on the ES in real time a week or so ago in the "Look at a stock trader's day" thread.

 

2) 1-2-3 reversal, with the breakdown point being the prior day's high. Sell stop was one tick below the the prior day's high.

 

 

 

Best Wishes,

 

Thales

 

Saw the same setup, only I sold the breakdown pretty much where your second arrow is (as the formation confirms). Too bad it came back at eod

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