[Marko23]

Originally Posted by DugDug »

...By looking at exact numbers, by trying to make the chart fit what you think it should do exactly, then it can f... with the mind.
...

Then one makes the market fit one's mind; and we all know, it has to be the other way.

[DugDug]

Just as a small contribution for the FESX50 - DJ Euro stoxx 50
Thought process is pretty random/non systemised as I am largely discretionary (I have tried to automate things to no real good result), but still based on price action. This is also longer term trade for me, but it does show the thoughts, the turn of when I look to start taking longs rather than shorts as trades.

The intraday patterns are similar but at present selling at resistance zones as the tend is still down to flat.(To job around and buy back as the market seems to be flatter, hence running the trade further does not seem worth it), with the proviso that this bigger pattern is forming, and if it does what I think, then shorts stop and longs begin.

I believe
-- an ABC pattern could occur in the 5 min, and coincide with an ABC in the 1 hour chart.
--- ABC patterns are corrective, hence if forming within a bearish to flat pattern, once the ABC has formed any reversal is actually bullish.
--- the longer term daily pattern while bullish with bearish intermediate overtones as the pullback in equities has shown, has started to give a good support level, and hence a low risk stop level....being the recent daily lows.

Aim: buy a small amount on an ABC correction, stop at lows, pyramid in at a break of the B point, and possibly again at the A point on the 5 min chart. These would have a stop around the 2780 level, confirming that the pattern has failed for me. So rough risk around 40 points. Or if the ABC fails to complete, and the C forms a higher low near here, go harder at buying a break of the B point, and a break of the A point.

Take profit target....largely gut feel, but if it runs I just let it go. (the problem with this is that sometimes I get out way to early or late, but it works for me)

I hope this is of some help or generator of ideas to anyone (plus I hope the picture is clear enough) if not I will chop it up and paste three separate ones)

[Marko23]

Originally Posted by DugDug »

Just as a small contribution for the FESX50 - DJ Euro stoxx 50
...

I see DCs all over your charts.

A DC10 or DC12 can find some, but not all of the 1-2-3 setups:

[DugDug]

what is a DC10, DC12? Donchian channels?

If so... I use a selection of a few just as a guide to show highs and lows, eg daily donchian 25, DC 12 for the 5 minute, the hourly I use 3 (for no real reason) just as I want to get a feel of the moves, rather than any exact levels.
As I mentioned for me trying to focus on the exact levels just does not work..... I fall into a mind f....k.
So I just look at the bigger picture, narrow it down and then look to get on board a few trade ideas.
I did some testing with DC and turtle trading etc; overall I found if you use DC10, or 12 or 25 dd not make much of a difference, except to change the overall PL returns.... which was not really the point in trying to optimise returns..

In my case these are just visual guides, as to the actual highs and lows, and yet still allow me to focus on the close line which i find easier just to see clearly.

[jonbig04]

Ouch.


Click for full size - Uploaded with plasq's Skitch

[DugDug]

I have gone slightly early for a small trade, as I find it gives me focus for the plan.
I bought 1 at 85, and will pyramid if it starts going my way.

update: now comes the painful wait and see, as I went a touch early. ( a problem of late)
two points: never add to a looser, so even if it goes down,....avoid the temptation to add to the long until it turns.

cut at 2765, loosing 20 points.(probably near the lows....doh) as I did not expect it to be such a strong fall, and yesterdays low taken out. Which makes this an outside day.
( I really have no idea if that means anything other than I just dont need to be here.)

Will look to renter if rally shows any promise again, as my longer term idea remains the same.

[Marko23]

Originally Posted by DugDug »

what is a DC10, DC12? Donchian channels?

If so...

Yes, DC10 is a Donchian Channel with parameter 10.
It can help to distinguish different degrees.

EUR/USD found its target

[DugDug]

Re-entered +1 @ 2767 , stop at 2965, to go at it again on a little break up of the last few bars.
Really not sure why I am trying to pick the bottom, so have cut for even, at 2767.
time to stop, as I am an idiot today.

Let this be a lesson, of what not to do.

The good thing about the trade...
it was planned, idea was right as it works well in the past.
Key is to make sure once you get on board is to pyramid, with the trend (if it becomes one)
and let it run. loosing 20 points is nothing if you can run something for 100, and the second unit for say 80 points, the third unit 60 points. etc; Total 100+80+60=240.

Bad thing of the trade.
Went early, thinking I will pick the market perfectly.
Usually I wait and have patience.....but lately I have been way too eager.

Hats off to the guys who can post so many trades as they occur,