Here's an update to my ES 15 min chart I posted last night.
As I pointed out last night, watch that S1 pivot, ES
basically found support on the S1 pivot last night and and of
course rallied hard this morning on the European news. Also
notice this morning on the gap high it stopped at the S3
pivot.
Again watch those pivots, I can't stress it enough. The ES
and SPX respond to them well, and especially overnight. In
fact Steve and I know traders who trade around these pivots and
make a lot of money by taking low risk trades close to the pivots
with tight stops. For example, they might buy as close to the
S1 or S2 pivot as they can, then place a tight stop below.
These guys like to use bracket orders, i.e. such as
buying close to the pivot, then placing a sell stop order 2 - 3
points lower, and then placing a sell limit profit order 10 - 15
points higher. This always gives them a 4 - 6:1 win/risk
ratio. In trading, anything 3:1 or higher is great i.e. you
risk 1 point to make 3. But the way this market moves, you
can take trades with 5:1, 6:1 or higher at times, which is nuts.
And of course you can the same for shorts, i.e. shorting R
pivots
Anyway another crazy day. Well at least I own quite a few
longs from the past couple of days from the watchlist: RYL, DVA,
PHM, LPL, SFG, PPC, VHI
Posted by philosoraptor on 30th of Nov 2011 at 11:07 am
Pivots-wise, we have breached the seldom seen R4 today on SPY (@
$123.92).
How unusual is this activity? I have just scanned back
through my SPY charts for the whole of 2010 and 2011 - in all that
time, we have only breached R4 on one other occasion; the first
trading day of this year (Jan 3)!
FWIW, price action for that day was a nice inverted 'U' shape
i.e. it rose steadily before selling off from around 11.40am into
the close.
Today's trading has started in a very similar fashion.......
thank you matt, great. I tried something like this several times
but did not really know how to handle properly.
bracket order means OCO (one cancels the other)?
hello elfi - yes a bracket order is what to use, because once
one of the orders is hit, the other is automatically canceled out,
which is very important it this crazy market where overnight
futures can be up 20 and down 20 all the same night!
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Here's an update to my
ES 15 min
Posted by matt on 30th of Nov 2011 at 09:45 am
Here's an update to my ES 15 min chart I posted last night. As I pointed out last night, watch that S1 pivot, ES basically found support on the S1 pivot last night and and of course rallied hard this morning on the European news. Also notice this morning on the gap high it stopped at the S3 pivot.
Again watch those pivots, I can't stress it enough. The ES and SPX respond to them well, and especially overnight. In fact Steve and I know traders who trade around these pivots and make a lot of money by taking low risk trades close to the pivots with tight stops. For example, they might buy as close to the S1 or S2 pivot as they can, then place a tight stop below. These guys like to use bracket orders, i.e. such as buying close to the pivot, then placing a sell stop order 2 - 3 points lower, and then placing a sell limit profit order 10 - 15 points higher. This always gives them a 4 - 6:1 win/risk ratio. In trading, anything 3:1 or higher is great i.e. you risk 1 point to make 3. But the way this market moves, you can take trades with 5:1, 6:1 or higher at times, which is nuts. And of course you can the same for shorts, i.e. shorting R pivots
Anyway another crazy day. Well at least I own quite a few longs from the past couple of days from the watchlist: RYL, DVA, PHM, LPL, SFG, PPC, VHI
Pivots-wise, we have breached the
Posted by philosoraptor on 30th of Nov 2011 at 11:07 am
Pivots-wise, we have breached the seldom seen R4 today on SPY (@ $123.92).
How unusual is this activity? I have just scanned back through my SPY charts for the whole of 2010 and 2011 - in all that time, we have only breached R4 on one other occasion; the first trading day of this year (Jan 3)!
FWIW, price action for that day was a nice inverted 'U' shape i.e. it rose steadily before selling off from around 11.40am into the close.
Today's trading has started in a very similar fashion.......
thank you matt, great. I
Posted by elfi on 30th of Nov 2011 at 10:19 am
thank you matt, great. I tried something like this several times but did not really know how to handle properly.
bracket order means OCO (one cancels the other)?
hello elfi - yes a
Posted by matt on 1st of Dec 2011 at 03:36 am
hello elfi - yes a bracket order is what to use, because once one of the orders is hit, the other is automatically canceled out, which is very important it this crazy market where overnight futures can be up 20 and down 20 all the same night!