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Traderbeauty Method for the ES.


Traderbeauty

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mastertrader-the 1.6 is not so perfect when you use a smaller time frame like renko 8-2 -

you always need to see and decide which fib looks more accurate and to me the big 78 seems more correct.

as marketrulez said- the market went up during the night with low volume - you can check the volume on a daily chart only at the end of the day.

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Look at that unbelievable spike.

How for the love of moses a trader can succeed in such conditions?

Pay attention to the precise 78% fib support & the tweezer top on the 161% ext.

Ofcourse we had approximately 40-45 points move to the top (that we predicted in advance) prior the madness. :)

 

 

http://i.imgur.com/WtlrbPF.png

Edited by mastertrader7
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mastertrader-

this is not a volume spike-

this is the end of the day when all the day traders are exiting their positions because they cannot afford the night margin which can be 4k compared to 400-500$ so many of them just exit and get back in the next day.

you see this volume spike every day at the close- 4 pm eastern, but that was nice.

jane

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yep

already got 5 shorts there :)- but no stops so be very very careful, market can go easily to 2052

btw- something is wrong with your data- there was no spike down to 1872 so your green fibs are wrong- you need to refresh historical data.

also- i am not thrilled to do accurate fibs on a 60 minc hart- i use a 8-2 renko or 18-6 if needed.

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that might be a mistake- you cannot get "STUCK" on a certain level because its not written in stone.

if you look more carefully you will see that the was a previous top at 29.75 so what you do is exit a tick before which was almost at the 78. you can be greedy and you have to be flexible and creative all the time.

a previous top like that can trump the 78 but you are right- most likely it will get there and fill us.

good job.

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you see- while you were going long i was shorting the market because of my overall view using a much higher time frame.

i kind of didnt like it because the daily showed a nice up candle with high volume but go figure it out lol.

bottom line my shorts payed well.

if i have time i will post later some charts

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mastertrader- you cannot trade of 60 min chart- that is too dangerous and the stops are too large.

 

Friday was a classic day- just take a look how beautiful the market played.

(I was not home so did not trade at all other than some short positions ).

Early morning you can see that as long as you had a lower high and lower low you just enter at the fib level WITH THE TREND using a much lower time frame (renko 1-1 or 2-1 ) which will give you small stops and large targets.

Once the market bottomed- we do not need to be prophets or work for 3 hours at night try to guess where the market will reverse- no need- the market TELLS US.

Its very rare that a reversal is happening without "A TELL" . The only time that happens is when we have a capitulation with huge volume- normally we see a divergence ( meaning- no fib extension ) or a double bottom etc.

If you try to use just plain divergence you will get killed because on a strong trend these indicators will keep showing you divergence and of course going long will kill you.

Once we have higher high we do two things- first- WE DONT SHORT ANYMORE and second- WE GO LONG AT THE NEXT FIB RETRACEMENT.

As you can see the market kept signaling to go long till the end of the day.

Normally its not that simple and easy bu friday was.

Going to post one more example using also lower time frame- next post.

Hope that helps

Traderbeauty-Jane

 

http://i.imgur.com/XaeY8Gz.jpg

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So here is a very good example-

Even though the market at that time was red and down a lot- it tells you exactly what to do.

You can see that the new high went to 1.618 fib extension- meaning THE TREND IS GOOD.

We would not take a long at the 38 because it never went to 1.918 ( do yourself a favor and read my old post - not going to repeat) so you should not go long at the 38 but wait for the 50- the thing is that it never gave us a signal at the 50 only at the 61.8 which we should have taken using the 1-1 or 2-1 - , that was a 8 point minimum target.

you could have entered at any of the arrows on the 1-1 with few ticks stop.

 

http://i.imgur.com/D6UuB51.jpg

 

http://i.imgur.com/K9sffHw.jpg

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"We would not take a long at the 38 because it never went to 1.918 ( do yourself a favor and read my old post - not going to repeat) so you should not go long at the 38 but wait for the 50- the thing is that it never gave us a signal at the 50 only at the 61.8"

 

@Traderbeauty, What is the signal that you are looking for? On the renko 4-1 where you've drawn the fibs, just in front of the 50% there was a double-bottom but you didn't take that. It actually went through the 61.8% so what was the signal that told you it wasn't reversing and to jump in long here. Thanks.

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