firewalker

might be me having an off day, but DOW long 12520... stop 510.

what's the potential of that trade in your opinion? looks to me like price is just taking a pause after that sharp run-up, but I can't see it reversing just yet

doesn't look like much selling tho...

bad luck... -15.

The way I see it the odds that it will go up on news or down on news are 50/50... So, over the long run, if I'm in a position and stay in the the trade, I will be stopped out sometimes, but I will have trades that continue in the favourable direction as well. I prefer to move my stop to breakeven before the news though (like on last Friday I think that was the case and I was in before the news, actually very similar like today).

DOW short 12520, stop 12535.

Did you take that trade then? back to 1380 by the looks of it...

out -2 ...

NQ short 1968, stop 1970.

Welcome aboard, I'm definitely not familiar with all of the jargon, but do know some of the concepts. Pre-market 520 showed another nice short, right now I'm looking to see what happens around 470. We also have New Home Sales 30 minutes after the open, so could be some whipsaw going on...

I think I said something like that 5 days ago

Bit late, but check out this post: http://www.traderslaboratory.com/forums/37660-post27.html

Personally, 5 minutes before I would hesitate. But on Friday I entered about 15-20 minutes before the news because there was a solid signal and I held on for couple of hours.

I've found that S/R works just as well overnight, but because of the thin volume, you can easily get nasty spikes on news. In any case, I am now banging my head against the wall for not taking the 520 short :crap: As I'm awake anyway I think I might focus some more on premarket again. Last time around I stopped doing so, because it kept me glued on the screen for too long. Sometimes it can just go sideways for hours and hours...

Have you thought about waiting to exit the rest of your position until you get another entry signal (in the opposite direction)?

I think trading premarket some moves tend to start a bit slower. But it was a nice move indeed... although I believe there's much more weakness to come this week. Do you often take premarket positions? I prefer to trade when there's more volume, but can't deny that there are sweet moves overnight from time to time. Take this short on the YM from +/- 520 for example...

Wasp is one, for example

I posted the above three days ago. And still, 520 works as magic!

Nice to see you contributing here. What was your reasoning to scratch the rest?

Actually, that's the point I'm making. Perhaps I didn't make myself clear. I didn't say the news won't affect the market. Sometimes it will, other times it won't. But it's not the news itself, it's the action of the market that really matters. Why would you be blown out of the water because of the news? If price moves against you, you have your (be it fixed be it mental) stop, right? That's exactly who I use it. I write down the time periods where potentially market moving news is released. If you don't, you might wonder why price is sitting there for one hour (apparently in anticipation of something). But there are many traders who completely shut their eyes to all these things and trade very profitable as well.

If by indicator you mean something that shows which you could easily see just by looking at the price bars, then yes I still don't see how it adds anything useful to it. There is one occasion where it might be useful, but as liquidity is not an issue in FX, it's not really applicable: Suppose you see price jumping from 160 to 165 with very low tick volume, then it has to be slippage or something must be wrong...

Yes, but the exact cause that volume comes off is because the move dies down... In fact, if you would make the scale big enough on the volume alone, you could draw a price chart from it which would match it pretty closely. Only thing you need to do, is colour the volume bars so you know which ones are up and down. Try it, you'll see

Afaik, there are three different types of volume: (1) contract volume = the number of contracts traded during any given time interval, (2) trade volume = the number of trades (regardless of their size) during any given time interval (3) tick volume = the number of changes in price, regardless of contract/trade volume that occur during any given time interval.

If I understand correctly, volume on FX charts is 'tick volume'. Tick volume is defined as the number of price changes... which means on bigger moves, expanding wider ranges, the volume will be higher because the absolute price change is bigger. So in your charts the high volume reflects nothing more than the fact price moved a lot. For that reason, there is -imho- not much else you can do with it (in FX).

That's all I see too.