[Gabe2004]

Since prior peaks act more often than not as S/R points I think that it makes more sense to trade counter the move that got us to the previous S/R level.
I noticed that a prior Peak or Trough will be revisited several times before it is crossed, which happens only once.

I find that placing a trade above the prior peak (for a breakout trade) or below the prior trough is more risky.

Any thoughts about this?

Gabe

PS Forrest - thanks for the color changes.

[thalestrader]

Still short ES from 1018, stop is in, so it is a waiting game.

Also short 6B from 1.6547 (sorry for the late post). Profit targets are at +62 ticks (1.6485) and +125 ticks (1.6422). Price is right now bouncing and testing the breakdown point, i.e. price has rallied back to the 1.6547 entry point).

[thalestrader]

Originally Posted by thalestrader »

Still short ES from 1018, stop is in, so it is a waiting game.

Also short 6B from 1.6547 (sorry for the late post). Profit targets are at +62 ticks (1.6485) and +125 ticks (1.6422). Price is right now bouncing and testing the breakdown point, i.e. price has rallied back to the 1.6547 entry point).

ES still stuck between S/R levels, so I am leaving it alone and waiting for the market to decide which way it wishes to go.

6B retraced back above short entry, and has now declined to a slightly lower low than that made soon after thismorning's entry, so the stop loss has been adjusted accordingly.

Best Wishes,

Thales

[thalestrader]

Originally Posted by Gabe2004 »

Since prior peaks act more often than not as S/R points I think that it makes more sense to trade counter the move that got us to the previous S/R level.
I noticed that a prior Peak or Trough will be revisited several times before it is crossed, which happens only once.

I find that placing a trade above the prior peak (for a breakout trade) or below the prior trough is more risky.

Any thoughts about this?

Gabe

PS Forrest - thanks for the color changes.

I do not usually sell against a resistance level without first waiting for price to show me a reaction against that level, then a rally to a lower high. Today (or rather, yesterday) I did not wait, and instead sold, and that is the trade that is giving me heat.

In the end, either way of trading S/R should work well over time so long as the trader is consistent in his or her application.

Best Wishes,

Thales

[forrestang]

Originally Posted by thalestrader »

I do not usually sell against a resistance level without first waiting for price to show me a reaction against that level, then a rally to a lower high. Today (or rather, yesterday) I did not wait, and instead sold, and that is the trade that is giving me heat.

In the end, either way of trading S/R should work well over time so long as the trader is consistent in his or her application.

Best Wishes,

Thales

Even though it was obviously a good entry, I've stared at it many times, and your 6B entry has me somewhat vexed. Dont feel the need to explain it if it isn't obvious, as it's hard to explain this type of BO type trading in the first place.

[forrestang]

Originally Posted by thalestrader »

The perils of trading retail forex, especially for relatively small profit targets - the spread is nt a market spread (no matter what your broker wishes to tell you), and therefore, you are subject to stop outs that defy typical trading logic. I also see that not only did price not trade at your stop level, but they clipped you for an extra bit on the fill.

I had my daughter add the 1-2 times the spread to her stop loss levels, and subtract 1-2 times the spread from her profit objectives, and that solved some of the problems inherent to trading with a bucket shop.

I called the broker about this eroneous fill, and they looked at the trade placed and said that the stop should not have been filled. Saying it was maybe a bad quote/tick on their servers.

How often have you seen this type of thing happen? It kinda creeps me out. I suppose i can see why you like futures so much better.

[thalestrader]

Originally Posted by forrestang »

I called the broker about this eroneous fill, and they looked at the trade placed and said that the stop should not have been filled. Saying it was maybe a bad quote/tick on their servers.

How often have you seen this type of thing happen? It kinda creeps me out. I suppose i can see why you like futures so much better.

Well, then question is now that it was filled and you booked your loss, how does the broker proceed? Will the broker correct the trade? Do you want it corrected? Or would you have to file a complaint with the NFA to get action?

I do not know how often these things happen at MB, though if MB is really an STP platform, then it should not happen at all. From the look of the spreads at MB, I would not want to be paying a commission on top of that spread.

Like I said, my daughter traded at fxcm. If her stop loss, based on the chart, was 133.15, then she would place a stop loss at 133.162-133.174 (typical EURJPY spread at fxcm was 1.2 ticks). If her take profit, based upon her reading of the chart, should be 132.50, then her limit order would have been 132.512-132.524 And for profit targets, she would usually +/- 5 ticks from S/R and then add the spread to make sure she'd get a fill if price got close to her target.

[thalestrader]

Originally Posted by thalestrader »

ES still stuck between S/R levels, so I am leaving it alone and waiting for the market to decide which way it wishes to go.

6B retraced back above short entry, and has now declined to a slightly lower low than that made soon after thismorning's entry, so the stop loss has been adjusted accordingly.

Best Wishes,

Thales

Not much has changed other than another lower low so another adjustment to the stop on the 6B trade.

Best Wishes,

Thales