Comments on: Multiple Convergences Mark Intraday Low Lesson http://blog.afraidtotrade.com/multiple-convergences-mark-intraday-low-lesson/ Helping traders overcome fears and emotions in trading Thu, 09 Feb 2012 14:53:15 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Corey Rosenbloom, CMT http://blog.afraidtotrade.com/multiple-convergences-mark-intraday-low-lesson/comment-page-1/#comment-213054 Corey Rosenbloom, CMT Sun, 24 May 2009 01:29:51 +0000 http://blog.afraidtotrade.com/?p=3976#comment-213054 Agreed - I do most of my trading in the morning session and really only trade the afternoon session if there's a trend day but there can be some pretty stellar moves into the close on many days. I tend to do much better in the early morning session. Agreed – I do most of my trading in the morning session and really only trade the afternoon session if there's a trend day but there can be some pretty stellar moves into the close on many days. I tend to do much better in the early morning session.

]]> By: Corey Rosenbloom, CMT http://blog.afraidtotrade.com/multiple-convergences-mark-intraday-low-lesson/comment-page-1/#comment-213056 Corey Rosenbloom, CMT Sun, 24 May 2009 01:28:08 +0000 http://blog.afraidtotrade.com/?p=3976#comment-213056 This is part of the art of trading - knowing the rules and knowing when to break them. Even if you completely ignored the TICK & 3/10 divergences, you would have been ok if short provided you got in early enough in the day (exiting at close with profit) or took a stop-loss when price broke above the 50 (triggering exit on trend day anyway).<br><br>But at a minimum, if you saw these developments, it was probably best to go ahead and cover your short positions and not hold through an expected retracements - divergences only 'forecast' retracements, not reversals unless confirmed by other structures (this one was, like the Elliott 5 wave fractals). This is part of the art of trading – knowing the rules and knowing when to break them. Even if you completely ignored the TICK & 3/10 divergences, you would have been ok if short provided you got in early enough in the day (exiting at close with profit) or took a stop-loss when price broke above the 50 (triggering exit on trend day anyway).

But at a minimum, if you saw these developments, it was probably best to go ahead and cover your short positions and not hold through an expected retracements – divergences only 'forecast' retracements, not reversals unless confirmed by other structures (this one was, like the Elliott 5 wave fractals).

]]> By: Corey Rosenbloom, CMT http://blog.afraidtotrade.com/multiple-convergences-mark-intraday-low-lesson/comment-page-1/#comment-213058 Corey Rosenbloom, CMT Sun, 24 May 2009 01:23:11 +0000 http://blog.afraidtotrade.com/?p=3976#comment-213058 Hey Dominick,<br><br>It depends on your trading strategy - if you were aggressive, you probably entered right at the doji (remember these are 5-minute bars so there's time to make a decision) or if you were conservative (needing more information) you would have entered after the engulfing completed.<br><br>Personally, I prefer to have my stop as close as possible and so I would recommend entering as soon as the doji formed and placing in a tight stop - but not too tight - my weakness is always stops that are too tight.<br><br>You too! Hey Dominick,

It depends on your trading strategy – if you were aggressive, you probably entered right at the doji (remember these are 5-minute bars so there's time to make a decision) or if you were conservative (needing more information) you would have entered after the engulfing completed.

Personally, I prefer to have my stop as close as possible and so I would recommend entering as soon as the doji formed and placing in a tight stop – but not too tight – my weakness is always stops that are too tight.

You too!

]]> By: Corey Rosenbloom, CMT http://blog.afraidtotrade.com/multiple-convergences-mark-intraday-low-lesson/comment-page-1/#comment-213060 Corey Rosenbloom, CMT Sun, 24 May 2009 01:20:55 +0000 http://blog.afraidtotrade.com/?p=3976#comment-213060 It was! I missed seeing that.<br><br>Small pattern, but valid nonetheless.<br><br>The more we can see as it's happening, the better! It was! I missed seeing that.

Small pattern, but valid nonetheless.

The more we can see as it's happening, the better!

]]> By: ils http://blog.afraidtotrade.com/multiple-convergences-mark-intraday-low-lesson/comment-page-1/#comment-213053 ils Sun, 24 May 2009 01:15:21 +0000 http://blog.afraidtotrade.com/?p=3976#comment-213053 actually i was wrong on the time frame- the bulk of the reversal move happened in the last half hour which is still fairly late imho actually i was wrong on the time frame- the bulk of the reversal move happened in the last half hour which is still fairly late imho

]]> By: ils http://blog.afraidtotrade.com/multiple-convergences-mark-intraday-low-lesson/comment-page-1/#comment-213055 ils Sun, 24 May 2009 01:13:03 +0000 http://blog.afraidtotrade.com/?p=3976#comment-213055 corey, i appreciate your analysis. I am having trouble reconciling your advice to ignore tick and momentum divergences on trend days with your advice to put on a reversal trade based on them, in what was, until that point, behaving like a trend day Please clarify. thanks <br><br>I had noticed them as well and was actually going to get long but it was so late in the day i didnt expect a real reversal in the last 20 minutes. corey, i appreciate your analysis. I am having trouble reconciling your advice to ignore tick and momentum divergences on trend days with your advice to put on a reversal trade based on them, in what was, until that point, behaving like a trend day Please clarify. thanks

I had noticed them as well and was actually going to get long but it was so late in the day i didnt expect a real reversal in the last 20 minutes.

]]> By: Dominick http://blog.afraidtotrade.com/multiple-convergences-mark-intraday-low-lesson/comment-page-1/#comment-213057 Dominick Sat, 23 May 2009 22:44:05 +0000 http://blog.afraidtotrade.com/?p=3976#comment-213057 Thanks Corey, I was looking for something like this. One question, where would you have made the "ideal" entry? You mentioned the "type of bullish engulfing candle" so does this mean you would not have entered immediatly after the highlighted doji? Thanks again and have a great memorial day. Thanks Corey, I was looking for something like this. One question, where would you have made the “ideal” entry? You mentioned the “type of bullish engulfing candle” so does this mean you would not have entered immediatly after the highlighted doji? Thanks again and have a great memorial day.

]]> By: duketrader08 http://blog.afraidtotrade.com/multiple-convergences-mark-intraday-low-lesson/comment-page-1/#comment-213059 duketrader08 Sat, 23 May 2009 21:37:54 +0000 http://blog.afraidtotrade.com/?p=3976#comment-213059 Could that be called an inverted head and shoulders candlestick pattern at the low, as well? Could that be called an inverted head and shoulders candlestick pattern at the low, as well?

]]> By: Corey Rosenbloom, CMT http://blog.afraidtotrade.com/multiple-convergences-mark-intraday-low-lesson/comment-page-1/#comment-209340 Corey Rosenbloom, CMT Sat, 23 May 2009 20:29:51 +0000 http://blog.afraidtotrade.com/?p=3976#comment-209340 Agreed - I do most of my trading in the morning session and really only trade the afternoon session if there's a trend day but there can be some pretty stellar moves into the close on many days. I tend to do much better in the early morning session. Agreed – I do most of my trading in the morning session and really only trade the afternoon session if there's a trend day but there can be some pretty stellar moves into the close on many days. I tend to do much better in the early morning session.

]]> By: Corey Rosenbloom, CMT http://blog.afraidtotrade.com/multiple-convergences-mark-intraday-low-lesson/comment-page-1/#comment-209339 Corey Rosenbloom, CMT Sat, 23 May 2009 20:28:08 +0000 http://blog.afraidtotrade.com/?p=3976#comment-209339 This is part of the art of trading - knowing the rules and knowing when to break them. Even if you completely ignored the TICK & 3/10 divergences, you would have been ok if short provided you got in early enough in the day (exiting at close with profit) or took a stop-loss when price broke above the 50 (triggering exit on trend day anyway).<br><br>But at a minimum, if you saw these developments, it was probably best to go ahead and cover your short positions and not hold through an expected retracements - divergences only 'forecast' retracements, not reversals unless confirmed by other structures (this one was, like the Elliott 5 wave fractals). This is part of the art of trading – knowing the rules and knowing when to break them. Even if you completely ignored the TICK & 3/10 divergences, you would have been ok if short provided you got in early enough in the day (exiting at close with profit) or took a stop-loss when price broke above the 50 (triggering exit on trend day anyway).

But at a minimum, if you saw these developments, it was probably best to go ahead and cover your short positions and not hold through an expected retracements – divergences only 'forecast' retracements, not reversals unless confirmed by other structures (this one was, like the Elliott 5 wave fractals).

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