[forrestang]

Originally Posted by thalestrader »

Hi Forrest,
I look for the second test when trading the ES, but it is the same type of entry as most of the trades I post, wouldn't you say?

Most yes. I could be wrong, but it seems like some trades don't meet the 'strict' criteria of the 2tests (unless you are looking on a smaller time frame than the one posted), but I figured that was just because you can tell when a breakout is going to be particularly useful since you've been doing it for a while?

Like THIS one. Now I wouldn't have shorted at this point.

Or HERE is another one I asked you about before, because I could see why you would enter before you explained it. And while they were indeed breakouts, I would say they don't fit the necessary criteria to give a newb like me the confidence to jump in.

Sometimes I do see what seems to be a good area to trade the BreakOut w/o meeting my criteria, and more times than not they work out, but I also get faked out quite a bit. Eventually I think it will become more obvious.

Does what I'm saying make sense?

[brownsfan019]

Originally Posted by thalestrader »

1) Trade 1 stop loss was 1062. I mistyped it here as 1062.25. The low prior to the entry was 1062.25, so stop loss was placed 1 tick below. After trigger, price pulled back to 1062.25 and then hit 1070 target. If some had set a stop loss based upon what I typed rather than the chart, then they would have been stopped out. My stop was 1062.

2) Trade 2 was entered on an stop at 1062. I believe I did type the correct stop loss in that post, which was 1065.25 for that trade.

3) I did not think of that as a short break there in real time, Brownie. And looking at it now, I do not see it as anything special either. Now, if you are going to ask me why I don't se anything there, I can only answer that I do not see that as a favorable place either to go short or to add to a short position.

Best Wishes,

Thales

RE #3: Would you agree that there was a '2 test', meaning price did test the exact same price level twice after a push off in between? If so, would that qualify as a book '2 test' or not? Just trying to see if I am missing something there.

Originally Posted by thalestrader »

This one ended in a loss of -.50/contract.

Total for the day, in hindsight, wouldashouldacoulda been +8.50 points, as the second half of the first trade should have been a +1.50 stop. I kept a break even stop, so the +1.5 on the chart is theoretical, not actual. The second trade stopped its decline before my 55.25 target, and was stopped out for +1.75 on the whole position. The third trade handed me my only loss today, -.50 on the whole position. Total was a mere +7 points after a whole lot of trading (for me). I will probably not even look at the ES tomorrow.

Is that b/c this threads recent focus on the ES may have taken you away from other, easier trades? Or b/c it's Friday? Or...

[brownsfan019]

Originally Posted by forrestang »

I took the first and the 2nd trade today myself in the ES.

The trade you asked about as to why not a trade, IMO it doesn't look right. I've been doing the 2Test type entry Thales described for a while now.

On the one you listed, it seems like there wasn't 2 tests. When I look for the 2tests, I want to see an actual retracement off of the high at least some degree before the actual B.O.

A lot of Thales' trades don't fit that criteria and are other types of entries.

ALL my trades (and ALL the ones I've posted here) have an entry with the 2 Tests occuring prior to my entry. This means I watch a WHOLE lot of trades go on w/o me(a lot of which look good otherwise), but I figured I'd focus on only one setup for now.

To me, that 3rd one did resemble a 2 test. Price was tested at the identical level 2 times, in between the 2 tests there was a push up.

[brownsfan019]

Originally Posted by forrestang »

I didn't catch this one, a lot of new tv shows were on tonight, damn Fringe.

But the G/U seems to offer something every night.

First picture is the micro look, second is the macro in what seems to be obvious levels of support.

Other possible 2 tests?

[forrestang]

Originally Posted by brownsfan019 »

Other possible 2 tests?

I was responding to your last post, but I think I can convey my thouhgts based on your recent post.

And this is just the way I see it, I'm still getting a handle on things myself. If anyone has better ideas please post.

Brown,
When I look for the testing to occur, I am wanting to see actual swings, that encompass several bars. Not a 5min bar occuring at 8:30 for example(depending on what bar interval you're using), and the next bar occuring at 8:35 that matches the 8:30 bar. I want to give it time to develop, so you've got plenty of time to watch the test develop.

What I'm saying(for a long) is that i want to see a swing high, followed by a down retracement, followed by another swing high, followed by a retracement, THEN get ready to enter the Breakout. I have attached a chart showing this and some commentary, the chart of mine you posted with a wider tf.

So someone asked me yesterday with the GU short i took why I didn't get long. To me, I was worried about the possible resistance overhead. Which wasn't super solid, but to me it pushed me away. Also what I said earlier to this quote below was that if you look to the left, you'll likely see some resistance overhead, or support below where your entry might be that would make you aprehensive about taking the trade.

Originally Posted by throughthemud »

this is definitely a good technique thales. I have such a hard time with being patient for this kind of thing though. looking at my chart of gbp/usd i see 4 tests in a row though i expect it to break out soon

I have attached a chart showign this and some commentary.

[thalestrader]

Originally Posted by thalestrader »

I look for the second test when trading the ES

Originally Posted by forrestang »

Most yes. I could be wrong, but it seems like some trades don't meet the 'strict' criteria of the 2tests

Hi Forrest,

I use the double test on the ES.

The examples you showed were of Yen futures and Pound futures. I do not need a double test to trade a breakout on a currency future.

Best Wishes,

Thales

[thalestrader]

Originally Posted by brownsfan019 »

To me, that 3rd one did resemble a 2 test. Price was tested at the identical level 2 times, in between the 2 tests there was a push up.

Hi Brownie,

Well, yes, strictly speaking price did trade at exactly the same low.

But I approach it the way Forrest described: I would look for price to stop its decline, and then rally sufficiently to create an identifiable counter swing, followed by a swing back down to test the prior swing low. Now, I'd trade the break of that low on the very next bar. I would not look for yest another swing high before trading the break.

What you are pointing to is a double test low that occurred within one down swing, not a double test of two separate swing lows separated by at least one intervening swing high.

What you describe as a "push up" did not encompass a range of price movement that would qualify as a swing (it is, after all, an "inside bar," and as such it cannot be a separet swing from the prior bar, the activity of which completely encompasses the activity of the "push up" bar. Now, had there been a lateral consolidation for several bars, even if all of them were inside that first bar that printed the low, then, I would likely have traded a break. But a single inside bar does not, for the purposes of the way I approach this, sufficient to be a range unto itself. And, the whole of the particular pattern you point to is really three bars, of which the range of the second and third is each inside the initial bar of the pattern.

Best Wishes,

Thales

[Gabe2004]

Originally Posted by thalestrader »

Hi Forrest,

I use the double test on the ES.

The examples you showed were of Yen futures and Pound futures. I do not need a double test to trade a breakout on a currency future.

Best Wishes,

Thales

Good morninh

Why are currency pairsd different as far as the x2 test is concerned?

Thank you

Gabe

PS. Thank you for your patience and detailed explanations.