Theory Question - Intraday Trading

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Trader Question
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Joined: Thu Oct 09, 2008 7:31 am

Theory Question - Intraday Trading

Post by Trader Question »

My question doesn't have so much to do with a particular chart - it's a theory question with "practical intraday trading application".

When do you decide mentally that you have a "Yes or No pattern" and accordingly know that the "flow" has changed direction and you should take a position? Especially on an intraday basis trading the S&P Future contract.

In other words at what point does your mind or P&L tool - "trigger" - and you mentally say "OK the flow has changed direction"

I've listed below my list of "P&L flow changing triggers" When these events happen - I Mentally say "the flowschanged" and I'm taking a position - be it - long or short. The one I'm questioning is the first one.

I've arbitrarily used a rule from experience that if the price fails 2 time to reach a P&L tool then the flow has changed direction.
Flow Monitoring
Items to monitor to tell if Flow has changed and you should take a position - Long or short
1-When price does not reach a P&L tool target - if it fails 2 time to reach it flow has changed
2-Move above below PLDot
3-Move back inside of ET or EB (especially after an Exhaust)
4-Compare Price Bar - current vs. prior - for Higher or lower Hi's & Lo's
5-The Price Bar "close" is in the top or bottom 25% of Price Bar
6-Determine if an increase/decrease in number of either support/resistance P&L tools from prior price bar
7-Determine if Price Bar is shorter than previous Price Bar
8-Determine if Price opens or moves above or below the prior days close

D.M.
pldot
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Posts: 779
Joined: Sun Apr 27, 2008 10:52 pm

Re: Theory Question - Intraday Trading

Post by pldot »

Yes/No pattern question:===the issue is not a P&L tool per se but point of significant HTP energy

Mental decision to go short:===this will make you late and wrong often in my opinion but then I don't monitor these lowest timeframes at all. In my opinion they will trade you as opposed to you trading the market.

1or 5 min chart:=== too short a time frame in my view, but whatever floats your boat

The 8 items to monitor:===these are elements.... except the first I would think... which is something else useful but perhaps not flow.
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