2min ES today (oct 28)
Posted: Wed Oct 28, 2020 6:47 pm
Watching the ES today as I'm working on broker stuff and thought I'd share. Usually, people trading 2min charts seem like they want to take 20 trades. I sort of like the opposite approach, basically looking for one good trade and then being done for the day. Now that we have insane volatility, you can trade a 2min chart like you used to be able to trade an hourly...
Anyway, check it out:
Starting at the bottom and working my way up:
Astotrader Energy: this one is a forecast where to expect a change in trend. We know it ahead of time, which means you can ignore the rest of the day and just focus in this one area. Usually you get one or two in a day. Basically, just look for the bump. Today, that was the green rectangle. Since we're dropping into there, that makes this a good place to look for a low.
Ultrasmooth momentum: this is the pink line. I think simple divergence signals work best with this one. I've drawn a couple out in white. Higher lows on momentum with lower lows on the market is a bullish divergence. That's a buy signal setting up at the right time.
9-5 Count: See the gold "5" right there a few bars before the low? That's another buy signal.
Fractal Trend Index: at the top. Big peaks happen when the current trend runs out of steam. Pretty reliable, especially in conjunction with momentum and 9-5.
Put it all together, and you get a pretty clean buy signal there at the 10:30 low. Buying the bottom is risky, and it's better to get in on the first small pullback. (Bertha traders know all about this.) I've put a light blue arrow where that happened. The crazy thing is that the move from 10:30 to the first high (by the red "9") is over 10 points! Back when I started, people used to scalp for a couple ticks. Now we can do it for 10 points! Anyway, on a 2min chart, that's about as far as technical swings go, so that would be the first profit take, at the minimum. Twenty years later, and these technical tools are just as great as they were back in 2000.
Earik
Anyway, check it out:
Starting at the bottom and working my way up:
Astotrader Energy: this one is a forecast where to expect a change in trend. We know it ahead of time, which means you can ignore the rest of the day and just focus in this one area. Usually you get one or two in a day. Basically, just look for the bump. Today, that was the green rectangle. Since we're dropping into there, that makes this a good place to look for a low.
Ultrasmooth momentum: this is the pink line. I think simple divergence signals work best with this one. I've drawn a couple out in white. Higher lows on momentum with lower lows on the market is a bullish divergence. That's a buy signal setting up at the right time.
9-5 Count: See the gold "5" right there a few bars before the low? That's another buy signal.
Fractal Trend Index: at the top. Big peaks happen when the current trend runs out of steam. Pretty reliable, especially in conjunction with momentum and 9-5.
Put it all together, and you get a pretty clean buy signal there at the 10:30 low. Buying the bottom is risky, and it's better to get in on the first small pullback. (Bertha traders know all about this.) I've put a light blue arrow where that happened. The crazy thing is that the move from 10:30 to the first high (by the red "9") is over 10 points! Back when I started, people used to scalp for a couple ticks. Now we can do it for 10 points! Anyway, on a 2min chart, that's about as far as technical swings go, so that would be the first profit take, at the minimum. Twenty years later, and these technical tools are just as great as they were back in 2000.
Earik