Trending dojis (b35-41, b61-66) are mini-trends. They are small trend moves on a smaller timeframe and a large trend bar on a larger timeframe. When you see trending dojis, the right thing to do is enter with the trend on a pullback bar.
Obviously, most traders did exactly that since the low of b43 and b68 were bought without hesitation for an excellent run each. If you are queasy about buying the close of a bear trend bar on limit, its perfectly fine to wait and see of the next bar is bullish and buy its close or above its high if its not too large.
Cad, I sat in on the al brooks live trading room yesterday which was a great experience. I love this style of pa trading. He seems to have a good idea where price is going next. Do you use his room? Do you ever consider oco orders when expecting a move but not sure of direction? Thanks, Paul
ReplyDeletePaul, Glad you like the live trading room. I was a former member and found it very educational.
ReplyDeleteI bracket inside bars after breakout bars but they are not OCO. The order that does not trigger acts as a stop on the order that does.
I'm using openecry for demo trading and like the charting but the orders side is complicated and clumsy. Can you make any recommendations charts/brokers. Thanks
ReplyDeleteHey Cad,
ReplyDeleteHaven't talked with you in a while since I banned myself from the chat room. Glad to see everything is going well with you. Great information as always. I would like to say thanks for answering questions for me in my early days in trading when I was a rookie, you helped me get my footing.
I really like the bar type discussions such as the "inside bar" post earlier, please continue with those.
Paul, sorry but I don't endorse brokers.
ReplyDeleteJason, you are welcome and your interests are noted.
Cadaver,
ReplyDeleteGood post again.
1. Curious why you didnt short b26 low or the bar 30 lows (A2 and A22) for continuation?
2. Till b15 we had a strong down trend and we pulled back to 20 EMA and resumed the downtrend. If I had taken the short near 26 / 30, I would be looking for a LL based on trend continuation. Curious to see how your biase went from Short to long to take the Long at b35?
I am comparing this day with the day 2011-07-27
http://cadavertrading.blogspot.com/2011/07/hard-trend-identification-and-trading.html#comments
In the chart for 2011-07-27 short below b25 is similiar to the short near 26 / 30 in the chart 2011-08-03. Curious to see what makes you decide the bias to stay short as in 2011-07-27 versus going long on a pullback in 2011-08-03 even though we have a clear W on the reveral on 2011-07-27.
Thx,