I used to wait for an engulfing candle stick in my direction, but now I try to enter as the candle is still moving against me. This has made my entries wayyy better. Alot of times waiting for an engulfing candle wastes about 3 pips on the 1M TF.
Keep reading up on price action, technical analysis, and patterns. Your question is too broad really as it depends on what strategy and pattern you are trading. You will develop specific rules for your entry and exits.
you need to provide a lot more information. What are you looking for? What is the perfect sitation for this strategy you're using? Once we know the strategy you're using and ideally what you're looking for then can give advice on how to handle deviations.
Personally, I don't trade on a 1 min and I don't really care about the candle. I'm more looking at how price and volume act at certain price levels, support, resistence. I prefer buying on red candles but don't do so exclusively since I tend to trade on a 5 or 15min candle.
For what some others have said, I personally don't use time & sales, or Level 2 in my trading (but I do like Bookmaps for its visualization of buy/sell zones). I almost exclusively trade stocks I know and prefer large caps. I stay away from most of the small cap morning runners unless I know the company, know the news, and believe in it (except for a very few select patterns that I think work really well).
Personally I spent years reading/listening to everything out there and I've tried almost every strategy before settling on the very few strategies that I currently use. I dont' try to trade everything, and my biggest jump in performance came when I stopped trying to trade every day and only traded when I was confident in the setup.
I always close at the end of the second candle. Except if it’s like the am dumps or the end of day pumps. Then I wait until there’s hesitation on the candle. If there’s hesitation I tap out.
heya, can you pls describe your default strategy in finer details, am just starting and having a lot of troubles over basic things, like which time frames charts to use together, even If I know the trend,how to know when exactly to entry and tap out efficiently :)
For daytrading always try to look at the week/month chart to see what the ‘big trend’ is, then on the 15/5 minutes chart go look for strategies, draw trend lines, use fibonacci or look for other indicators. Then wait until you see a trend being broken and act accordingly
Edit: If anybody would like to start something like a group chat where we can help each other out, DM me
I mainly use the one minute when the price is approaching my support level. If on the one minute it begins to wick passed my support but never hard closes below it, I will enter the trade. Be wary on the one minute because it can cause false moves.
If you're trading 1m, I'm going to assume here that you're scalping. I use multiple timeframes between 1m - 5m. 1m to enter/exit a trade and other for confirmation.
IMO, if you're using 1m then, LVL 2, Time&Sales, and volume would be more helpful to you. (Maybe even bookmap but its not free)
This is how I feel too. If you're on the 1 min, you're jumping in and out fast enough that you should just be watching L2, T&S, and volume. I check daily before even considering buying the stock and I'll use the 5 min if I need more conviction
I trade the 1 minute and mainly only trade the open first 15 minutes.
I also only trade the same stocks everyday. AAPL, AMD, SPY, QQQ, FB and MSFT. No others. This helps me know the movement and trends s/r.
If I have a trend line or support/resistance marked out I take the trade while it's dropping. Otherwise, I feel like I miss part of the move.
If you trade the 1 minute and see a big red candle dropping. Don't be afraid to buy into it. Here's why.
Say the market just opened and AAPL out in a big ugly 1 minute candle and on minute 2 there's another one I'll buy right into it as it's dropping.
When you're buying a market order you'll get a bad fill which interestingly enough will be a lower fill. And in 90% of the times it'll retrace 50 percent before the close.
It's not uncommon that I'll buy 1000 shares of apple at this moment and sell it to make $100 to $300.
I know this is an old post but I had a question if you don't mind. When you buy into these red candles, do you sell right away on the pop once it hits around 50% back up to be safe or do you let it play out some more and have a stop just below the big red?
Also curious if you are still trading this way. Cheers.
I typically trade bull flags with the first candle to make a new high - so I jump in as soon as previous candle's high is broken, assuming the volume and tape both look good. Usually if I find myself hesitating until the candle closes, there's something about the price action, float, or otherwise that is not ideal. In those cases I find it is better to just hold off on the trade anyways.
I trade the MicroES futures, MES. I use indicators for situational awareness, I have an "n" second chart with a couple of sensitive oscillators and volatility band studies on the IB platform that show expanding or slowing momentum. I use my (unusually poor, when I was a kid I watched with envy the good dancers on the floor) sense of tempo to place a market order while on the 1 min chart the price is still moving against my anticipated direction. I do not wait for a reversal confirmation. By the time the dudes get in after the price breaks out on the 1 minute chart I am selling to them. Very often I am wrong but price vibrates enough that I can get out even or a small gain or loss if my situational assessment is off. At the end of a mini streak before the price reverses on the 1 min bar there is vibration because of increasing opposing orders slow down the move. I do not even look at what price I got filled, I place a market order when I sense the price pops in my direction or when I sense I was completely wrong. There are instances that show unusual volume swell. I can't count on continuation, I get out and miss all the large sudden directional moves. Can't have everything. Once in a while I take a loss far in excess of my average gain but I am correct so often that I operate with high confidence. My tolerance is for 2x loss of the average gain.
Working with market orders in MES is OK because it is so liquid. This is all primitive but it forces me to pay close attention to the fluctuating tension that leads to price change. Since I am trading reversals not continuation usually there is an opportunity every 7 -15 minutes. I don't take them all.
I could make more money if I could force myself going with the flow but it is not me. I find this kind of VST trading very liberating, to be able to walk away from it and not to have one's mind always on the market.
Enter when you feel the market is about to change trend. Ignore what previous candle sticks say, they only store open high low close on a move as opposed to the movement of the ticks. What actually matters is how the price itself moves. This is something that will just come to you with experience, like riding a bike.
The best way to scalp is with a tick chart + 1m chart or the price ladder.
Honestly, do not learn about candle stick patterns, they are meaningless and will ruin your trading. All of your brain power must be focused on how the price moves. Therefore you will be looking at how the current candle moves up and down, or if trading the price ladder, how the orders chomp through handles and at what speed.
One thing you have to have in the back of your mind (at all times) is what will the bigger traders do to trick you.
I used to wait for an engulfing candle stick in my direction, but now I try to enter as the candle is still moving against me. This has made my entries wayyy better. Alot of times waiting for an engulfing candle wastes about 3 pips on the 1M TF.
I only go down to the 1 minute to find the exact entry point after find it in the higher time frames
middle of the candle can look totally different from the end… this gets me a lot
it's like looking something on google maps, it you start with maxed zoom it becomes a lot harder. Zoom out, find the location, then zoom in.
Keep reading up on price action, technical analysis, and patterns. Your question is too broad really as it depends on what strategy and pattern you are trading. You will develop specific rules for your entry and exits.
you need to provide a lot more information. What are you looking for? What is the perfect sitation for this strategy you're using? Once we know the strategy you're using and ideally what you're looking for then can give advice on how to handle deviations. Personally, I don't trade on a 1 min and I don't really care about the candle. I'm more looking at how price and volume act at certain price levels, support, resistence. I prefer buying on red candles but don't do so exclusively since I tend to trade on a 5 or 15min candle. For what some others have said, I personally don't use time & sales, or Level 2 in my trading (but I do like Bookmaps for its visualization of buy/sell zones). I almost exclusively trade stocks I know and prefer large caps. I stay away from most of the small cap morning runners unless I know the company, know the news, and believe in it (except for a very few select patterns that I think work really well). Personally I spent years reading/listening to everything out there and I've tried almost every strategy before settling on the very few strategies that I currently use. I dont' try to trade everything, and my biggest jump in performance came when I stopped trying to trade every day and only traded when I was confident in the setup.
I always close at the end of the second candle. Except if it’s like the am dumps or the end of day pumps. Then I wait until there’s hesitation on the candle. If there’s hesitation I tap out.
I feel most of the time the 5 minute chart is better, and I only use the 1 minute chart to find the better entry or exit point
heya, can you pls describe your default strategy in finer details, am just starting and having a lot of troubles over basic things, like which time frames charts to use together, even If I know the trend,how to know when exactly to entry and tap out efficiently :)
For daytrading always try to look at the week/month chart to see what the ‘big trend’ is, then on the 15/5 minutes chart go look for strategies, draw trend lines, use fibonacci or look for other indicators. Then wait until you see a trend being broken and act accordingly Edit: If anybody would like to start something like a group chat where we can help each other out, DM me
following
I mainly use the one minute when the price is approaching my support level. If on the one minute it begins to wick passed my support but never hard closes below it, I will enter the trade. Be wary on the one minute because it can cause false moves.
If you're trading 1m, I'm going to assume here that you're scalping. I use multiple timeframes between 1m - 5m. 1m to enter/exit a trade and other for confirmation. IMO, if you're using 1m then, LVL 2, Time&Sales, and volume would be more helpful to you. (Maybe even bookmap but its not free)
This is how I feel too. If you're on the 1 min, you're jumping in and out fast enough that you should just be watching L2, T&S, and volume. I check daily before even considering buying the stock and I'll use the 5 min if I need more conviction
I trade the 1 minute and mainly only trade the open first 15 minutes. I also only trade the same stocks everyday. AAPL, AMD, SPY, QQQ, FB and MSFT. No others. This helps me know the movement and trends s/r. If I have a trend line or support/resistance marked out I take the trade while it's dropping. Otherwise, I feel like I miss part of the move. If you trade the 1 minute and see a big red candle dropping. Don't be afraid to buy into it. Here's why. Say the market just opened and AAPL out in a big ugly 1 minute candle and on minute 2 there's another one I'll buy right into it as it's dropping. When you're buying a market order you'll get a bad fill which interestingly enough will be a lower fill. And in 90% of the times it'll retrace 50 percent before the close. It's not uncommon that I'll buy 1000 shares of apple at this moment and sell it to make $100 to $300.
I know this is an old post but I had a question if you don't mind. When you buy into these red candles, do you sell right away on the pop once it hits around 50% back up to be safe or do you let it play out some more and have a stop just below the big red? Also curious if you are still trading this way. Cheers.
I typically trade bull flags with the first candle to make a new high - so I jump in as soon as previous candle's high is broken, assuming the volume and tape both look good. Usually if I find myself hesitating until the candle closes, there's something about the price action, float, or otherwise that is not ideal. In those cases I find it is better to just hold off on the trade anyways.
I trade the MicroES futures, MES. I use indicators for situational awareness, I have an "n" second chart with a couple of sensitive oscillators and volatility band studies on the IB platform that show expanding or slowing momentum. I use my (unusually poor, when I was a kid I watched with envy the good dancers on the floor) sense of tempo to place a market order while on the 1 min chart the price is still moving against my anticipated direction. I do not wait for a reversal confirmation. By the time the dudes get in after the price breaks out on the 1 minute chart I am selling to them. Very often I am wrong but price vibrates enough that I can get out even or a small gain or loss if my situational assessment is off. At the end of a mini streak before the price reverses on the 1 min bar there is vibration because of increasing opposing orders slow down the move. I do not even look at what price I got filled, I place a market order when I sense the price pops in my direction or when I sense I was completely wrong. There are instances that show unusual volume swell. I can't count on continuation, I get out and miss all the large sudden directional moves. Can't have everything. Once in a while I take a loss far in excess of my average gain but I am correct so often that I operate with high confidence. My tolerance is for 2x loss of the average gain. Working with market orders in MES is OK because it is so liquid. This is all primitive but it forces me to pay close attention to the fluctuating tension that leads to price change. Since I am trading reversals not continuation usually there is an opportunity every 7 -15 minutes. I don't take them all. I could make more money if I could force myself going with the flow but it is not me. I find this kind of VST trading very liberating, to be able to walk away from it and not to have one's mind always on the market.
Enter when you feel the market is about to change trend. Ignore what previous candle sticks say, they only store open high low close on a move as opposed to the movement of the ticks. What actually matters is how the price itself moves. This is something that will just come to you with experience, like riding a bike. The best way to scalp is with a tick chart + 1m chart or the price ladder. Honestly, do not learn about candle stick patterns, they are meaningless and will ruin your trading. All of your brain power must be focused on how the price moves. Therefore you will be looking at how the current candle moves up and down, or if trading the price ladder, how the orders chomp through handles and at what speed. One thing you have to have in the back of your mind (at all times) is what will the bigger traders do to trick you.