Once you become adjusted to the idiosyncratic characteristics of all the stuff presented on this blog it becomes second nature - you see the patterns every time you glance a chart. Not that they always occur at the same time, but sometimes they do*... My discretionary trading methodologies combine all the things I've out-lined on this blog...trading is all about Price Action, Patterns and Signals...
reversals and continuations
First and foremost - Read your charts
Here we see divergences, trend line breaks and Slingshots showing on two different time frames...and a 2B Dragon pattern.
Use combinations of patterns, signals and multiple time frames
Here I was projecting/expecting a pull-back...
- very quick chart - low number of bars and low ticks per bar
- medium quick chart – showing about 2x the number of bars and more ticks per bar compared to chart 1)
- slower chart – about 2x the number of bars and increased ticks per bar than chart 2)
Strive to always be aware of the interactions between P/A, patterns and signals.
Trade Focus - Concentration is required...
The following show more Putting it all together examples.
6/6/13 "Putting it all together"
This 1080 tick chart shows Price Action for nearly the entire day. It is a relatively 'long term' chart compared with the 60/90/120 tick charts I trade off of...but still very useful.
A 2B bottom with 3xD for an entry - BZ Fibonacci for an initial target - Price Action within the wedge pattern to help visualize the strength of the new trend.
In the example above, I drew the rising wedge and Brach Zone retrace level expecting price to complete it's 5th leg within the shaded BZ area before reversing the up trend and to begin heading back down...
That price broke out of the wedge to the up side and surpassed the BZ area is just a reminder that the markets do not always follow the rules of technical analysis that we expect.
6/20/2013 Price Action, Trend Lines, Multiple Time Frames and Divergence
The charts below shows the importance of being aware of Price Action
(marked with LH-LLs to HH-HLs).
Drawing the Trend Lines is a simple way to illustrate this P/A...Divergences suggest ahead of time that the down trend may be ending, allowing early, counter trend position taking.
Staying aware of P/A after your initial entry will often show you Continuation events such as the MOF HL - for entering again or for adding to the original position if you held it...
Reliable, repeating patterns and signals on multiple time frames...
75 tick chart on the left, 45 tick on right...
Using P/A and indicator signals to take money from the market
Multiple time frames and signals
Miscellaneous Multiple time frames and signals -- using a BUY STOP order that's
placed above a down trend line allows your "guess" for catching a reversal to work
if indeed price reverses...it can also keep you out of a losing trade if price does not.
Use multiple 'Time Frames' to see the bigger picture
The "Tick Sizes' of the charts used will depend on the market activity on any particular day. In general I use 1560, 1080, 540, 240, 180, 120, 90 and 60 tick bar sizes...but I also use minute based charts too. The next three pictures are the chart set ups from one of the layouts I have used for trading the YM e-mini...
Charts showing approximately the entire day (major market hours) and a 1/2 day
Sometimes showing a couple hours...and less :
My main trading/signal chart - usually about a 1/2 hour of activity is visible.
It shares space with a Depth of Market order entry window.