What's Your Process?

[Caseynotes 2,846]

To have a system is very important, you need to know what you are going to do in any eventuality in advance or you will just panic and blunder into mistakes, you will continue to repeat the same mistakes over again unless you plan. This is my trading style and the time frames are in accordance with it, no doubt you will have your own process with your own appropriate time frames.

Just the basics. 12/04/10 (Friday) On Dow.

I've taken away my usual auto support/resistance levels as they have since updated and changed but the daily pivot levels are similar. I used to use Fib levels long ago but a while back I tested Fib levels against strong support/resistance levels with daily pivots and round numbers. The S/R, pivs and round numbers team won easily.

I start with;

1/ Daily chart; (pic 1) shows uptrend continuation with current weak pullback.Yesterday's candle (11/04/19) was a second doji (signalling indecision).

Possible scenarios; Pullback failure and uptrend continuation or price seeks stronger support lower down (not rocket science), ps, do you like my 'this is the top' joke.

2/ H1 chart; (Pic 2).

00:00 - 7am. Price moving above daily pivot (Orange) and is looking for resistance; most likely scenario - move up to test R1, possible alt scenario retest pivot. Plan - look for a pullback to buy on the 5 or 1 min chart on the way up to R1.

3/ M5 chart;  (see pic 3);

A - no pullback in move to R1. Very bullish.

B - weak attempt to pullback at R1. Plan - buy pullback failure with stop below R1.

C - weak attempt to pullback at R2. Plan - bail if move down strengthens.

D - support found, Plan - move stop to support as price moves through R2.

E - weak pullback, support found. Plan -  move stop to support as price moves back up past prior high. 

F - strong push though R3, this could be an exhaustion bar, no matter what I wouldn't want to see that big candle upended, Plan - move stop to below R3 after the test. - Stopped out.

G - support identified and retested at R2, Plan - look for new long entry.