Wednesday, March 9, 2011

ES trade

I just placed a OCO order in on the ES. I'm playing for a bounce off support to fill the gap. I bought at 1302, limit exit at 1314, stop loss at 1299.50. Risk/reward is 12:2.5 or 4.8:1


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  1. I was stopped out for a loss an hour later.

  2. Jason, I enjoy reading your blog and posts. In some respects, you and I are on a similar journey via different paths.

    I don't know why I keyed on this trade when quickly reading my blog roll this afternoon, but something didn't seem right about your trendlines. I've noticed similar occurrences on my charts with TOS and as a result I have to be extremely careful when using them. Let me explain:

    Your first chart shows a 5min period with afterhours included. Your second is a daily, i assume I assume with afterhours. Your trendline on the 5min appears to be drawn from the DAILY points (as if you drew it in on the daily chart, and then switched to 5min). If you redraw that support trendline using points on the 5min chart only, you would have seen it is a few points higher than the one you based your trade off of.

    The end result may have been the same, but if you weren't already aware of this abnormality with TOS charts it might save you some cash in the future. For some reason, TOS charts does not do a good job with consistent trendlines across timeframes. You pretty much have to draw a separate timeline for each different time period chart. Especially when afterhours are concerned.

    Also, on the same topic, trendlines frequently "shift" if you do not use a lookback period long enough. For example, you draw in a trendline on an hourly chart. Over time, that chart's display period shifts forward so the original starting point of the trendline is no longer on the chart. Sometimes this causes the trendline to display improperly, although you would not know it unless you went under "Style > Intraday > X Days > Time Period" so that the data included the original start of trendline.

  3. Chris, you are correct. I drew the lines on a daily and then changed the setting to 5d 5m. After reading your post I backed out the time frame to hourly and I see what you're talking about. It does change the support line up about 1 full point according to what I'm now looking at.

    On this particular trade I was really playing for the gap to fill and being off by a point wouldn't have changed this trade for me. But absolutely I have noticed what you're saying about different time frames not exactly matching up on the TOS charts. Thank you for your input, I appreciate it. Send me an email if you want to talk further about similar journeys but different paths, would love to hear about it.