so the two examples I posted below were ideal trade setups that
were easy because they triggered and went up strongly. Not every
trade is going to do that, and you will having losing trades, you
stay disciplined, use money management, stops, take profits. so
while CAE and BYND were pretty monster trades, T has not been
AS I covered when trading setups find where your initial stop
should be if you are trading to swing trade them. You have to
give them logical wiggle room. Based on the daily chart, the
initial stop would have been around 38 the higher low. T popped
briefly over that trendline and so far has failed. Obviously
one could argue the doji candlestick at 39.03 was not a good
break and a reason to to NOT buy it at all. But let's go with the
example that you bought it anyway. For a swing based on the
daily your stop would have been at that 38 higher low area. If you
are only looking at the daily your stop would still be there in
place, it got close to triggering today but did not so you would
still be in the trade based on the daily chart. Maybe it
still works out and goes higher or it stops out.
The second image shows a 60 min, now one could have employed a
couple stops here and have been out at that 38.55 stop I show there
if you wanted something very tight and just barely over your entry
from the daily. This doesn't mean that T doesn't hold that daily
higher low and eventually go up and work out. Basically it's
still up in the air whether the stop on the 60 min will work better
than the daily as the daily has to be stopped out.
again trading is not an exact science and emotion is involved,
but this is another example and of one that hasn't had a big high
flying move like BYND, CAE etc.
anyway I share all this because these are methods I employ and
some of you have been asking what I look for in determining stops
etc
again what I have found after talking to people is that they are
either setting stops way too tightly where get stopped out on noise
only for the trade to have worked out had they used a tighter stop.
Or folks are not setting stops and taking profits and either
letting nice winning trades turn into losers or letting losing
trades turn into big losing trades.
Trading is not an exact science. And accept that it's a numbers
game, expect to not make money on every trade, expect to lose money
on trades. It's part of the numbers game, but if you are
disciplined about it, you will make money over time.
and looking over the trade setups we offer in the newsletters,
most give good trades, so the odds are in your favor there.
so guys, I simply employ that higher low stop method for my day
trading as well. It's fractal.
here's what I have done today on ES so far. I saw that coil on
the 5 min SPX this morning, then looked over at my tick charts and
saw an entry and a place for a stop, then I simply trailed my stop
up all morning until lunch, was able to raise my stop about 6 times
before getting stooped out around 11:50 CST.
I just re-entered a new ES long at the end there with an initial
stop at the higher low near 3280.25
again I'm showing this because that higher low stop method is
applicable basically to any time frame you are trading. So
even though my last stock examples have been for daily charts, it
works on fast 1 min and tick charts.
and last thing - trading is not an exact science and there's a
feel to it. you might exit a trade earlier than a stop based on
seeing divergence and other things.
here's an updated trade on that ES day trade As you know on the
last post I showed where I re-entered. So you can see how I got in,
stopped out for small profit. Then got back in now have 3 new
stops
Stop example on a less idea trade setup T
Posted by matt on 13th of Jan 2020 at 01:19 pm
T - Chart Link- daily chart
T - Chart Link- 60 min chart
so the two examples I posted below were ideal trade setups that were easy because they triggered and went up strongly. Not every trade is going to do that, and you will having losing trades, you stay disciplined, use money management, stops, take profits. so while CAE and BYND were pretty monster trades, T has not been
AS I covered when trading setups find where your initial stop should be if you are trading to swing trade them. You have to give them logical wiggle room. Based on the daily chart, the initial stop would have been around 38 the higher low. T popped briefly over that trendline and so far has failed. Obviously one could argue the doji candlestick at 39.03 was not a good break and a reason to to NOT buy it at all. But let's go with the example that you bought it anyway. For a swing based on the daily your stop would have been at that 38 higher low area. If you are only looking at the daily your stop would still be there in place, it got close to triggering today but did not so you would still be in the trade based on the daily chart. Maybe it still works out and goes higher or it stops out.
The second image shows a 60 min, now one could have employed a couple stops here and have been out at that 38.55 stop I show there if you wanted something very tight and just barely over your entry from the daily. This doesn't mean that T doesn't hold that daily higher low and eventually go up and work out. Basically it's still up in the air whether the stop on the 60 min will work better than the daily as the daily has to be stopped out.
again trading is not an exact science and emotion is involved, but this is another example and of one that hasn't had a big high flying move like BYND, CAE etc.
anyway I share all this because these are methods I employ and some of you have been asking what I look for in determining stops etc
again what I have found after talking to people is that they are either setting stops way too tightly where get stopped out on noise only for the trade to have worked out had they used a tighter stop. Or folks are not setting stops and taking profits and either letting nice winning trades turn into losers or letting losing trades turn into big losing trades.
Trading is not an exact science. And accept that it's a numbers game, expect to not make money on every trade, expect to lose money on trades. It's part of the numbers game, but if you are disciplined about it, you will make money over time.
and looking over the trade setups we offer in the newsletters, most give good trades, so the odds are in your favor there.
for tsla daily where would
Posted by morton7 on 13th of Jan 2020 at 01:31 pm
for tsla daily where would your stop be??
it would be the same
Posted by matt on 13th of Jan 2020 at 01:51 pm
it would be the same as I posted last week.
daily last higher low is still a ways off. If you are longer term guy and want to give ample room maybe there
if you are worried that it's getting quite extended now, a 60 min shows a higher low at 473.
again not rocket science guys. It's the same things I show on that BPT MA Deluxe daily and 2hr DVT higher low stuff, employ the same methods
so guys, I simply employ
Posted by matt on 13th of Jan 2020 at 02:11 pm
so guys, I simply employ that higher low stop method for my day trading as well. It's fractal.
here's what I have done today on ES so far. I saw that coil on the 5 min SPX this morning, then looked over at my tick charts and saw an entry and a place for a stop, then I simply trailed my stop up all morning until lunch, was able to raise my stop about 6 times before getting stooped out around 11:50 CST.
I just re-entered a new ES long at the end there with an initial stop at the higher low near 3280.25
again I'm showing this because that higher low stop method is applicable basically to any time frame you are trading. So even though my last stock examples have been for daily charts, it works on fast 1 min and tick charts.
and last thing - trading is not an exact science and there's a feel to it. you might exit a trade earlier than a stop based on seeing divergence and other things.
Very Cool, wish I could
Posted by Orangeman on 13th of Jan 2020 at 04:04 pm
Very Cool, wish I could trade tick charts on tradingview.... which reminds me -
@Matt - Any update re offering the BTP deluxe (red/green MA) indicator/study on Tradingview? Thanks.
here's an updated trade on
Posted by matt on 13th of Jan 2020 at 04:15 pm
here's an updated trade on that ES day trade As you know on the last post I showed where I re-entered. So you can see how I got in, stopped out for small profit. Then got back in now have 3 new stops
super, thanks.
Posted by morton7 on 13th of Jan 2020 at 02:08 pm
super, thanks.