Tuesday, 2 October 2012

Deja Vue

I love how patterns just keep on repeating themselves. I tell my students that they have an advantage if they are visual people because they will remember the patterns better. I wasn't visual when I started, but over the years have become very focused on the patterns.

Today's open was a repeat of yesterday's so I didn't even need to have a good memory. Price opened at the VAL of my split distribution, tested the VA and rejected it giving me my first trade, a short.

The market then did what it did yesterday and went back to the VAL of yesterday. Resistance works well the first time. It has to prove itself the next time. This time it didn't and value was accepted within the VA and I went long. I didn't even have a chance to scale out at the POC as price went up so fast so I scaled out just below the VAH and then exited the balance after price came back down into the VA.


9 comments:

  1. Hi – Will you please post a link to your Blog/Article at The Day Trading Community at vorts.com? Our members will really appreciate it.
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    It's easy to do, just cut and paste the link and it automatically links back to your website. You can also add News, Photos, and Videos if you like.
    Email me if you need any help or would like me to do it for you. I hope you consider sharing with us.
    Please feel free to share as often and as much as you like.
    The Day Trading Community: http://www.vorts.com/day_trading/
    Thanks,
    James Kaufman, Editor

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  2. sir,

    At 20:45 time just a bar ahead of yellow vertical line in above picture. pull back setup looks valid to me? can you explain why you have not taken that trade(filter used or what)?

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  3. smit, I don't trade at that time of the night. In any event, that's just 15 minutes before the market closes and I wouldn't take new positions then as there is a lot of position squaring begining half an hour before the close and I might take a counter day trade then to take advantage of people getting out of their trades at the end of the day.

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    1. Thanks for reply. Suppose if that setup is there during early in the day then would u take that or not? and please teach me the reason for the same?

      Thanks

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  4. EL - I am testing out the Fin Alg Ninja add on. Splitting the distributions is excellent, and nothing else seems to offer that, at least as conveniently and cleanly. My question is when a distribution obviously has a serious range extension down or up, typically with one column of single prints, do you typically do the split before the range extension column or after the range extension column?

    Thanks for any advice -

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    Replies
    1. JMF3, The range extension is the start of the new so that is the start of the new distribution.

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  5. smit, yes, its a pullback in the direction of the trend.

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  6. James, by all means put in a link. Glad to have more readers.

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