emios

Hey there...try looking at longer term S/R levels...on the daily for example, and then enter based on your criteria using a lower tf chart. The problem is that there is a lot of price manipulation at s/r levels, surges in volume can be due to algorithmic activity...this is what is causing the 'false breakouts' as they are called. Day trading has been difficult for me recently, and I realise that my personal breakout strategy is losing its effectiveness...it is very similar to yours by the looks of it. Part of the game is being willing to adapt to changing conditions. HFT is here to stay, and there is nothing that we can do to stop it, though no algo operator (was talking to one today in fact) is willing to take on a huge position, such as would be the required with longer tf s/r levels...the risk is too high for them. Hope I've been of some help! Good luck with the trading mate!

I've been daytrading us equities for the past year or so, with varying success. However, the intraday stock market is manipulated by complex algorithms which detect volume surges, which has made determining a 'true' breakout more and more difficult. I have since adapted a swing mindset, stocks generally tend to respect s/r on the daily chart more than the 5 min. I find that looking at finviz.com for my levels is very useful indeed, then I can assess whether that stock or etf has a good chance of rebounding off those levels. Future plans...Well, I'm currently at Oxford studying Modern Languages ( not a financial course, I know!), and I'm hoping to get a job trading equities or commodities at Credit Suisse when I graduate, which will be two years from now. However, I know that, given my background and the rise of the 'quant' traders, that this may be nigh on impossible to achieve. Therefore, I'm trying to widen my skills, in order to follow a more standard Investment Banking path...hoping to complete a CFA designation in a few years, and might take a law conversion, focusing on corporate acquisitions and mergers. That's the plan, anyway. It's not an easy world anymore, and given the stringent reforms that may be headed Wall Street's way, it's about to get a whole lot harder.

Hey there! Oh well, you lose some days, you win some...Personally, I am more comfortable with a breakout above a horizontal line of support/ resistance, as I find that entering after the break of a trendline wedge can result in getting headfaked, this is what happened with the first trade...therefore, if I had entered, it would have been above the level of 964. However, I wouldn't have entered the trade, as none of the candles managed to close above this level, indicating that there were either latent sell orders resting at the level, or that simply buyers had lost interest, as they perceived price was too high. When there are traders in the pits playing call spreads, as is the case when there is a ranging market, their entry points have to be precise, as they operate on such small margins. Also, note the VOLUME. This is key for me, I would only enter a breakout on high volume, knowing that I can effectively 'surf' the momentum wave up, and sell into that buying when I have made some profit. Not only did price not break and 'hold' 964, the thrust up was on very low volume, which suggested that the move lacked conviction. Ok, second entry...I would have probably entered at 962, considering that this represented a break from the range. The volume supported the move, which is good enough for me. Whether this was a scratch trade or a loser is dependent on profit targets to be honest. I would have moved my stop above the 'wicky' green candle which followed the two bearish bars, so I would have stopped out for a small winner, barely better than BE. However, there was a run up to the top resistance level, which price was not able to close above. NOTE THE HUGE VOLUME WITH A FAILURE TO BREAK AND HOLD HIGHS- POTENTIAL SELLING CLIMAX. This is what happened. I would have entered on a break of 962 to the downside, so long as the volume supported this. As it happens, in this case, it did. Price is currently 959.50. It will be interesting to see what the reaction is in the next market session, we could see a test of the lows of 955 and a rebound. Hope I have been of some help. After all, I'm a youngster like yourself and learning new things every day! I'd be interested to see what more experienced traders would make of the chart...

Hey Novicetrader1, I'm going to be 21 on Sunday, just wanna say that it's great to see someone of my age who is doing the same thing as me! this is the most effective way to trade in an environment which is becoming more dominated by algorithmic trading...my equities trading has suffered as a result of it...pray they don't hit the futures too badly! Are you at university? Good luck, and keep up the solid work. Discipline is the key! Emile

Hey dinero, you might want to start looking at refineries stocks etc considering you're focusing on oil futures.Can help you to maximise profits... Good trading btw!

Hey everyone, Browns, are you still interested in using this strategy? Its a great way of finding out stocks which have momentum... Hope all is well.

I just want to say that I think this is, by far, the best trading forum in the world...none of the nascent negativity that there is at ET, or hopeless imbeciles who think they can start trading with $100, like there are at ForexFactory. And it is guys like you, Browns, Dinero, Soultrader and db (plus many more) that keep up this positive, helpful and informative atmosphere. Be proud of it. Emile

If you're trading that kind of volume: I have three words for you: dark liquidity pool.

Hi Browns, I've looked at the thread, and unfortunately, no one came to any conclusion about this issue. I was just wondering if there was anyone here who was using volume in their futures trade analysis...

Hi there everyone. Basically I'm at university and desperate to start trading live as soon as I can, as I wish to enter the world of finance (I don't do economics, which makes it nigh on impossible in the first place). I wanted to be able to trade stocks, as they are more simple to trade, as I can understand the volume in them, but the $25,000 pattern day trader rule has made it impossible for me to enter the market. The only option I have open to me is futures. Is tape reading now obsolete due to the changes in the way that the CME report tick data? Please respond. I am aware that time is running out, and my chances of entering the world of finance as a grad doing a pathetic french degree are very slim already.

LOL...that looks like a lot of people's indicator driven trading forex strategies....

Great stuff Browns, Your trading the CL contract using candlestick analysis has convinced me that it would be an effective addition to my stock and forex trading method ( I'll hope to trade the oil charts alongside oil stocks). I really enjoyed reading the thread last year, unfortunately I was not able to post most of the time due to time constraints (as I'm at university in the UK at the moment...they work us hard!). Hope everyone has a happy Christmas and a prosperous new year! Best wishes emile

Soul needs to come in and clear some of these posts out. I can't see why someone can be offended by someone offering them help...perhaps there are personal issues? I know that trading can certainly bring out the demons from within ourselves. Keep up the good work brownsfan!

I second that, it's got an interesting section on looking at the options market alongside the other instrument...a batter text, because there is less jargon. After all, master the markets is simply a selling tool for Tradeguider.

you could use VSA for micro forex futures. They have a lower margin requirement, and have a centralised exchange.