Loads of sell signals

[Steve Griffiths]

Hi Everybody,

Great to see a number of nice sell set-ups just before this mornings fall into the low of the day. Please see below for one of these on the 3min YM. I particualry liked the way the projected profit target nailled the low of the day (so far) :)

But otherwise a nice automatic trade.................... and a good start to the day and week:)

Steve

[KEPILOT]

Hello Steve,

Nice trade for eSignal Users. It never came on TS. I guess :(

KE

[Steve Griffiths]

Hi KE,

Yes it did, please see attached, the same TS1 sell as on eSignal.

Thanks

Steve

[Eileen]

Steve can you talk a bit about the different colors you have now added to the ATR on e signal? does this mean that in this short you sold at the first blue ATR dot? Did you program in the colors for this reason? Thanks for the clarification. This is the first chart I have seen where the ATR was in two different colors. Thanks, Eileen

[Steve Griffiths]

Hi Eileen,

I did not use the ATR stop in that example. But for how to use the ATR stop, please see the help file at http://www.mtpredictor.com/pricing/EODHelp1.html

Thanks

Steve

PS, this is only for tarde management and not trade entry - this is always off the colored reversal bars.

Thanks

[Eileen]

Hi Steve, thanks for the reply. I have already read this help file. My question is about the fact that you have color coded the ATR. Thanks Eileen

[Steve Griffiths]

OK,

But I thought that this would have been obvious as the blue dots are below the bars and protect a long position and the red dots ar above the bars and protect a short position..............

I hope this helps ?

Steve

[Eileen]

The question was in this particular short example, since it was a short would you sell at the first blue ATR dot that you hit? Thanks Eileen

[Steve Griffiths]

Hi Eileen,

No, as I said before - the blue protects long trades, so as you are short you would be using the red dots - this will all become clear once you have purchased the software :)

Thanks

Steve

[jswin]

The question was in this particular short example, since it was a short would you sell at the first blue ATR dot that you hit? Thanks Eileen

Hey Eileen, just thought I'd jump in...:)
If you were short off the bottom of a red sell bar and utilising the ATR stoploss strategy, you would remain in the trade until price retracted and hit the first red dot at which point you would buy to close the trade.
It sounds as though you are thinking that the ATR is an entry signal, when it is a signal to close. Otherwise if you were already short and then you sold again at a blue dot you would be adding to your position, not closing it.
Cheers,

[Eileen]

sorry just a slip of the tongue. I meant buy to get out of the short. My observation on the chart that Steve posted in e signal is that you would have had a better exit position if you bought when the trade started moving up and you bought at the first blue dot you encountered rather than waiting till the up move hit the first red dot encountered. You would have made more money, so I thought maybe Steve had designed it this way intentionally, so that the color coded dots could be used in this fashion, but I see that is not the case. Thanks for taking the time to answer. Eileen

[Steve Griffiths]

I think my exit position on this trade caused the confusion, as I said eaierlier, I did not use the ATR stop on this particular trade.............. so better not to look to hard it it on this particualr example

I hope this helps ?

Thanks

[Eileen]

Hey Steve, sorry to keep this goibng and take up your time on such a great trading day. I was not confused. I just was trying to make the observation that it seemed like a better exit using the first blue dot encountered rather than the first red dot encountered and wondered if you had noticed this and if this is often the case. The ATR itself is not confusing. Thanks Eileen

[Rimu]

Steve..
How do you decide in real time whether to use the ATR stop or the WPT as an exit? Noticed in this threads trade you used the WPT which got you out at the days low, but in the 3min Ym...wow trade you have ignored the WPT and gone with the ATR which keeps you in the still declining trade after the WPT exit was triggered.

[Steve Griffiths]

Hi,

Eileen -Please see http://www.mtptrader.com/showthread.php?p=4444#post4444 for a good example of how the ATR stop works in practice.

Rimu - this depends on the larger degree trend, if I am confident that we will get a big larger degree swing, then I am happy to let the trade run further (ATR stop). Otherwsie, it is better to look to use the WPT targets.

I hope this helps ?

Steve

[jands]

Personally I used the ATR yesterday since the previous day was the FED meeting and the sell setup on the S&P, combined with the inside and outside bar.

It was more wood on the fire to feed it.

Hope this helps.

Jim