Hi UE,
I'll try to explain as best I can how I trade them...Yes, I would have taken the first trade, the one you have outlined in green....
changes are I would have taken a second one, where it briefly dipped under the WVAP and recovered - that would have added another almost $2.00 for the day. The bottom indicators are always secondary, once I'm in it's all about that green line and the pivot points. You are seeing the 5 minute chart, and you will see reactions off those lines almost always. But if you change the timeframe to 1 hr or longer, you will see longer term pivots, and I'm always aware of those as well. I would have had oil in the price column, not spx...just forgot to change it to take a pic of the chart. I always have the underlying to reference, and I try to keep up with the trendlines on the underlying, but I strictly trade off this when I'm in a 3x ETF. It has given me the best look at these so far.
Regarding your 3rd red circle - I wouldn't have put on the trade that early without a general sense of direction. That failure would have caused me to immediately look at Gush, the inverse of Drip. I like to see a couple of bars trade above the trendline (preferably a couple of hollow candles)
I was able to catch spxs today before the bottom fell out. I had a really good setup and I took it. The initial cross over the bar wasn't the buy for me today - it was very close to the pivot point, and I waited for it to cross that. I posted it as kind of a warning to let people know there might be some down coming, not because I knew exactly what was going to transpire in 2 seconds, lol. And to your question, yes you have to be lightening fast, and you have to trust your rules of trading, because they move quickly.
Reading quickly back over your notations...I would have either sold at that first high point - I would bet there was a pivot there on the 5 min, but nonetheless I always sell when it starts backing off. Price loves the green line, and will move back towards it after a big run. These are things I have observed from trading these things for so long - I realize some of my decisions are subjective, but I have to learn what I've used from trading these. I think I already answered the 3rd circle...that was a new trading day, and I would have looked at GUSH instead.
Happy to answer your questions...I'll try the A/D line and see if it adds anything for me. |
