[jonbig04]

1. Identify major S/R levels on 100k and 30k chart. Ideally I like to see reversals and/or successful flips of these levels before I note them.

This is the same thing I have been doing, with only moderate results. It's a simple thing, but levels taken from larger charts are so great to play intraday IMO. Call me a nerd but it's so cool to watch price stop on a dime at or very near a certain level that you've predetermined. Important as they are I have learned that they, alone, are not enough to meet my monthly goal of 20-30ES.

2. Identify major trend.

This is done in the simplest manner using HH/HL/LH/LL etc. I don't fade the major trend unless there is a reversal confirmation on the anchor chart.

3. Once trend is determined wait for the anchor chart to retrace to major level.

This is very similar to what I have been doing the past month or so, the only difference here is that I will not be fading the anchor's trend at all.

4. Move to entry chart and wait for confirmed reversal formation at that area.

This is the brand new stuff to me. This formation should be against the day's trend but with the anchors trend. Pattern identification will take some time to get used to, but price rarely reverses without giving clues, those are the clues I'm looking for. I need to see these patterns confirm before I can think about entering.

5. Once confirmed, wait for pull-back for entry. The pullback has to be to a level like ORH, ORL, GLOW,GHIGH or if the reversal is a W or M, can enter on the hump flip retest.

This part is not new, this is exactly what I was doing in the #AHG room and actually had very consistent monthly success with (though I think a lot of that is to do with volatility). Basically the idea is to wait for an intraday level to be taken and for price to pull back to it. This way you can get in at the end of the pullback with your stop protected. After all, that's the hard part of entering on PBs. Ideally I can enter on any pullback, but I'm not good enough to do that yet.

6. Entries will be based on chasing price or volume exhaustion if it happens. I want to see price get within 2 ticks of the level, then I will be ticks behind it and will follow it until filled. Stops will be dependent on the fill and how far I am from S/R, however they will be no more than 2 and no less than 0.75.

7. Targets are going to be nothing less than 9ES (and more like 10-13) and ideally will be dictated by the anchor chart (LLs, HHs).

If a reversal formation confirms on the anchor, I can then look to the entry chart for a pull back to enter. The only time I'm allowed to enter without a pullback is if there is a very large and perfect formation on the 30k chart and price "pops" with force at the confirmation, at which point I will simply enter at market. This doesn't happen very often, but I believe when it does it signals a potentially explosive move (hence the high volume pop).


Anchor=30k vol chart and 100k vol chart
Entry=10k vol chart
+5sec (w/volume)

Basically these new rules are combining my old strategy (level flip entries) with my new one (purely s/r) with the added confluence of anchor trend and reversal patterns. Just to give credit where it's due this is all 100% AHG. Anek told me to add patterns a long time ago and I didn't listen. I feel that the patterns and their confirmation will give me the higher accuracy that I need. I am very excited about implementing the new plan as I feel it addresses what you all have been saying about my trading and is more based in sound PA. I really hope/think this is what I need to get to the next level.

[jonbig04]

Here are some some charts of the last few days to see more of what I'm talking about.

[jonbig04]

Oops, don't know why i did that as PDF's.

[jonbig04]

Today had me pretty excited, I didn't net very much, but it was my first trade with the new rules. I could see the PA playing out and it was awesome.

[jonbig04]

I also need to develop overnight rules. There a good chance my target of 898 may be hit with the trend being down. Perhaps this should be my last "close at EOD" day.

[jonbig04]

No trades thursday. Saw DT confirm at a major area on the larger TF chart. I waited to see if there was going to be any action once we broke 917.75 (DT confirmation). Sure enough, there was and I immediately shorted. Its within my rules and I think it was a great trade. Too bad price dropped an addition 6ES before bouncing all the way off of GLOW to make a higher high and stop me out lol. Oh well, shit happens. I will gladly take this kind of trade all day!

Anyways only got 3 days of trading the new rules in and ended up +3.75. I'm not backtesting since its simply to pointless and discretionary. However if I had been trading with the rules the whole week, things probably would have been better, but there's no point in speculating. We'll just see what next week is like. I'm feeling pretty confident-price had to jump through hoops to stop me out today. Of course, it routinely does whatever it wants

I am using opening range high/low and globex high/low. To put it simply, they are indicators. If there is a major level overnight chances are it will become glow or ghigh, same with the opening range levels. They just quanitfy and plot s/r for me, which is why they often have huge impact on price. I mean look at today's high and low.

[MidKnight]

Originally Posted by jonbig04 »

However if I had been trading with the rules the whole week, things probably would have been better, but there's no point in speculating. We'll just see what next week is like.

Well said there. That is the truth with any discretionary method. It really is impossible to say with any grasp on reality how the week coulda, woulda, shoulda played out.

With regards to your SR levels, I would recommend keeping the current markets condition in mind. Still in a trading range, so prior day levels and recent range levels are salient. Things will change....Joy of the markets



With kind regards,
MK

[nkhoi]

7. Targets are going to be nothing less than 9ES (and more like 10-13) and ideally will be dictated by the anchor chart (LLs, HHs).

seems arbitrary target to me, check out ATR indicator then you can adjust to take 1/3 atr, 1/2 atr, full atr etc...