Journey of the ES - Wannalearn12

[wannalearn12]

Lem, going quite from now for a long time.. check email Sunday.. I'll keep you updated. bye all

[LeMercenaire]

Lem, going quite from now for a long time.. check email Sunday.. I'll keep you updated. bye all

No worries, Bud.

Break a leg in the exam and I look forward to getting your mail on Sunday.

Keep on truckin'.

[LeMercenaire]

Back on the screens this week, after an enforced break away.

Due to the German Bank Holiday, I waited till today to get on The DAX and it paid off nicely, with two smooth Wick-Zone trades off of both the 06:00 bar and the 06:00 - 08:00 block range.

[LeMercenaire]

The DAX is now sitting at a very watchable level on the H1/H4 time-frames.

I'd be favouring a short move at some point. Could be big.

[LeMercenaire]

Still hanging around...

DAX - DAILY

DAX-Daily11thOct17.png (18.71 KiB) Viewed 3397 times

[Pjort]

Hello LeMerc
I can fully see why you are thinking about shorting the DAX - but please elaborate your techniuqe on what is your steps - like 1,2,3 steps, before you put your possible shorttrade on the DAX...
Thanks in advance...
I guess It is about that it should break a the first trading hours 1 hours candle closing point?? After i first have made a high on the number 2 , 1 hour candle?
s**t this is super difficult to explain in writtens words...

[LeMercenaire]

Hello LeMerc
I can fully see why you are thinking about shorting the DAX - but please elaborate your techniuqe on what is your steps - like 1,2,3 steps, before you put your possible shorttrade on the DAX...
Thanks in advance...
I guess It is about that it should break a the first trading hours 1 hours candle closing point?? After i first have made a high on the number 2 , 1 hour candle?
s**t this is super difficult to explain in writtens words...

Hi Pjort,

I run two base moves on The DAX first thing in the morning (uk time). Both use the range. The first variant uses the single 06:00 - 07:00 candle...the second covers the double block formed by the 06:00 - 08:00 candles. I run these using Wick-Zone techniques, so basically I am trading a line.

Variant #1 tends to be smoother in its move, though you will pay more for running before the UK Open.

Variant #2 is completely bonkers in the way that it moves and is most certainly not for the faint of heart. It moves like a bronco with a burr under the saddle. Sometimes getting on is like trying to catch lightning in a bottle, however, the rewards are worth the drama.

Over the last six months or so, I have been layering Supply & Demand Zones on the charts and that has paid off handsomely. Now even more recently, in search of some sort of directional bias, I have experimented with the Schaff Indicator.

I will also, as the mood takes me, scalp down on the m5 / m1 level during high volume times. Micro-S+D Zones down there give incredibly precise entries (and this aspect can also be used on the original methods as well).

As for the chart posted and what's going on there, I was looking more toward basic PA on top of that S+D / Schaff info. On the H1 (or H4) tf, I would also look at any 1-2-3 entry - now this is not the 1-2-3 pattern you would know from Kreslik but an entry method used by my friend Too Slow.

[naskorb]

Hi Lem,
I have been following you for a long time and I'm in love with your trading style and logic behind it!
I see that you are using wick zone technique and direction from s/d zones + schaff indi.
One thing I can't understand in some trades is what kind of stop loss, or point for counter trade are you using when the wick is very small, for instance 2-3 pips. Are you using fixed minimal stop loss in this situation or you are strict all the time - at the exit of the wick zone. In my experience there is greater likelihood for whipping in such a small zones.

Regards
naskorb

[LeMercenaire]

Hi Lem,
I have been following you for a long time and I'm in love with your trading style and logic behind it!
I see that you are using wick zone technique and direction from s/d zones + schaff indi.
One thing I can't understand in some trades is what kind of stop loss, or point for counter trade are you using when the wick is very small, for instance 2-3 pips. Are you using fixed minimal stop loss in this situation or you are strict all the time - at the exit of the wick zone. In my experience there is greater likelihood for whipping in such a small zones.

Regards
naskorb

Hi naskorb and thank you for your kind words. Truly appreciated.

Sorry for the tardiness in replying - I am still in the process of rebuilding my trading set-up here and am limiting my trading and online time for now until I get that nailed down tight.

Overview:

I came from a fund background, running jumbo lot-size on long time frames. Trying to replicate that ''one move buys a Ferrari'' oomph when I went out on my own was an exercise in frustration and idiocy.

Finding Avery's methods via TooSlow blew my mind wide open and put me on the right road. I've never looked back...

See line...Trade line.

Anyway, getting down to the small print of what I do...

Some context:

My base comes from Wick-Zone. This you know. However I have adapted the trade-management to include counter-trading instead of fixed stops. (This option is not easily available to US-Based traders, without using multiple brokers however, so that's something to bear in mind).

On top of that, I readily admit that there is a level of ''gut'' involved when it comes to looking at a candle and knowing if it's one I want to get involved with.

So, having mentioned counter-trading, I should now say that it doesn't really matter whether I was using that or using a fixed stop when it comes down to actually answering your question.

The DAX is a very particular kind of beast. As noted in an earlier post, I trade it over two slots in the morning (uk time)...the single 06:00 - 07:00 candle and the 2hr block formed by the 06:00 - 08:00 candles. However, those two set-ups tend to perform in different ways. The first usually makes up its mind right out of the gate and off it goes. It may move fast but it doesn't try to throw you off. However, the second is generally, to put it bluntly, as mad as a box of frogs. It can - and will - do anything it can to fake you out on any given day. It will not only try to run you over and kill you - it will then put it in reverse and drive over you backwards while you lie there bleeding, just for fun. It will also do all of this at the speed of light. Knowing this, helps you to figure out where your line-in-the-sand needs to be.

I set up on the H1 but the key is to drop to the m5 or m1 to enter and exit. I don't use just the WZ to set those lines-in-the-sand I mentioned...I use the micro S+D Zones down there as well. On top of that, I will overlay the Daily WZ, including the S+D covering the higher time-frames. If I finally add a directional bias to this set-up by using the Schaff, then I feel I will know pretty well where I need to counter (or stop if you must) should price break those multiple points of resistance in the opposite direction from my original trade entry.

At its most basic level - Entry using WZ, Exit using my magic potion of lines.

Additionally, if I have everything set up and ready to go and I drop down to get hunkered down for my entry and I see everything lining up and ready to blow a minute or two early, I will go in on that momentum, giving myself an additional cushion before the trade has even ''officially'' triggered.

I hope that goes at least a little way towards answering your question. Feel free to follow up if you wish.

[naskorb]

Hi Lem,
Thanks for your precious time and efforts answering me! You are not only prof trader but a professional teacher. Hope some day I can trade and help like you. I liked your trading style because of the logic of placing every line.
I thing that one of the important things is your relative small risk and high hit rate compared to billytt much much higher risk in H4 BO trades. Sometimes its very difficult for me to cope with this losing trades-several days with or without retrace trades.
I can't understand the purpose of the counter trades and the difference from the simple stops. Is this only psychologically easier not to see the loosing trade in your account, when the trade is in limbo, until you compensate for it with several or one bigger winning trade?
Do you increase the size of the next trade after you have trade in limbo, so if you make 5 pips you can compensate for the looser and make +5%?
I'm not in a hurry, you can reply when you find some free time after fixing your trading system.

Kind Regards
naskorb