The green arrows are from today 10:30 AM market time. ES opened on a gap down and broke lit. It’s not perfect and I have to add bollinger bands to it, but it’s a start.
As long as price action follows the trend, the arrows keep going up, higher highs and lows form, and especially if you see this action exiting a zone, it’s good to go.
I caught this entire move.
Tge green rectangle is the demand zone. Th price broke out and pulled back. I waited for the pullback.
Then the blue arrow showed up. That’s the parabolic sar crossover signal Chris put in showing possible direction to upside.
Then my arrows showed up. At that point I took a long position and watched to ensure the price stayed above a bollinger band and kept watching the green arrows follow the price.
As you can see, between the signal Chris did, the arrows showing up, the price riding a few sma lines and bollinger bands it went up until a supply was formed at the top. At that point the arrows disappeared which means one indicator is not in alignment with the others.
I entered 3972 and closed out 4000
What I tend to do is enter long when a stock breaks out of supply/demand resistance, or short when it breaks supportand set a stop loss on the other side of the zone. It helps mitigate a loss in a fakeout and retrace.
I’ve gotten faked out a few times, even with the arrows, but what usually happens is when I enter long, and I see one arrow, then another, and another for a few consecutive candles, odds are good.
But if I enter long and I see arrows appear and disappear sporadically, it usually means chop action. I’ll either close out and reposition or sset a tight stop loss and leave it alone for the day.
I have downside arrows as well
I also use the confirmation candles Chris wrote, mainly for interim support and resistance. There are times where a stock is between zones on the c3 max but a stock never reaches a zone. It is because it hit a resistance or support between zones at the time and the new zones will be drawn out later
This happened between Tuesday and Wednesday. On Tuesday there was a supply at 3980 but es never reached it. The confirmation candle resistance was at 3938 or so.
The next day c3 max drew out Tge new supply at 11:15 or so. Once that previous day resistance was broken, it continued up
i warned you all... This is a TON of information. But unfortunately, this is really the only way to get good at day trading. It's being able to absorb information quickly. That is why I am paper trading. I didnt know any of this last year and I got stick of losing money. Plus I was involved in OTC at the time... never again.
the arrows work off the macd, rsi, mfi, short and long term ttm wave, ttm squeeze, adx, and on balance volume. When all of those are either above 0 or above 50 for rsi/mfi, the arrows show up.
When they are all below 0 or below 50 the red downside arrows show up
the grey boxes are other consolidation indicators that work in conjunction with the zones from c3max
you can see on the right the supply zone was at 3970 or so, but the price never broke out of the grey box (another consolidation).
the c3max eventually drew another supply zone the next day right where the grey box ended from the day before. at that point that was a major resistance (2 different indicators showing the same consolidation and supply resistance). once it broke out of both boxes i took a long position with a stop loss below the new supply zone support.
right before my entry, which is the first green candle peeking out the right side supply, there was an aqua parabolic sar crossover, stating a possible move upward.
after i entered the price started moving, then i saw the green arrows show up over and over again. at that point I knew it was going to run and my stop loss wasnt going to trigger.
next thing, the vwap (purple avy line), the sma 5 red, 21 blue, 50 yellow, all started curving up, then the 200 green sma followed, and the confirmation candle resistances (left side with the green dots), started creating an upward channel, and it ran for almost 30 points in 45 minutes.
the indicator on the bottom left is a smooth heiken ashi, which i found in usethinkscript forums. it smooths out the choppy noise. green boxes that curve up or get wider means the avg heiken ashi price is slowing becoming bullish.
you can see right at the breakout, all my indicators on every single study were all going up or reversing from bearish to bullish.
the blue ttm wave histograms are very good at detecting consolidation and compression as well. dark blue means the stock is compressing (accumulating at a certain price level. Light blue means expansion (price will be moving).
when you see the histograms below the zero line and start to creep up, that mean a possible reversal to upside is pending. Thus, when looking at the ttm wave, you see how it was dark blue and below zero, but the histograms were slowly creeping back up to zero with dark blue. that means a bearish downtrend may be ending and the stock is being bought up by bulls at a certain range.
then the histogram eventaully went above the zero line, and eventually turned light blue. the fact it was above the zero line means a bullish trend may be coming and the fact it went from dark blue (consolidation) to light blue (expansion) means the price is about to move.
histogram above zero = bullish. dark blue to light blue means compression is over.
this happened on 09-07 12:40 PM market time on the 5 min chart. and that is EXACTLY where the breakout happened on the supply zone and exactly where i entered. then it turned dark blue again at 4 PM right at the close. As a general rule I will not hold a position past 3:30 PM EST regardless of chart.
then on the open today was a gap down, dark blue histograms but still above zero. dark blue = consolidation above zero means bullish. and what happened... people bought the gap down dip at thew open today.
then at 10:15 AM market time it turns light blue. what happened 15 minutes later... stock broke out of a supply zone from c3 max and it jsut ran... i entered on that breakout and sold at soon as i started seeing one of the indicators fall (macd, ttm squeeze, short term ttm wave which is the yellow and burgundy, it didnt matter). as soon as i saw macd fade, then ttm squeeze fade, then the ttm wave short term turn from yellow to burgundy (same principle as light blue and dark blue on long term), then price broke belw the 5 period sma... i closed out.
that was at 11:35 AM market time today. 25 minutes later at noon, ES took a big dice from 3995 to 3975. i closed out at 4000 before the crash
I entered a short mes position in paper trade at 7:54 AM market time on 09-09-2022 4037. Using the c3 max 15 min chart, and the extended hours chart on, see if anyone can figure out why I entered and where my stop loss is.
Reply back.
Now from there if my intention was to hold it, I wouldn’t use the arrows for anything past a 1 hour timeframe.
ES is now at 4041. Had I wanted to swing it, my 3972 entrt woudl have been golden bc I entered on a day trade right where the hourly demand is… perfect bottom entry for a swing trade IMO
got stopped out at 4046. switched to a long position at 10:01:42. double heavy compared to my short loss. sold at 10:05:05 market time at 4051. turned a red trade to a green net gain.
im in long 4060 to ride a trend..
closed it out. i smell a fake breakout. 5 min chart is fading. RSI overbought, MACD fading, MFI is not making higher highs, ttm squeeze going from light blue upper movement to dark blue down movement, ttm wave short term going down and burgundy, volume dying out, supply zone here. i smell a breakdown.
i may be wrong on closing out but i took the 2 point scalp from 4060 to 4062. something about this doesnt feel right to me. not enough conviction for me to give profits back
last trade. took a short position
last trade. took a short position
sorryi had 2 contracts. i bought one to cover at the 21 period SMA on the 5 min chart. holding the other
added to my short position again 12:08:05 4048.25
gave back profits. i dont like the price action.did the add on the 1 min chart (against my rules). paid the price for it. lesson learned... dont use the 1 min chart and stick to your rules.
i always get faked out on the 1 min chart
I recovered. bought the breakout of 4064.25 at 13:30 market time. 5 contracts long in es for 4063.25
closed for 4066.
net gain green for the day $412.50. Profit YTD $750 doing nothing but scalping while working full time
too bad im broke in my OTC garbage account and I wont sell for a loss so Im stuck
