[firewalker]

This thread is for discussing charts and explaining trade entries/exits. People are free to post any kind of chart, with or without annotations and engage in rational discussion. I am hoping enough people will open up and show their entries/exits on a chart and explain the reasoning behind them. Feel free to ask questions.

[firewalker]

I'll explain the reasoning behind me long trade posted live here http://www.traderslaboratory.com/for...841-post5.html

The entry was long at 12930 on the DOW (all prices are quoted from the futures). First of all, it's important to have context. Yesterday's context made me look for the long side, instead of short side.

First of all, going back a couple of days: +/- 12780 was an important level. On more than one occasion:

- on May 7 and May 8 that was the low of the day, price finding support there
- on May 9, it provided resistance and supply coming in there, effectively turning price around for that day
- on May 12, it's where the market opened
- yesterday, we had a selling climax and a re-test on that level

This is a chart of yesterday. I went long on the re-test, but that doesn't matter very much, because I don't hold my positions overnight.



As a result of that, I only stayed in the long trade till the end of the day and missed the run-up that happened on the open today. Better wishing you were in, than wishing you were out though.

More importantly, with a selling climax and strength in the background, I was looking to take a long position today, preferably at the best price possible, near 840-850. Unfortunately, they didn't exactly make it easy for me, price opened with a very strong push upwards.

Most people would then be looking for a short around 920-930 (resistance). I know it's exactly what I would have done in my early days. One reason is frustration of having missed the earlier entry, the other reason is wanting to take a trade. But I've learnt to control that - at least to some extent, still more learning to do!

So I waited for a retracement where I could enter. There's less potential, but at least it is trading in the right direction. My entry was at 12930 when resistance turned into support. See chart.



13030 is the next resistance level, but 970 is another hurdle before we can think of that (look at May 4, 5 and 6). I'm not getting too optimistic, especially since we are - as I type this - not exactly moving higher much and volume is thin. But then again, it's lunchtime...

[wasp]

A very simple rejection of the highs with weakness on the last leg up after 36 hours up movement.

Trend about to be broken and both pushed thrice at the highs.

[wasp]

Unfortunately I was asleep to catch the reversal optimum point on the S/R and uptrend but ces't la vie, 60 pips anyhow.

So albeit late, reversed on the bounce off S/R and trendline cross on both pairs. The highs from yesterday are in view and the line chart shows the congestion between the two levels. ATM, its 50/50 apart from the fact we are in an uptrend and the EJ has broken the highs already...

Another rejection and break of the uptrend will cancel all this and SAR again but thats trading!

[wasp]

Unfortunately I was too eager with my trendlines and watching EJ made me exit and SAR that GJ position only to take a loss and SAR again. Must pay more attention to what I draw!

[smbtnt]

Yesterday's play.

My exit was somewhat premature one can say, but this is a known issue.
Also outlines some levels I will be level looking at today.

[smbtnt]

Originally Posted by firewalker »

I'll explain the reasoning behind me long trade posted live here http://www.traderslaboratory.com/for...841-post5.html

The entry was long at 12930 on the DOW (all prices are quoted from the futures). First of all, it's important to have context. Yesterday's context made me look for the long side, instead of short side.

First of all, going back a couple of days: +/- 12780 was an important level. On more than one occasion:

- on May 7 and May 8 that was the low of the day, price finding support there
- on May 9, it provided resistance and supply coming in there, effectively turning price around for that day
- on May 12, it's where the market opened
- yesterday, we had a selling climax and a re-test on that level

This is a chart of yesterday. I went long on the re-test, but that doesn't matter very much, because I don't hold my positions overnight.



As a result of that, I only stayed in the long trade till the end of the day and missed the run-up that happened on the open today. Better wishing you were in, than wishing you were out though.

More importantly, with a selling climax and strength in the background, I was looking to take a long position today, preferably at the best price possible, near 840-850. Unfortunately, they didn't exactly make it easy for me, price opened with a very strong push upwards.

Most people would then be looking for a short around 920-930 (resistance). I know it's exactly what I would have done in my early days. One reason is frustration of having missed the earlier entry, the other reason is wanting to take a trade. But I've learnt to control that - at least to some extent, still more learning to do!

So I waited for a retracement where I could enter. There's less potential, but at least it is trading in the right direction. My entry was at 12930 when resistance turned into support. See chart.



13030 is the next resistance level, but 970 is another hurdle before we can think of that (look at May 4, 5 and 6). I'm not getting too optimistic, especially since we are - as I type this - not exactly moving higher much and volume is thin. But then again, it's lunchtime...

Hi FW,

Did you have 920-930 highlighted as Resistance premarket or did you gauge it intramarket after price stalled there momentarily?

[firewalker]

Originally Posted by smbtnt »

Hi FW,

Did you have 920-930 highlighted as Resistance premarket or did you gauge it intramarket after price stalled there momentarily?

The blue lines you see were drawn from left to right, meaning they were there before the day opened. So yes, I had it highlighted premarket.

Welcome smb