Monthly Archives: February 2015

Entry After An Extended Complex Pullback

 

I don't always time these so well, but this one worked out to be a really nice entry.

So let's check it out and discuss what I'm thinking when faced with a really long extended grinding "will it ever end" pullback.

First the higher timeframe to get some context…

Higher Timeframe 

And now the trading timeframe…

Trading Timeframe 

Let's zoom in a little to see the extended pullback…

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Be Water My Friend

 

Last Sunday I shared this great video on YTC Facebook and YTC Twitter:

It led to an email discussion with a YTC newsletter reader who accepts the value of motivation to a trader, but couldn't see the relevance of the Bruce Lee quote in the middle.

The quote commences at 1:37, if you wish to skip forward in the video to listen to it.

But I'll copy it here anyway…

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Where Would You Enter Short?

 

Question from YTC reader:

I traded ZIOP a few times today (I will attach the daily, 30 min and 3 min which are the charts I use below) I entered on the fourth 3 min candle right after the pullback and set my stop below the low of day. It was a good trade and I rode it to the resistance area on the 30 min chart.

My question is when does this become a short play, a safe short? Is it once it breaks below the open? Below the swing low? Or is there something that could have lead you into a short as soon as it didn't move over the highs and made a lower high?

I ended up taking a short after the first pullback once it went below the open price around 8.86, in the afternoon. It worked out well however I always have trouble getting into shorts early in plays that were longs and reversed.

Thanks, I hope I explained it well. Basically I just want to know where you would consider the trend changed and a short trade be the higher probability trade.

 

Attached Charts:

(The following are the daily, 30 min and 3 min charts as attached to the original email. I've added an overlay to the 3 min chart though, so that it shows the approximate location of the trades as described above – these were not on the original attachment so the exact entry location may vary slightly from what is shown.)

 

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NinjaTrader Tips – Displaying Price and NYSE Tick on One Chart

 

A recent article (http://yourtradingcoach.com/trading-process-and-strategy/reader-trade-review-es-test-of-resistance/) included the following image, which led to an email question asking "how do you display both price and the tick in the one chart, instead of in two separate windows?"

ES chart with attached NYSE Tick 

To display both price and NYSE Tick together in one window:

  1. Go to this page: http://yourtradingcoach.com/trading-business/ninjatrader-tips-and-techniques/
  2. Scroll down to the video titled "Adding Indicators to a Chart based upon Different Timeframes"
  3. You do not need the whole video… just the first 1:25 minutes.
  4. Note in this video how the presenter adds two data series to a single chart window – an ES 1 minute chart and an ES 5 minute chart.
  5. Follow the exact same procedure adding two data series, the first being the market you wish to display and the second being the NYSE Tick.  So in my previous article I displayed two data series – ES 03-15 (1-min) and ^TICK (1-min). 

You can follow this same procedure for combining any two different data series
into one window.

Happy trading,

Lance Beggs