Sandbox

[k p 10]

Any reason not to get in sooner today... one minute before the open?

 

I am happy to say that I followed the rules a bit better today and saw some gains, but right at the top, when the DL first breaks (I have mine drawn in just like yours), there is a little retracement that allows for entry at 3819. I don't recall seeing you write too much about getting in before the official NY opening times, so I'm wondering if there are any drawbacks to be aware of. Thanks.

 

What are the results of your testing for this sort of entry?

Edited June 26, 2014 by DbPhoenix

[k p 10]

What are the results of your testing for this sort of entry?

 

Drats.. you got me there! No formal testing. I am assuming that when trading the SLA it should work just as good, but perhaps you only backtested it during the RTH?

 

I fully understand though that this is something I should be testing myself, and I have already seen that price does make a definitive play in that most of the time it either fully rejects what has happened overnight and goes in the opposite direction, or continues with the current trend. This of course doesn't help much since its either/or, but I think there might be some characteristics that can be identified which might help to point in a direction. Sort of like how you say the first 15 minutes usually tells you what kind of day we will have.

[tradealot 10]

Does SLA work with Forex. I suppose this method is based on Richard Wyckoff, Wyckoff traded stocks not Forex so there is some debate there about Volume and price action in relation to orders coming in. Got a few questions. Are the green and red dots entry points and when you say chop, are you basically referring to ranges or side way movements. I have tried this method out on some charts and find it interesting.Thanks!

 

I haven't tested it on Forex since I have no interest in Forex, so you're on your own there.

 

The level of volume throughout the session is not a factor in the SLA.

 

The greens are longs and the reds are shorts.

 

Any sideways movement can be chop depending on how one wants to play it, if he wants to play it at all. A range can be ten or twenty or thirty points or more wide. Chop tends to consist of overlapping waves that provide no consistently profitable entries.

Edited June 26, 2014 by DbPhoenix

[Wolfhound 10]

We fell from the top of the channel to the bottom today within 20 minutes of the open. The rest of the morning moved generally sideways.

 

1. Just before the open we failed to reach yesterday's high. I marked the short on the first retracement after the fail even though it was at the open. I don't know if I could take this in real time, but I have seen how too often I have given litle regard to the failures before the open.

 

2. This is the next retracement, so I marked in the short also. I would prefer to take the first one, but this is acceptable, although at the overnight low.

 

3. The price turned at the Midpoint of congestion from the previous days, and the bottom of the 60 min channel. I put a long on the first retracement.

 

4. We failed to retrace 50% of the fall from the open, and when the DL broke, I put a short on the retracement. By now the price was starting to flatten out after the big fall in the morning. The bars started to overlap, and reduce options for success.

[Wolfhound 10]

After moving from the top to the bottom and back to the top again of our 60 Min channel, we are now sitting around the midpoint of the channel. The last few days have made tighter ranges, and while no quite a hinge, there is indescision between buyers and sellers of where to go next. The currently seem happy in this area.

 

Overnight we have a high of 820, and a low of 808, with a midpoint at 814. Just before the open we are below the midpoint and await the test of the limits at the open.

[DbPhoenix 42]

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[SquatAttack 10]

DB:

 

In post #82 (pg.11) you reveal a lot about your trading habits/preferences. Since you have proven yourself to be a market veteran in multiple threads over multiple forums, one would be wise to heed your every advice, would he not?

 

I came away from that post in particular with two golden nuggets:

 

1. You only trade SLA around the extremes (upper and lower limits of Daily/Hourly TC). You are "content not to trade until the best opportunities arise". Also not trading around the means, which is always choppy. "It's not a matter of "actively trading" but of locating the best opportunities and trading size. Otherwise, one is just overtrading with no particular purpose."

 

In essence, you capitalize on the few times price is around the extremes instead of trading SLA without AMT every single day, correct?

 

 

2. You are trading "far less than anyone else who is attempting to implement it". It seems like all the newbs (including myself) are getting so narrowed in on perfecting SLA that they forget the appropriate context to apply it, would you agree? Patience is a virtue.

 

 

An issue of ambiguity I'm having is to know when to begin using SLA "at" these extremes. For instance, if the 9:30 open is NEAR an extreme, but not AT or ON an extreme, do you go ahead and trade SLA from the open?

 

I recall reading one post where you said it was a "go mow your lawn day", but I cant remember where I read it. Obviously that day was probably around a mean, so I'm assuming you walk away from your charts if you see the day is opening at a mean?

 

 

 

I HIGHLY appreciate all the hard work you've put into all these threads, DB... sincerely. You have given me hope in a time that I need it most, and led me to the water that might finally quench my financial thirst. Words cannot express my gratitude.

 

I'm glad you're finding value in it, but the questions you've asked are essentially hypotheses that must be tested in order to find the answers that are best for you, and those may not be and probably won't be what are best for me.

Edited June 28, 2014 by DbPhoenix

[tradealot 10]

 

I haven't tested it on Forex since I have no interest in Forex, so you're on your own there.

 

The level of volume throughout the session is not a factor in the SLA.

 

I never actually put much emphasis on Forex, until I began studying it. Ease of entry but unregulated. Stocks are better for Wyckoff trading, but it also works for Forex since there are many traders using it for FX, I assume it works. Volume might be tricky but FX is an interbank market essentially, so Smart money is there leaving there tracks.

I have been testing your SLA method on the FX markets and you can find the points of change. Why do you not use volume. Thanks!

[Wolfhound 10]

We atempted to break upwards today and then fell back to wander around a mean. People thinking of the weekend already.

 

1. We opened straight up to the overnight highs. This point looked like a rejection to me and I was expecting a fall. Instead we moved straight up yesterday's highs.

 

2. We got to the highs and started to hinge. Eventually it seemed we had broken above, made a lower high and were trying below. I put on a short here, but we moved back to the highs again. Possible range forming.

 

3. After reaching the mean of our overnight range, we broke the supply line and retraced for a long.

 

4. Short on retracement. This doesn't go anywhere and we settle down to a tight range.

[Wolfhound 10]

We have moved above the previous highs on Friday afternoon, and stayed up there overnight. Overnight we have a high of 38 and a low of 28. This low is our previous high, and the price has bounced off this in the morning, before moving back into the middle of the overnight range. We may test 28 again on the open, and if we get through we could have a sell off to match the gains from Friday.

 

Above the high of 38 we have open skies, and below 28 we move back into the congestion of the end of last week.

[DbPhoenix 42]

Regarding today's high:

 

Elite Trader - View Single Post - Ghost of If You Can Draw A Straight Line

[Wolfhound 10]

We opened and soon moved upwards to break through the highs. I didn't catch any of the move up. The short attempts failed, as they should on a day which ultimately saw us move well above the highs.

 

1. I put a short here on the retracement fron the high, but it couldn't break the recent swing low, and was just a pause before another move upwards.

 

2. Here there is a short after a double top high. This one starts to work and then fails and we move into a sideways range.

[Wolfhound 10]

The price has continued its march upwards. The daily demand line is strong, and we are consistantly making new highs now. Now we are above 850, people will be looking at the next round number at 900. It will be interesting to see if we get there, and it there is a big profit take at that point. Something to watch for over the week.

 

Yesterday, after a big fall before the close, which took back a lot of the days gains, we have continued upwards overnight, and have broken the highs before the open. The indications are that there is interest in bringing the price higher.

[Wolfhound 10]

Excellent. The magic lines work again.

 

At the time, no one thought we would get here, yet here we are.

 

Current upper limit is at or about 4050.

Edited July 2, 2014 by DbPhoenix

[Wolfhound 10]

We made it to 894 yesterday. Not quite 900, but close enough that we can touch it easily today. Often after these crazy up days we get a similar reaction downwards, so it will be interesting to see if this happens today. Now that we are close to 900, traders will be dreaming of 4000 for the holiday (and maybe a crash afterwards).

 

Overnight we have moved between 83 and 91, and we are close to the upper end of this at the moment. A break below 83 could giv us a big fall, and above 91 will see us test at 94, and possibly closer to the 900 mark. Hopefully it will be interesting today, and not just a ramble around the mean.

[Wolfhound 10]

We tried for the 900 point again today. I couldn't get in at the opening rise and there was a bit of ranging after that. I guess a lot of descisions are being made around this area, so it may take time to work through.

 

1. We opened upwards to 92, and then retraced 50% of the move from 84. We moved up again to 93, and again retraced without breaking the 50% point. I placed a long here thinking we were either in a range or we might be showing signs of strength for a breakout. This reached 93 again and failed.

 

2. After a lower high and retracement I put a short on which may only go to 88. Eventually it made it just past 88 before turning up. At this point I thought we might be in a range for now.

 

3. Here we did not drop below the overnight high on the retrace, so I chanced a long, knowing that the all time high was a few points away. This went nowhere.

 

4. This time after the line break and higher low we had some space to the top if it worked, so I put a long on here, which moved up to the highs again eventually.

[Wolfhound 10]

After making a high of 96.5 yesterday, we made a big fall down to the previous overnight lows at 83. Obviously someone cashing out for the day. We didn't break through that low however, and moved back up to somewhere around our mean for the day of 90.

 

In the morning we have moved up again to the mid 90's. Again, there must be someone out there who would like to test the 900 mark. Wait and see.

 

Areas to watch are the high at 96, and lows at 88 and 83. If we pass through 83 in particular there is not much stopping the price reaching the 50's.

[DbPhoenix 42]

The purpose of these charts -- in case it isn't obvious -- is to show what one can achieve simply by following the rules. If one is wondering why these trades were taken where they were, I suggest that he study the rules, then determine why and how each of these trades were made where and when they were made. If one doesn't understand the rules, much less how to apply them, he can't very well be expected to follow them.

Edited July 8, 2014 by DbPhoenix

[Wolfhound 10]

The jobs announcement shook things up before the open, but then we stayed within the limits of that trading after the open. Obviously most of the money was played from before the open.

 

1. The jobs announcement moved the price up before the open, but as so often happens, the rise is retraced on the open. I was a bit late getting into this short, but it was the first retracement for me, and it didn'tgo far.

 

2. Long after the higher low.

 

3. We failed to reach the previous highs, so I put a short on the retracement.

 

4. Another failure to reach the highs. This short went nowhere.

[Wolfhound 10]

There was no 4000 for the 4th of July, but we did make it above 3900, eventually stopping at 918. Since then we have drifed off to sit above 900 in the morning.

 

For the open we have a low of 905 and a high of 918. Below 905 we will soon start to get into the congestion of previous days. 900 is 50% of the move up over the last few days and it is right within the busy area of Friday.

[Wolfhound 10]

A calm day within the previous limits. My entries weren't too bad, and I didn't overtrade. Try again tomorrow.

 

 

1. the open it looked like we moved into a tight range. I took a long on the higher low on the chance of getting in early on a breakout, but it didn't happen.

 

2. I tried a long again, when we bounced off the 50% point. This one worked better, and we moved up to 916 before halting.

 

3. Because we could not make it to the previous highs, I saw the double top as the opportunity for a short. This did go down eventually, but I would need to have a stop above 916 to hold on. A 2 point stop is manageable. It all depends on how low the entry is from the previous swing high.

[Wolfhound 10]

We failed to get to the highs yesterday, and we then fell back and have moved back below 900, taking back most of the gains of the weekend.

 

Overnight we moved between 897 and 907 and in the morning we are close to yesterday's low of 896. This area is at the highs of last Wedensday, so below this we move into the congestion from then. Below that we have a low at 883, and then a big fall off after that. Above 897 we have highs at 916 and 918.

 

I hope you understood the AMT implications of your first chart.

Edited July 8, 2014 by DbPhoenix

[DbPhoenix 42]

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[Wolfhound 10]

1. At the open we tried higher and failed, we broke through the lows, and I put a short below the lows. I didn't know if it was going to turn back up straight away or make a few points into the congestion of previous days. In the end it fell sharply. As usual I never know what is going to happen after I place a trade. The prep work just gives me an inidcation of areas of interest, and I can choose what to do depending on how price acts at those areas. Today was one of those rare days where it worked straight away.

 

2. At this point I have indescision. The supply line has been broken, and we have a higher low. However, my longer term chart still shows a long way to the next level, and my prep leads me to expect a further fall. Ultimately it did fall, and this was a dog that didn't bark.

[Wolfhound 10]

Yesterday we returned to the mean of the 60 min channel, after a large fall from the top of the channel.

After hitting a low of 841, we have risen again to a high of 872 in the morning. No particular direction is apparent at the moment, and we may decide to rise towards the highs again. Short time to write this because of computer problems. Will watch levels as usual.