FTSE 100 Intraday trading - MAY

[phimor]

Fib interpretation

Hi Bonsai,

Following your posts on FTSE intraday and your thoughts. Please keep up the good work.

I am only paper trading at the moment ........on the learning curve!

Could you please explain your use of Fibs? I understand the principles, but get confuse as to where to place the grid. eg if I stretch the grid from the peak on 16/5/03 to yesterdays close I see the 50% retracement @ 4007, but if the grid is stretched between the high on 16/5 and the low of 21/5 (ie peak to trough), the fib level @ 50% is 3992.

What are the ground rules in placing the grid?

Thanks!

 

[bonsai]

I use fibs in conjunction with elliott
so I assume each elliot wave will correct
1 corrects to 2 and 3 corrects to 4 etc
its only when the full 5 are in that I use the original high with the subsequent low.

so I would neve use the high with yesterdays close at 3990.

of course I dont always get the elliott waves correct as they are often (too often perhaps) ambiguous.

hope that helps.

 

[bonsai]

red
I was thinking that globex is a very thin market and while ftse is open mm's will play games. So will the UK branches of US brokers ?

so , yes, I think you may have picked a very small sample.
but of course the system may still work with good money management.
Actually, most systems may work with good money management
(ouch)
lol

 

[bonsai]

so we have now had a bounce off yesterdays opening but not the strongest of pull backs ?

may go a bit higher than 3977 though.
a pull back now and a higher low could be good for a run up to dow open ?

but the mm's arent a charity !
so it may not show us an obvious higher low.

you pays your money and you takes your risk.

 

[bonsai]

another view ?
head and shoulders in the making ?
the bulls wont like that !
but a drop to 60 might produce a nice spike entry for a long.?
as well as test sentiment again ?

 

[waytogo]

Hi

I am also a FTSE 100 intraday trader. Am probably done for the day ( and the week) now though as I find it hard to keep up the concentration and hence stick to my rules in the afternoons. Your thread is interesting in that you have a totally different perspective on trading the FTSE to me. I try to be much more mechanical and not worry too much about what might happen - just go with the flow. I have noticed that potential head and shoulders looming though - but it's quite a long way from confirmation.

Keep up the good work on this thread. Trading is a lonely business, and its good to know there are a few others out there looking at the same things.

Waytogo

 

[bonsai]

thanks waytogo

when I trade I am fairly mechanical too

but every long could be a short.
so I have to keep an open mind about both upside and downside or there is a risk of seeing in the charts what you want to see ?

some of the comments are just to colour the day.

colour me blue !

 

[bonsai]

running the friday gauntlet ?
long at 66

 

[bonsai]

now it needs to bounce ?

 

[bonsai]

why didst thou promise such a beauteous day
and make me travel forth without my cloak ?

out 58 -8

 

[bonsai]

this looks like a friday night shake out
mm's trying to shake us out to balance their books for a long weekend.

on the other hand ......

 

[bonsai]

ftse closed at 3979.80
in a nicely ambiguous fashion.
3 legs up from the low today which could of course also be an abc.

unfortunately the header chart does not seem to have included the final close after the auction.

and we are closed on monday

have a good weekend all.

 

[bonsai]

morning

short at 50

 

[Newtron Bomb]

good call. Coming back to test your sup/res line now i think

 

[bonsai]

hmm
futs seem to have gone a bit flat now

taken 44 for +6

time for coffee.

 

[Wideboy]

Bonsai,

Could you also post your reason for entry/exit ?
ie. system/indicator signals, sup/res etc...

I can see that Fridays low at 3953 was a good short entry upon break and test @ 08:30 today.

Cheers

 

[bonsai]

wideboy
if only it was that simple but it would often take up 2/3 paragraphs.

but just for you ?

1) try and be on the right side of the 1 day average.
2) see my friday post about closing with an 'abc'
3) break of fib at 60 left me waiting to take a short on pull back. But as usual the futures was way ahead of cash.
4) my s/t macd was falling below zero
5) my s/t rsi was falling
6) cash caught up with futs about 54 but sb's spread only allowed me in at 50.

?
couldnt post this every time, just not practical especially as if I want to trade I can draw on about 5 different concepts to trigger a signal.

so each explanation could be diff and unrelated.

and the reasons for getting out ?
just as complicated sometimes.
1) thought I detectd support around 39
2) after a small 'ab' expected to get 5 leg 'c'
3) exit to protect profit.
4) now waiting for next signal

hope this helps ?

 

[Bigbusiness]

Bonsai,

I enjoy reading this thread and wish that I could trade the FTSE as well as you do.

It looks like you need a Chinese Menu to explain your trades. Then you could write Short 66 reason 84C, Closed 54 reason 12B

 

[bonsai]

lol
short again at 42

 

[Lambchops]

Bonsai - 1) Try to be the right side of the one day average. Is this a sma or ema and of what duration is it? 60 min etc