[ZenMachine]

Originally Posted by thalestrader »

I would advise anyone who follows this thread to use my trading of the ES today as a lesson on how not to trade.

Hi Thales,

I have not been able to contribute to this thread lately, but have been following this. Your examples and insights are truly inspiring to me.

It's rare to see someone as competent as you showing your mistakes and explain them in detail. There is so much to learn for a beginning trader like me from such examples.
Most educating is the attitude you have with such failed trades. You're not upset, and have such willingness to review your mistakes in order to improve.

As for the reason you made such uncharacteristic mistakes, perhaps is it because you took somewhat similar pattern(an early impulsive downward move reversed up after brief congestion) yesterday to profit?
I've made the mistake myself many times, insisting to repeat successful past patterns when they're not really there...

Anyway, thanks again. I hope you get some rest.

[thalestrader]

Originally Posted by ZenMachine »

As for the reason you made such uncharacteristic mistakes, perhaps is it because you took somewhat similar pattern(an early impulsive downward move reversed up after brief congestion) yesterday to profit?

I've made the mistake myself many times, insisting to repeat successful past patterns when they're not really there...

Anyway, thanks again. I hope you get some rest.

Hi Zen,

The long side has outperformed the short side for most of the last six months or so, and you are correct in that a long trade the prior day after a rapid decline resulted in a nice profit. However, the prior day did not gap open lower than the prior day's close. I do not have the chart in front of me, but if I am not mistaken, the market may have actually gapped open higher that day. The patterns were not the same, either in the maner the market opened or where I was attempting to buy.

Bottom line is I just was not thinking. I somehow did not acknowledge the gap lower with the same significance I know it to have. I know that there are others here at TL who disregard gaps, or use the existence of 24 hour data to argue that gaps simply do not exist. But gaps do exist, and gaps do have significance. Yesterday I just was not thinking clearly.

Thank you for your post, and please contribute your charts when you are able.

Best Wishes,

Thales

[Gabe2004]

Originally Posted by forrestang »

I am usually the last to catch on, what do you mean?

Hello Forrest

What I mean is that it seems that either GJ or GU would break out decisively or one of the other 2 pairs that you desplayed (EJ or EU) will break out decisively. So maybe it makes sense to trade 2 instruments of the same kind and once one makes its move, close the other one and ride the rocket that left earth.
you may cut you position in half by this but if you took the wrong instrument you would make nothing.
One can always add to a winning position later with the cash freed by selling the non performing instrument.

Take care

Gabe

[subterfuge]

Bought into the gap today looking for the gap to try to close. Very pleased with this one. Gonna likely stop for the day and read rather than do my usualy trick of giving winnings back on rubbish trades!

in at 1019 out 1023.25

[Gabe2004]

thought this might be helpful.
Trader Vic 123 Reversal Pattern Setup

Gabe

[Gabe2004]

2 trades tonight.
1st target in both was a simple numeric target.
The 2nd and 3rd targets were based on SR areas that seemed like logical targets at the time.
EJ 10, 30, 58 pips.
GJ 14, 40, 108 pips.
Average 43 pips per unit.
Gabe

[thalestrader]

Hi Folks,

Here are looks at my daughter's favorite currency paor, the EURJPY.

Best Wishes,

Thales

[Gabe2004]

Some charts with noted levels

Gabe