Great Intraday Plays

[CanOz]

One of my favorite pastimes when i have time for research is to look for ideas for trades. These ideas come from things i have seen on the screen, on the DOM, on YT, other forums etc.

I don't particularly trade traditional patterns, but look for areas where traders could be trapped in a traditional pattern. So this thread is not about flags, pennants, etc., but more on areas where a run of stops could occur and how to manage it for a few ticks and possible a longer run...

I'll post some ideas on charts, videos etc. and hopefully others can post some ideas too. Some of this will be in hindsight, some will be sim, some even market replay, some will be live. Really looking to share my ideas and hopefully receive some other ideas along the way.

I don't really log my ideas on hard copy, but sort of try and learn the idea so i can recognize it on a chart or the order book. What I've been trying to do now that i'm not live full-time, is to log enough trades with this "mental play book" to see if there is a statistical edge. I think this important to do before trying it with real dollars on the line. I need to trust my playbook.

 

[CanOz]

I See this one all the time,well at least twice a day on most indices and several time a day on CL and GC.

It goes like this, a move starts (usually for the same reason as it ends). The initial buying is met with more buyers, momentum.

A key level is approached.

By the time the key level is approached there are a few traders holding profits, some selling for profit, and some new buyers. You can sort of tell by the size whether they might be significant or just retail punters.

The buying slows at the top, with only a couple of buyers left holding the bag.

The move reverses when a few more take profit, or some Prop Guys hit and sweep the bids.

Once the market moves below the last push higher there is often a rush of liquidated positions. This is the first push and is usually good for a few ticks depending on what market it is. If stops are not triggered here then I don't hang around.

If the stops are hit then i take my first lot off. The market usually pulls back a bit as we all cover and a few buy thinking the price is going up.If there are no new buyers of any size though, the covering stops and the new sellers will sweep the bids lower, taking out the recent buyers, the trailing stops from the previous move up and the next leg pushes lower.

Now we'll have new shorts, plus some short covering and the price slows and the process either repeats or a smaller range forms, depending where we are in the market structure at the time.

 

[CanOz]

Gaps between Extended Trading Hours and Regular Trading Hours also can give a decent opportunity. Today as i was typing up the prior post, my GAP order got filled on the NK.

These are straight forward but i always use a stop buy order. Take off 2 contracts at 5 ticks, another 1 at 10 and leave a runner.

 

[CanOz]

3 Drives to a low / high

 

[CanOz]

Nice false breakout on the 6A this morning...more trapped traders...

 

[CanOz]

Watch out for icebergs in the morning

 

[cbc]

Well that's different....

Trying to catch trapped traders.

Shame u wernt there when the titanic went down. U could av robbed people whilst they were drowning.

 

[CanOz]

Well that's different....

Trying to catch trapped traders.

Shame u weren't there when the titanic went down. U could av robbed people whilst they were drowning.

lol....you reckon i could be more of a gentlemen CBC? lol....

 

[havaiana]

lol....you reckon i could be more of a gentlemen CBC? lol....

I agree, shame on you for trying to take those traders well deserved $ Can, i thought better of you

http://www.youtube.com/watch?v=YEzQV75LDL0

 

[CanOz]

lol @ Havianna...:dunno:

 

[Trembling Hand]

Well that's different....

Trying to catch trapped traders.

Is it? How does one make money trading a zero sum game without taking $ off others?

 

[cbc]

Lol,

So what song do u play CAN when u Take advantage of the misfortune bestowed on your fellow trader?

Na just kidding........

RAPE AND PILLAGE !!!!!!!!!

 

[CanOz]

I'm partial to these old guys actually...

 

[cbc]

 

[CanOz]

Talk about trading trapped traders, I was waiting for this play all night. I put a short on and went into the kitchen a little later, the market takes out my stops and then heads lower in a big hurry, sweeping everything in sight, i come back to a -250 P/L....what a sucker So you can can trade with them, or against them...but the big boys rule.

 

[skyQuake]

Talk about trading trapped traders, I was waiting for this play all night. I put a short on and went into the kitchen a little later, the market takes out my stops and then heads lower in a big hurry, sweeping everything in sight, i come back to a -250 P/L....what a sucker So you can can trade with them, or against them...but the big boys rule.

That was a great brk of triangle on the 5min!

Amazing how it squeezed all the way back now after US open

 

[CanOz]

Trembling Hand mentioned some of his plays involve time and range. I have set the Initial Balance time to 60 minutes on both the K200 and the HSI. Today was an excellent example of how to play the open range. Even the extensions from the range are relevant levels...

 

[tech/a]

Trembling Hand mentioned some of his plays involve time and range. I have set the Initial Balance time to 60 minutes on both the K200 and the HSI. Today was an excellent example of how to play the open range. Even the extensions from the range are relevant levels...

CAN
I think I've got my head around this.
But can you please expand on the implementation
of the analysis into a trading application--please.

 

[CanOz]

CAN
I think I've got my head around this.
But can you please expand on the implementation
of the analysis into a trading application--please.

Its just another area of support or resistance. Will buyers or sellers step in at this level?

 

[CanOz]

Well that was fun. The DAX clearly defined the open range a few minutes before the 90 minutes we had setup on our level indicator. A large order appeared on the offer just above the range, clearly many wanted to fade a move, so i placed a buy order a tick above that....The break is around the 7 minute mark.

To me, the market already drew a line in the sand, there were traders there with stops set. If the market blew through that they'd need to cover in a hurry.

[video=youtube_share;EtA-gX8Eydc]http://youtu.be/EtA-gX8Eydc[/video]