A week of day trading

What follows is an unedited transcription of a selection of the week’s real-time trades as relayed on Skype between Nick, James and Buzz.

The idea is to provide a feel for the day trade decisions as they occur.

The abbreviations used include ema (exponential moving average, set at 25), pb (patten break), pbp (pattern break pullback), pbc (pattern break combi), pr (pullback reversal) and shs (shoulder head shoulder pattern). Moreover, comments are about the currency markets EUR/USD (Fibre) and AUD/USD (Oz).

The strategy is from Bob Volman. A page will appear on Slow Trader in the next few weeks providing comprehensive notes from Bob’s book titled ‘Day trading tight stops’.

A word of caution, those using some of the trades shown below as examples should note that many are too aggressive for the intermediate trader. Start slow with the obvious (cautious trades) and move up as experience builds.

(Monday 28/1/2019)

Nick, 08:58
Looks like a bit of volume in the Fibre this morning. Spotted a good trade at 7:35 for a pr

Buzz 08:59
Well done with that. I had a limit entry set but the pb missed me by a fraction.
Did you come out at the double zero or hold for a swing?

Nick, 09:03
I didn’t take it as I wasn’t convinced at the time there was much volume. I just marked it on my charts to observe where it went. It went for the full 20 pip though.

Buzz 09:05
Okay, nice. The 07:05 was quite strong but I was happy to set a limit entry. I was too ambitious with the price I wanted.

Have gone for a slightly different look. Only two markets now (Fibre and Oz). Sensibly! Thanks, James. But I’m also looking at employing the ‘wide’ stop as well as the (Bob) tight stop strategy; this is only possible because of the auto qty. (A software on prorealtrade)

James, 09:10
Looks good. 🙂

Buzz 09:48
An aggressive entry short in the Fibre. Signal bar (9:15) with a long wick. I considered this as a pb on the resistance horizontal drawn or even as a pr – took the ‘out’ at breakeven.

James, 09:51

I took the same trade but on the Oz.

Came out after 3 consecutive bull bars.

Round number doesn’t help on the Oz. (Round number is the magnetic pull of the 7,200 price level)

Buzz 09:53

That was a better entry proposition. I missed it so put my attention to the Fibre.
Are you referring to the pull of the 7,200?
Seems like a good out. Possible higher low (Oz)

James, 09:58
It was! although I would have accepted a pull-back to exactly where it has got to as it is a ceiling test with the low of the 09.10 bar. Just did it in too many consecutive bars for me.

Yes the pull of the 00 level.

Buzz 13:45 (no chart snap as too busy at the time to take one)
I liked the Fibre short on bar 12:50 (signal) and 12:55 entry. Immediately went against me and to within a pip of stop. I am looking for best out before the ECB, Draghi in 15 mins.

James, 13:46
Can’t ask for more than the EMA I think.

Although the bulls had 3 up.

reasonable signal short at 13.30

Buzz 13:47
Tricky, but thanks, I exited the trade at the ema (as James suggested) for a small loss – fortunate though.

James, 13:47
Yes it has been a tricky hour.

I took it long off the 13.05 combi.

Didn’t get the break-out, quick out.

Then immediately shorted the Oz.

Buzz 13:49
When it looked like it wasn’t going to break the double top. Well done.

James, 13:49

Took 2 attempts shorting the Oz.

Bounced off the bottom. I think that second short was high probability off the EMA despite a weakish signal bar

Good out on the Fibre (referring to Buzz’s last trade).

James, 14:25

Caught the break. Came off at what I consider a reasonable support.

Don’t mind trading the Oz when Draghi is on. What do you guys think?

Buzz 14:32
Linked (Fibre and Oz),I’d say, to a certain degree anyway. But I would probably trade a good signal.

James, 15:03
Good time for a cuppa. Not sure how long Draghi is on for. And then it’s Carney!

Buzz 15:07
Not sure, difficult to find a link. I reckon the chart will tell us when it’s over.

(Tuesday 29/1/2019)
Buzz, 09:10
A contrarian Oz scalp. Not a ‘Bob’ strategy. I was happy with the three pushes up and the possible exhaustion before entry. The risk was 1.8 pips but a high probability of being hit. It was a comfortable 4 to 1 return in the end.

Took the eight pip scalp.
Buzz 16:39
Entered a pbc long. Somewhat concerned about this take as clearly counter-trend. However, it was coming from a higher low (at least the close of the bars were higher). I waited until the entry bar had cleared the combi then set a limit long; this got taken but the next, a little pullback, so I exited. It then, of course, went exactly 20 pips.

(Wednesday 30/1/2019)

James, 09:24
Haven’t found good market conditions yet today.

Buzz 09:25
Oz nestled on the double zero and Fibre waiting to do something.

James, 09:25
Exactly.

Buzz 09:40
Moving the support line down.

Buzz 09:47
A reasonable pbc on the Fibre. Maybe too early to go long?

James, 09:53
Only problem is it’s counter-trend and still sitting under the EMA

But it does have a shs pattern.

Buzz 09:54
Yes, I let it go

James, 09:58

Buzz 10:58
One issue with a limit entry: missed opportunities. (The trade below did not take).

Nick, 11:02
I’ve decided not to use it (limit entries) on that bases. I would happily use it if it were an on stop entry.

Buzz 11:03
That’s a very good point.
Buzz 11:13
I’ve had another go at the ‘Mantra‘ on slow trader if anyone wants to take a look. Thoughts.
Buzz 11:49
Took limit entry short once the signal bar was activated on a pb. the exit was one pip above the high.

James, 11:59
Small price to pay for a good opportunity with trend. A false break-out of horizontal support? Pull from the 50-level.

Buzz 13:01

Target achieved. Went for a resistance target from a limit entry short. pbp.
I manually executed the exit at 10.8 pips as price touched the target. I had not allowed for the half spread and it looked like it wouldn’t push past the support.

Had just taken a chilly eye-watering stomp along the beach. Good for clearing the head.
Non-farm news out soon.
A reminder. The 1st Friday of each month is the non-farm day. The build-up starts now, and with a few events tomorrow.
They are most certainly best avoided.

James, 13:14
Amazing trade! Well done. (Referrin to the trade above).

James, 13:28
Much simpler and precise. (refering to the new Mantra on slow trader)

I always have it open on the side. (Mantra)

Buzz 13:30

I was happy with my out. Notice how price went exactly to my measured support.

James, 13:36
That’s when you know you got it just right.

Thursday 31/1/2019

James, 08:01

Typical 8 o clockers turning the chart (Referring to the European market opening)

Fed interest rate stayed the same yesterday at 19.00

Buzz 08:03
Thanks. Yes, some ‘good’ movement in the Fibre but no setups for me.

James, 08:25

Was expecting a break-out.

Buzz 08:27
Yes, I had that marked. Maybe too far from the ema for me.

James, 08:28
Yes I thought so too, wasn’t going to hold if it didn’t look like it was going to break-out. Although that bear closed on it’s low pip, so it still might.

08:29
It looks strong. You could be ‘right’. Sorry, will stop highlighting right and good.

James, 08:29
haha

Buzz 08:49
A lot of financial news to work around today.

James, 08:51
Yes there is.

Tricky scenario on the Oz.

EMA and trend but a weak signal bar.

Buzz 08:53
Yes, had that line marked. Easy in hindsight but at the time I thought the 8:30 bear bar was too strong to take a ‘long’.

James, 08:54
Yes it is a reasonable bear bar, but maintained a higher low.

James, 11:23
Critical moment

Buzz 11:32
The slightly higher close of the 11:25 (Fibre) has kept me out for now.

James, 11:40
I waited as the bear signal bar was poor then took the long off the 11.25 close. No evidence of double pressure so I’m out.

Buzz 11:41
The long was aggressive but a good call. I think the power is still with the bears.

James, 11:41
Your out and my in were the same trade.

The seven consecutive bull bars persuaded me that the bears were done after three down. (three distinct moves represent what is known as a wedge pattern, often has a precise effect).

Buzz 11:43
Yes, they were. A very good point. Double pressure is shown.

James, 11:44
The bears failed to capitalise.

James, 11:48 (USA interest rate decision effect the previous evening).

We reached the base of the bull trend. Often forms the base of a TR

Buzz, 11:50
That it does.

Buzz, 12:01
As you said, the ‘bear’ bar at 11:20 was weak. The wick was too long (making it difficult to activate the entry bar) and closed at the open of the bar before. The close of bar 11:25 was a reasonable entry (aggressive) scalp long. Probably a 4 to 5 pip stop risk, i.e. below the 11:20 bear bar.

Buzz, 12:17
Took the short at entry bar 1. Bar 2 was too strong so exited the trade.

Bar 2 with a bull combi is a long entry but too high in this move for me to take.
Of course the 11,500 level is taking effect also.

James, 12:21
More difficult now with the trend line break. But still a valid trade.

I mean the long

Buzz, 12:21
Yes it is.

James, 12:22
Not a bad follow-though bar either with the doji

That looks more like a double-pressure bar.

Buzz, 12:23
It does.
Great, going out for some sea air.

James, 12:24
Enjoy

Buzz, 12:25
Actually, frosty sunny foggy sea air.

Published by Day Trader

I flew fast jets for 30 years of my life. I've traded full-time, more or less, for the last ten years, initially from fundamentals and over the last few years as a dedicated day trader. I live on the North Norfolk coast.

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