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...
There are two main bullish Price Action Patterns:
reversals and continuations
First and foremost - Read your charts
reversals and continuations
First and foremost - Read your charts
Look for combinations of signals and patterns across Time Frames
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...
But we got a rout !
Here we see divergences, trend line breaks and Slingshots showing on two different time frames...and a 2B Dragon pattern.
Here I was projecting/expecting a pull-back...
Here's an example of many T/A patterns and signals printing on
a daily chart of the Nasdaq 100 futures
Multiple
time frames
When
I see favorable signals firing simultaneously on multiple time
frames, I'm more likely to enter orders than when just a single time
frame chart shows signals... Although I have a longer term chart for
each market on one of my monitors that I'll change several times a
day (3, 5, 15 minutes etc.), I trade off of three main charts :
- 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)
Putting it all together 4/22/2014
Putting it all together 11/04/2014
Be flexible, adapt to what is happening on your charts...
Starting out in the futures markets
I strongly recommend paper trading first, before diving in using actual account equity. Your broker may provide you with a demo account with a live feed that will allow you to get familiar with the software and experiment with the methods I have suggested on this blog...Keep track of your demo trades for as long as is necessary - continue demo-trading until you are satisfied that you can consistently remove money from the market or markets you will be trading.
Once you decide to "go live" start with just a single contract per trade.
Don't be in a hurry increase your trade size by 'legging in to additional contracts' **...Continue to keep your statistics.
Log and analyze your results to verify that you are competent, capable and confident in your progress.
Only then consider going to two contracts per trade.
Be aware that most brokers charge commissions on a per contract basis.
That is, if your commission on a one-contract-round-turn trade is $6.00, you
will be charged $12.00 if you trade two contracts, $18.00 for three and so on.
Be aware that unlike equity commissions, the percentage costs of futures commissions
remains the same regardless of your trade size.
You may receive a commission discount based on the total number of trades
or on the total number of contracts traded per month - don't let
this be an incentive to trade larger or more frequently.
Futures commission costs play a big role in your profitability.
** ...leg in to additional contracts...
"HOW it's DONE"
-Increase initial size when there are multiple signals on multiple time frames...
- Add contracts (or shares) on Slingshots and MOF's that develop after your initial entry
(these are trend confirming signals i.e. trend continuation confirmations)
- Trade multiple markets concurrently - good signals often happen on different markets simultaneously...
and
- Use multiple orders for entries...some will fill, some may not...
...leg in to additional contracts...
Below is a 90 Tick YM e-mini futures chart.
...leg in to additional contracts...
Same P/A patterns and signals - 3xD, TLB, SLINGs
Examples of combining Price Action events with indicator patterns
Strive to always be aware of the interactions between P/A, patterns and signals.
Trade Focus - Concentration is required...
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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...
4/24/2014
Reliable, repeating patterns and signals on multiple time frames...
75 tick chart on the left, 45 tick on right...
7/17/2013
Using P/A and indicator signals to take money from the market
9/26/2013
Multiple time frames and signals
11/13/2013
3xD...MOF...Slingshot...New Trend
01/06/2014
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.
+cancel+++.png)
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...
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.
Some are duplicates that have been posted on other pages throughout this blog. Some are examples from several years ago - they show how well the methods I have presented in previous posts stand the test of time.
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...
4/24/2014
Reliable, repeating patterns and signals on multiple time frames...
75 tick chart on the left, 45 tick on right...
7/17/2013
Using P/A and indicator signals to take money from the market
Multiple time frames and signals
11/13/2013
3xD...MOF...Slingshot...New Trend
01/06/2014
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.
+cancel+++.png)
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...
Left hand lower monitor
Charts showing approximately the entire day (major market hours) and a 1/2 day
Bottom middle monitor
Sometimes showing a couple hours...and less :
Bottom right monitor
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.
Monitor set up for the above three pictures:
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Additional PUTTING IT ALL TOGETHER charts and comments are posted to this unpublished page:
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.
*************************************************
TRADE ANATOMY
This is my "how I do it" page - charts with explanations of my trading rationalizations and how I use the T/A described on this blog.
