Soultrader

Chat log from Nov. 7, 2006. Forex Chat Seminar by Feb2865 (Raul). Many Thanks. [feb2865] 11:57 am: the big boys in forex are Deutsche Bank, UBS and Citigroup [feb2865] 11:58 am: in that order [feb2865] 11:58 am: write this down please because this is what you're trading against [feb2865] 11:58 am: or in favor [Trading Room]: JayRemy has left at 11:58 am [feb2865] 11:59 am: after that you'll have corporations, hedge fund managers, some ocasional central bank intervention etc [feb2865] 12:00 pm: speculators are at the end of the food chain [Trading Room]: guavaman has entered at 12:00 pm [guavaman] 12:01 pm: looks like were range bound for the rest of the day\ [feb2865] 12:01 pm: I am not goint to get into outrigth contracts, swaps etc we could talk about it later. Just get notice that you're in the most vulnerable part of the whole forex system [feb2865] 12:02 pm: but don't worry [soultrader] 12:02 pm: i see [feb2865] 12:02 pm: this is the way the "big boys" paly this market [feb2865] 12:02 pm: play* [Trading Room]: guavaman has left at 12:03 pm [feb2865] 12:03 pm: by the way I am not showing you the holy grail or anything like that. But this strategy is very effective and has been used for years and years in secrecy [feb2865] 12:05 pm: you're going to draw two lines ....support and resistance [feb2865] 12:05 pm: coming from past session - [Trading Room]: guavaman has entered at 12:05 pm [feb2865] 12:05 pm: look for high and low and draw your lines [feb2865] 12:06 pm: whenever market breaks these lines........that's your entry [MrPaul] 12:06 pm: feb when you say past session..you mean the market open/close of the market where the currency is traded? [nasdaq5048] 12:06 pm: What do u use for intraday H/L? 24hr or just the market hour of that country? [soultrader] 12:06 pm: what time frame is this? [feb2865] 12:06 pm: the lines has to be plotted on the daily chart [feb2865] 12:07 pm: ok market close [soultrader] 12:07 pm: ok [feb2865] 12:07 pm: form 6:00PM [feb2865] 12:07 pm: until 5:00PM next day [feb2865] 12:07 pm: that's your trading session...I am not finished yet [torero] 12:07 pm: high /low of yesterday correct? [feb2865] 12:08 pm: exactly torero [soultrader] 12:10 pm: test [feb2865] 12:10 pm: sorry I had to turn my phone off [feb2865] 12:12 pm: ok during the whole trading is divided in two segments - London Market - 2:00 AM 12 PM EST and New York Market 8:AM - 12:PM [soultrader] 12:13 pm: why 10 hours for london and only 4 for ny? [feb2865] 12:13 pm: London market is the big daddy of forex followed by New York Market - there's some other sesions like the Asian Market but we will talk about it later Welcome! You have entered [Trading Room] at 12:20 pm [Trading Room]: Soultrader has entered at 12:20 pm [feb2865] 12:20 pm: sorry I got kicked out [torero] 12:20 pm: got logged out [soultrader] 12:20 pm: sorry.. got kicked out [namstrader] 12:20 pm: me too [torero] 12:20 pm: everyone was i reckon [soultrader] 12:20 pm: i think my server went down [feb2865] 12:20 pm: yeah me too [Trading Room]: nasdaq5048 has entered at 12:20 pm [torero] 12:21 pm: lo.l [soultrader] 12:21 pm: feb was this your last comment? London market is the big daddy of forex followed by New York Market - there's some other sesions like the Asian Market but we will talk about it later [Trading Room]: guavaman has entered at 12:21 pm [soultrader] 12:21 pm: sorry guys.. my server went down for a few [guavaman] 12:21 pm: does anyone know why my connection keeps expiring? [feb2865] 12:21 pm: ok [feb2865] 12:22 pm: are you guys reading me now? [soultrader] 12:22 pm: ill look into guavaman... it may be the settings [Trading Room]: nasdaq5048 has left at 12:22 pm [soultrader] 12:22 pm: yep [guavaman] 12:22 pm: tx [torero] 12:22 pm: y [soultrader] 12:22 pm: luckily i was able to copy and paste the previous comments [feb2865] 12:23 pm: here's the rules for trading these levels [Trading Room]: MrPaul has entered at 12:23 pm [MrPaul] 12:24 pm: did i miss alot? [soultrader] 12:24 pm: paul we all got signed off [MrPaul] 12:24 pm: oh ok [soultrader] 12:24 pm: server was down.. i apologize [MrPaul] 12:24 pm: not your fault [Trading Room]: nasdaq5048 has entered at 12:24 pm [feb2865] 12:24 pm: once the market break these levels...you get in with all you got...you don't fade the move, you don't "play" the level by no means. [feb2865] 12:25 pm: once the market break these levels...you get in with all you got...you don't fade the move, you don't "play" the level by no means. [torero] 12:25 pm: how do you determine breaking? by 5 ticks? 10 ticks? [feb2865] 12:25 pm: you don't look at your favorite flavored and well seasoned indicator...you just make the trade [feb2865] 12:26 pm: wel good question....I ALWAYS shoot for 5 ticks/pips or whatever you want to call it [feb2865] 12:27 pm: the crosses you're going to trade for now....EUR/USD....GPB/USD and AUSD/USD....pick one or the three doesn't matter [soultrader] 12:27 pm: so a break is considered when price violates a S&R level by 5 pips? [nasdaq5048] 12:27 pm: So put in buy stop 5 ticks above/below previous high/low first thing in the morning?? [feb2865] 12:27 pm: no the trade is AT the S/R level [feb2865] 12:28 pm: this is a radical trade. the moment you wait for a confirmation, citigroup is going to take your money away [namstrader] 12:28 pm: profit is then 5 tics [soultrader] 12:29 pm: so you would play a break of the high and not fade the high? [Trading Room]: wrines has left at 12:29 pm [feb2865] 12:29 pm: yes 5 ticks...you want more well you can use trail stops...I don't use them [nasdaq5048] 12:30 pm: Assume the high is 1.2800. What do u do when it first trade at 1.2800 ? [feb2865] 12:30 pm: James, this is how I do it...I place an OCO order on the levels [Trading Room]: wrines has entered at 12:30 pm [feb2865] 12:30 pm: one cancel the other [soultrader] 12:31 pm: so you would reverse once the fade is wrong? [feb2865] 12:32 pm: James you can do a backtest and if you play the crosses I mentioned you migth have a reverse hitting your stop loss once a month. Once this market breaks a level normally keeps going [feb2865] 12:32 pm: I am not done yet [feb2865] 12:33 pm: In september my stop-loss never got hit on the three pairs [nasdaq5048] 12:33 pm: I think i was kicked out when u talked about stop loss. Where was the stop? [feb2865] 12:33 pm: beacuse I onlys shoot for 5 ticks...I don't want more [feb2865] 12:34 pm: ok stop lossess.....20 ticks for EUR/USD...25 FOR GPN/USD and 20 for AUD/USD [nasdaq5048] 12:34 pm: ok [wrines] 12:35 pm: ive been kicked a bunch of times - i hope someone will save a transcript [soultrader] 12:35 pm: i got it wrines [wrines] 12:35 pm: great thanks - and big thanks to you Feb! [feb2865] 12:36 pm: 15 Ticks a day [feb2865] 12:36 pm: in three pairs...that's all you need [feb2865] 12:36 pm: but here's a little problem [nasdaq5048] 12:37 pm: Does the bid has to be above the resistance, or the offer has to be? Or do u use futures? [feb2865] 12:37 pm: sometimes the London market gets into a move and New York Market follows...when you get up...you just missed the bus.........how do we deal with that???? [feb2865] 12:38 pm: any takers? [MrPaul] 12:38 pm: how? [feb2865] 12:38 pm: guys could you wait 5 to ten minutes if you don't mind please ? [soultrader] 12:38 pm: not sure [soultrader] 12:38 pm: sure [MrPaul] 12:39 pm: np [feb2865] 12:39 pm: meanwhile I' would like to see how you guys could deal with that [Trading Room]: JayRemy has entered at 12:39 pm [torero] 12:41 pm: i live in spain so getting up for london opening is no problem for me [torero] 12:41 pm: it's 9am here when it opens so got this part covered [torero] 12:42 pm: being there is 80% [Trading Room]: feb2865 has left at 12:42 pm [torero] 12:42 pm: as woody allen said [torero] 12:42 pm: the 20% is hella tough [namstrader] 12:43 pm: my heroe with an asian like my fiancee from philippines [soultrader] 12:43 pm: same here.. im usually up [feb2865] 12:48 pm: I am back sorry for the delay [soultrader] 12:48 pm: its okay [namstrader] 12:48 pm: no problem [torero] 12:50 pm: . [feb2865] 12:50 pm: I want you do backtest these crosess on the daily charts and count within a month range how many times you could get five ticks or more...just a little homework [Trading Room]: nasdaq5048 has left at 12:50 pm [Trading Room]: nasdaq5048 has entered at 12:50 pm [feb2865] 12:50 pm: I want you do backtest these crosess on the daily charts and count within a month range how many times you could get five ticks or more...just a little homework [nasdaq5048] 12:50 pm: check [torero] 12:51 pm: ok [soultrader] 12:51 pm: k [MrPaul] 12:51 pm: sounds good [torero] 12:51 pm: i can do that [namstrader] 12:51 pm: sure [feb2865] 12:52 pm: ok here's how to don't be left out of the bus if the market is already on the move. [feb2865] 12:53 pm: 7:00 PM EST....the begining of Asian Session...this is where you should be drawing your S/R lines....not the next day [soultrader] 12:54 pm: this goes for all 3 pairs? [feb2865] 12:55 pm: inside days...does anybody know what it is? [feb2865] 12:55 pm: yes all three pairs [torero] 12:55 pm: y [soultrader] 12:55 pm: yes [MrPaul] 12:55 pm: so @ 7pm est you would draw your S/R from the previous days session ( 6pm-5pm)? [feb2865] 12:55 pm: AUD/USD always moves first [feb2865] 12:55 pm: exactlyPaul [MrPaul] 12:56 pm: thanks [feb2865] 12:57 pm: you take in account the past session move but you wait until seven just in case form 6:00-7:00 the market has done some sort of move [MrPaul] 12:57 pm: then trade the say eur/usd @ 8pm New York open with that data set? [MrPaul] 12:58 pm: err sorry 8am est [feb2865] 12:59 pm: no you trade all pairs that way...The Asian Market and london market normally takes position in these hours hedging EUR/USD so you could see a move...most fo the time the move...EUR/USD will be the slowest followed by GPB/USD and AUD/USD [MrPaul] 1:00 pm: okay [feb2865] 1:01 pm: if is an inside day expect an early breakout for sure on the following session [feb2865] 1:01 pm: so you don't want to miss the move rigth? [torero] 1:01 pm: so all these openings we're trying still for 5 pips profit correct? [soultrader] 1:01 pm: nope [feb2865] 1:02 pm: yes 5 pips [feb2865] 1:02 pm: and I don't recomend more [feb2865] 1:02 pm: I always have a bracket order setup [feb2865] 1:03 pm: OCO order with 5 pips limit and 20-25 ticks stop loss in place [feb2865] 1:04 pm: don't be alarmed on what I am going to say next please...it's just my style..... [torero] 1:04 pm: ok i have to keep the opening times in mind [MrPaul] 1:04 pm: hmm i just gazed across IB's forex faq's and saw this [soultrader] 1:04 pm: can you clarify one thing for me.... you set a order to fade the highs and lows? and use a 20-25 tick stop? [feb2865] 1:05 pm: if is an inside day.....I'll set the bracket up after 7:00 PM [MrPaul] 1:05 pm: Is there a stop loss available on forex trades? No there is not stop loss available [soultrader] 1:05 pm: or do you only play the breakouts? [Trading Room]: wrines has left at 1:05 pm [Trading Room]: wrines has entered at 1:05 pm [feb2865] 1:05 pm: anything inside the range is noise... [feb2865] 1:06 pm: check the charts and let me know [guavaman] 1:06 pm: where did all the vol on ES go? [soultrader] 1:07 pm: its the doldrums guavaman [feb2865] 1:07 pm: once you see the market breaking the level, you'll notice an increase in momentum...big time [feb2865] 1:07 pm: always happens [soultrader] 1:07 pm: this is when u get in? [feb2865] 1:07 pm: exactly....the big volume is on breakouts [feb2865] 1:08 pm: thei is the signal the banks are waiting to dump their gazillions [feb2865] 1:08 pm: they don't trade noise [soultrader] 1:09 pm: okay [feb2865] 1:09 pm: test [namstrader] 1:10 pm: i will be back thanks again feb [feb2865] 1:10 pm: noise has a reason in froex......position trading...swing trading [feb2865] 1:10 pm: ok nams [Trading Room]: TinGull has entered at 1:11 pm [feb2865] 1:11 pm: remember we're at the end of the food chain...tmost traders are lured by trading intraday...wel you could catch some moves but not consistenly [feb2865] 1:11 pm: forex and indices are different mammals [soultrader] 1:11 pm: i see [feb2865] 1:12 pm: I set a bracket trading....and I go to sleep [MrPaul] 1:12 pm: i have to go thanks so much feb, talk with you all later [feb2865] 1:12 pm: no problem Paul hope it helps [Trading Room]: MrPaul has left at 1:12 pm [feb2865] 1:12 pm: there's more [feb2865] 1:12 pm: test [feb2865] 1:13 pm: about forex brokers [feb2865] 1:13 pm: don't use them [feb2865] 1:13 pm: here's why [feb2865] 1:13 pm: test [soultrader] 1:14 pm: test [feb2865] 1:14 pm: Forex market is controlled and manipulated by the big boys. They call themselves the"interbank" market and the spread is razor edge...very thin [feb2865] 1:15 pm: Forex brokes are market makers....They "make" the market for you [feb2865] 1:16 pm: meaning they take the other side of your trade and re-sell it to the interbak market...well guess what???? not always happens [soultrader] 1:16 pm: i see [feb2865] 1:16 pm: so the can make any price the want...and the worst part is that you can't do anything about it [feb2865] 1:17 pm: currency futures is the way to go [Trading Room]: guavaman has left at 1:17 pm [soultrader] 1:17 pm: ahh. so you trade currency futures only? [Trading Room]: guavaman has entered at 1:18 pm [feb2865] 1:19 pm: I don't trade it I have an arrangement with a bank, you know this "I scatch your back if you sctratch mine" thingy but is reall hard 'cause I have to do the whole thing by myself. I have to create the croos and calculate the spread [feb2865] 1:19 pm: but I have a couple of friends trading currency futures. They're very satisfied customers [feb2865] 1:20 pm: turnover is around 60b daily..not bad [feb2865] 1:20 pm: and some brokers are offering DAT (direct access trading) I use that for indices [guavaman] 1:21 pm: do most traders in here trade forex? [soultrader] 1:22 pm: so if i consider trading forex.. i should start with currency futs? [feb2865] 1:22 pm: I want you guys to really do your homework and backtest so you can confirm what I say [feb2865] 1:23 pm: I this currency futures is the way to go....the comission is low and the transparency is there [soultrader] 1:23 pm: will do [feb2865] 1:23 pm: 4-6 dollars round trip versus 30-50 dollars spread on arket makers [feb2865] 1:24 pm: another thing is leverage [feb2865] 1:25 pm: market makers will push you into 100:1 or 400:1 This is an invitation to blow your account [feb2865] 1:25 pm: use your leverage wise [feb2865] 1:26 pm: as any amrket money management is the key...most of my trades are while I'm sleeping [feb2865] 1:26 pm: and I sleep all nigth...real good [soultrader] 1:26 pm: whats the leverage for currency futurs? [feb2865] 1:26 pm: 12:50 per tick /per contract on GPB/USD [feb2865] 1:27 pm: 6:50 per tick/per contract on EUR/USD [Trading Room]: TinGull has left at 1:27 pm [soultrader] 1:27 pm: 12:50 what does that mean? [feb2865] 1:28 pm: ok with 1 contract, evert tick move on GPB/USD is 12:50 [soultrader] 1:29 pm: ok [feb2865] 1:30 pm: remember this is how banks play this game [feb2865] 1:30 pm: don't trade against them [soultrader] 1:30 pm: ok [soultrader] 1:31 pm: thank you very much raul every line was priceless [feb2865] 1:31 pm: like all markets, you could get stopped out...but most often than not you'll make it. Like I said before I didn't get stopped out for the whole month of spetember and in October just once [feb2865] 1:33 pm: or if the market don't break the levels you just don't trade..as simple as that...it could happen depending on the pair once or twice a month...actually I could trade AUD/USD for the whole trading session last month [Trading Room]: TinGull has entered at 1:33 pm [soultrader] 1:33 pm: feb.. how did you come up witth the 20-25 stop loss? [feb2865] 1:34 pm: well I get that from the bank..based on volaliltily...these numbers change every 30 days [feb2865] 1:35 pm: if you want I can make a post everytime they change [soultrader] 1:35 pm: how much does it change? [soultrader] 1:35 pm: that would be great [feb2865] 1:35 pm: not much [feb2865] 1:36 pm: sometimes GPB is 22 sometimes is 25 GPB/USD is the most jumpy of all [soultrader] 1:36 pm: i see [feb2865] 1:37 pm: if you're going to trade currency futures my advice is to have charts with one broker and clearing with DAT [feb2865] 1:37 pm: that way you go straigth to GLOBEX [soultrader] 1:37 pm: okay ill look into it [feb2865] 1:39 pm: I will look into currency futures and still will do some trades at the bank...once you start trading forex this way you'll be amazed how easy it is...sometimes it's unbelievable [soultrader] 1:39 pm: ill need to practice and get used to it [feb2865] 1:43 pm: if you guys are really looking into forex trading, I could keep doing this small informal seminars. We could talk about the yen, the swiss franc, exotic currencies and how to make money ...and if you're looking to trade something seasonal this winter, I'll be watching heating oild very closesly [torero] 1:44 pm: . [torero] 1:44 pm: great [soultrader] 1:44 pm: im definitely interested raul.. thank you very much [torero] 1:44 pm: i currently trade with mbtrading [wrines] 1:44 pm: yes thanks a million [torero] 1:44 pm: no dealing desk [torero] 1:45 pm: and i have spread of 1 pips on eursd and usdjpy [feb2865] 1:45 pm: I don't know but I have the funny feeling that some people are doing their homework already LOL [torero] 1:45 pm: straight to spot market [torero] 1:45 pm: lol [torero] 1:45 pm: excited about getting some profits, free money [feb2865] 1:45 pm: really???I'll have to look into that [torero] 1:45 pm: raul that's generous of you to tip us [torero] 1:46 pm: yes, the rules are changing [torero] 1:46 pm: i used to trade with fxcm i got killed with the spread [feb2865] 1:46 pm: well this is something I got from my mentor [torero] 1:46 pm: check out this site nondealingdesk.com

This indicator is based off of Dr. Alexander's famous book, "Trading For A Living." Known as the force index, it was written by the Tradestation community. (description provided by Torero) Volume * (Close - Close[1]) This is similar to momentum indicator except it adds volume as an equal importance. Basically, the difference of the close of yesterday (or bar) and the close of today multiply by today's volume (interchange day to bar or vice versa). So the movement of the price with that volume tells how much impact volume had in moving price bar to bar. The bigger the movement, the higher reading the indicator will show, provided the volume remains the same. If the close stagnates, the indicators will show a small reading. The divergence happens when either volume dries up while the price is moving in a steady pace or price difference was miniscule while volume remains the same. Screenshots FORCE-INDEX.ELD

Hi phil895, Welcome to the club Do you day trade or swing trade? Wish you the best in your trading journey. Feel free to post any questions on the forum.... theres plenty of good traders here willing to help. Regards, Soultrader

Thanks Torero.. I am aware of the indicator from Elders book. If you dont mind I would like to use your comments for the indicator description I plan to post in the custom indicators forum.

Its a combination of both. Its important to know what type of cards each player likes to play with. Also the style he uses depending on the hand. With the ability to read the player and the ability to understand the cards folded by other players... you can increase your odds of knowing what your opponent has just by looking at the flop. (I hope this makes sense) I did make the transition from playing poker to playing online poker. Although I am still very profitable in both I find online a harder game. Probably related to the adjustments floor traders need to make when going electronic.

Thanks Torero. Ill add a new thread in the indicators forum. Did you code this yourself? Would you happen to have a description of what this does as well? Also.. I want to ask you a question on the settings. If I am using a 233 tick chart would you recommend making the setting lengths to around 5-6? Thanks

Hey Torero, Where did you get the force index on TS?

Hello Torero, Man! I can talk about poker all day if I could. Poker is a game of pyschology and probability. Theres a good quote from the movie Rounders. "If you dont know who the sucker is in the first 10 minutes... you are the sucker." In poker, you can apply many different strategies just like trading. You can choose to trap your opponent, play him straight up, or make it manipulative in case your opponent is good enough to start reading your mind. A good poker player understands that predictability is no good. Therefore good players have a mixture of style. They play aggressive when they have to and tight or conservative at times. In poker a small bet is usually done to obtain information about your opponent. Of course if your opponent is good enough he will raise you on top. However, if the opponent calls (just matches my bet) this can be indicated as weakness and I can raise bigger on the next card. It all depends on the size of the pot you are trying to win. No reason to push your chips in the pot if the pot size is small to begin with. Good hands may come once an hour.... it is up to the player how to monetize off this. I like to raise on most decent hands. This forces the weaker hands to leave the action. The last thing I want happen is a weak hand to turn into a monster because the opponent had some free draws. You better pay to see the next card... and I will make it expensive for you. In no-limit holdem, a player can bet his entire stake in any given hand. "Outs" are referred to as the cards that you can catch to help improve your hand. If I am holding two cards AK suited spades, and the board shows 2 spades... I have 9 outs to make a flush. However, whats important to keep in mind is that there is a possibility that a player who folded before you was holding a spade. So in my opinion, whenever I am in a situation for a flush draw, ideally I would have 9 outs but I like to substract 3 cards from it. (making it 6 outs in theory) Poker on a professional level is mainly about picking your opponents and understanding his strength and weaknesses. If I sit down on a table... the big chip leader is the last person I want to mess with. The little guys are the ones I want to battle to build my stake. Chip size is king. Without chips you are pressured with every raise. Therefore the chip leader is the bully and good players want to be on good terms with him. Very similar concept in trading.... we want to follow the big players not the little guys. Afterall most of the little guys end up losing. The pyschology of understanding your opponent is very similar in poker and trading as well. Big traders leave footprints.. and it is my job to understand what they are trying to do. In poker, I watch for tells. I will watch every single player see his hand before I see my own. I ask these questions: Why did he spend a few seconds longer this time to watch his cards? Why did he take a bigger drag out of his cigerette? Why is he looking quiet all of a sudden? Why the bigger raise all of a sudden? Why blink? Why talk before he bet? etc... All these information are clues for me to understand my opponent. There are times when I can completely guess the two cards my opponent is holding without looking at his cards. I understand what type of cards he plays and his tells. I compare this information to the set of cards I am holding and the number of players in the pot... and I am able to assume his holding hand. Very similar concept in trading dont you think? I can go on and on about poker.... so Ill end it here for now.

Yea I asked Don if I could publish that article a while back but told me TASC had full rights to it. Good article though.

Sometimes you need to press hard and sometime lightly. The markets are full of opportunities but not always do you see a sure bet. I find that one can enter a trade ahead of time using simple S&R levels. Once you identify a significant S&R level the odds are stacked in your favor. This is why I believe cluster points to be a key price level. People use many different methods to identify clusters. Moving averages, pivots, fibonacci, trendlines, etc... For example the YM just bounced off a significant price level at 12000 on Friday. This was a key psychological level as well a support on a major trendline. On Monday it then went on to rally over 100 points. I think these areas do not come around often but when they do one needs to trade aggressively. Just my 2cents.

I was gone for the day and looks like we missed a nice trend day. On the market profile chart the YM formed a P profile. During a downtrend this can indicate a short covering. On the daily charts however, price looks as if it bounced of the trendline. Are we seeing a continuation of the trend? Or was today a short covering?

Hi guys. Once again I'll be in the chat room tomorrow all day. Ive been missing in action lately but am back for good now. Please feel free to join the chat. See you all tomorrow!

Thanks for the post MrPaul. You might find StockTigers analysis and charts interesting as well. Alot of good charts he posted.

Ill be there Raul. Ill make sure to save the script also and perhaps make a sub-forum for chat room scripts. Looking forward to it. Thanks

Interesting question... I think a good trader can be a poker player good enough to be able to live of it. As some may know, I am a former poker player turned trader. Alot of similarities in the game. The way you trade Torereo (2-3 trades a day) Im sure you will no problem raking money from the poker tables.

LOL... can you make it tank 200 points tomorrow? Im counting on this Raul

That 12000 is a key level. *hint* What are the markets trying to do now? The YM is testing the trendline on the daily chart. This week will be a very critical week for the Dow.... a make or break time. Are we going to bounce off this trendline at 12000 or are we going to break it heading down towards the 11875 mark. We had decent sellers coming in the past few trading sessions with 5th consecutive day in lower value placement. (see attached MP chart) Clear warning signal for the longs. Will the longs be able to sit through this pullback? Theres definitely long liquidations throughout the past 5 trading sessions. Today will be a key day to watch market reaction to the current situation.

Some of you guys are going to hate me or laugh your hats off. I found this on reddit.com and I had to let you guys see this. Funniest picture Ive seen in weeks. Poor guy....

Excellent post Terry. One shot One kill... ahh now thats my style of trading as well I find it fascinating sometimes that many traders share similar weaknesses and we are all trying to find some method to overcome it. Overtrading was definitely one of my major weaknesses as a starting trader. But I was able to cure it just by switching mindsets and working on a handful of high probability trades. 2-3 trades a day can make you a good living instead of the 20 roundtrips a day trying to grind a few points here and there. The first 1-2 trades are usually my most important ones. If they are winners, I can usually meet my daily goal in the opening 90 minutes and call it a day. If they turn out losers, I end up taking 8-10 trades trying to come out plus. What a waste of time! I hate trading the entire day glued to my chair and screens. Like Terry said.... one shot one kill. And usually these opportunities lie in the opening 15 minutes. Best of trading, Soultrader

Very true torero. Trading is simple but for a new trader this is very hard to grasp. It takes time to trade with simplicity!

Hey TinGull, Do you think the same strategies used on the TICK can be applied to the Nasdaq TICK? I never paid any attention to the Nasdaq TICK so am very curious to see any traders using this tool successfully.

lol nice one protrader.

Thanks Torero. I also like to keep charts and videos on my trading to reflect and seek improvement. If you dont mind me asking, is the text and lines drawn on the charts part of the platform or do you use a third party software? Also, I remember you mentioning in the chat room about your exit strategies. From my understanding you like to exit a full position instead of scaling out? Are you able to sit threw the pullbacks/retracements this way? Thanks

Some of us here use the TICK as a tool to judge market internals or as part of our trading strategy. The TICK is a very interesting tool in my opinion and I admit I rely on it heavily. It offers me clues on market strength/weakness and any change in market sentiment. I would like to dicuss the TICK and the different ways traders use this tool to apply it into their trading. As some of you may know, I use the TICK's for several strategies including the opening play, TICK hook's, and fading the range extremes. Several other strategies can be built from TICK channel breaks or price and TICK divergences. I remember someone mentioning using the NASDAQ TICK.. how effective is this? How do you guys use the TICK to build a trading strategy? Please feel free to elaborate on this as I am always interested in hearing more about this tool.

Thanks Torero. Alot more clear with the chart you posted. Your entry point would be the test of the high (double top failure)? I have also found the 600 tick chart to work fairly well on the ER2. Thanks for the tip on this... also pretty looking charts you have there.