6/29/11 Real-time Trade Setups / Analysis- Continued 2

The main thing on the chart above is to be careful of picking tops and bottoms, always assume a pullback before a reversal. In the chart above, we still see strength, even though we had a 123 short signal. We wait for a B.O.T. long signal rather than taking the 123 short. The chart below shows our B.O.T. Long following a flag pullback.



Our B.O.T. worked out, but we know that once we have profit on a B.O.T. we:

1) Secure the profit into the strength of the up move.

2) Enter the pullback long, because we assume sellers will try to depress price, but as long as we have a pullback wave signal, we take it, with a stop below the newly formed swing low.

6/29/11 Real-time Trade Setups / Analysis- Continued 2

The main thing on the chart above is to be careful of picking tops and bottoms, always assume a pullback before a reversal. In the chart above, we still see strength, even though we had a 123 short signal. We wait for a B.O.T. long signal rather than taking the 123 short. The chart below shows our B.O.T. Long following a flag pullback.



Our B.O.T. worked out, but we know that once we have profit on a B.O.T. we:

1) Secure the profit into the strength of the up move.

2) Enter the pullback long, because we assume sellers will try to depress price, but as long as we have a pullback wave signal, we take it, with a stop below the newly formed swing low.

6/29/11 Real-time Trade Setups / Analysis- Continued

I wanted to add an updated version of the chart previously posted. This details:

- Change of market condition change

- Support of price by buyers

- 123 Long signal which tells us 2 thing: 1) Selling pressure has fizzled out, if you are short, consider exiting / taking profit. 2) Buyers have stepped in to support price, consider taking a long position. There are two types of setups we take when conditions change. Our aggressive entry is the 123 entry, entering on the break. Our more conservative entry is allowing the 123 long signal to occur, wait for a pullback in price, and see if the second wave of buyers will support price.

- Wave 1 and wave 2 long opportunities.

6/29/11 Real-time Trade Setups / Analysis- Continued

I wanted to add an updated version of the chart previously posted. This details:

- Change of market condition change

- Support of price by buyers

- 123 Long signal which tells us 2 thing: 1) Selling pressure has fizzled out, if you are short, consider exiting / taking profit. 2) Buyers have stepped in to support price, consider taking a long position. There are two types of setups we take when conditions change. Our aggressive entry is the 123 entry, entering on the break. Our more conservative entry is allowing the 123 long signal to occur, wait for a pullback in price, and see if the second wave of buyers will support price.

- Wave 1 and wave 2 long opportunities.

6/29/11 Real-time Trade Setups / Analysis

Here is the chart detailing our analysis during the 6/29/11 trading session. As you can see, we had a long bias until certain conditions occurred (failure of buyers supporting price). On the chart, it details when our long bias turned to a short bias, This is following a 123 reversal signal of ours, after a failure of buyers supporting price. Prior to that, we let short signals pass us by, and waited for B.O.T. Long signals before entering the market.

In order for us to consider long trades again, we need:

- Failure of sellers resisting price

- Consider 5 min HA long signal

- we also want a 123 long reversal occurring with a simultaneous B.O.T. Long signal, this strengthens the counter short-term trend signal for us, and has a higher probability of having buyers supporting price.

6/29/11 Real-time Trade Setups / Analysis

Here is the chart detailing our analysis during the 6/29/11 trading session. As you can see, we had a long bias until certain conditions occurred (failure of buyers supporting price). On the chart, it details when our long bias turned to a short bias, This is following a 123 reversal signal of ours, after a failure of buyers supporting price. Prior to that, we let short signals pass us by, and waited for B.O.T. Long signals before entering the market.

In order for us to consider long trades again, we need:

- Failure of sellers resisting price

- Consider 5 min HA long signal

- we also want a 123 long reversal occurring with a simultaneous B.O.T. Long signal, this strengthens the counter short-term trend signal for us, and has a higher probability of having buyers supporting price.

6/21/11 Trade results: 7 trades, $210 profit

We had 7 trades for $210 total profit on the day.

Our goal for the future is to identify in what market conditions we should be position trading and in what conditions we should be scalping. We consider a profit target of 10 ticks or less (usually 5 ticks) a scalp, even though most traders would consider this a more medium term target.

We had the position trades last night, and today when we reached the screens, the market had a tremendous rally, which we did not capitalize on. We did however analyze and interpret price correctly for the time that we were trading. We took a $10 loss on a trade since we saw conditions change in the market. Aside from that loss, we has an 85.71% profit ratio, 7 trades, 6 winning, 1 losing.

I will post my first tutorial on risk / stop management later today.

Here is the chart of the trades performed during regular trading hours.

6/21/11 Trade results: 7 trades, $210 profit

We had 7 trades for $210 total profit on the day.

Our goal for the future is to identify in what market conditions we should be position trading and in what conditions we should be scalping. We consider a profit target of 10 ticks or less (usually 5 ticks) a scalp, even though most traders would consider this a more medium term target.

We had the position trades last night, and today when we reached the screens, the market had a tremendous rally, which we did not capitalize on. We did however analyze and interpret price correctly for the time that we were trading. We took a $10 loss on a trade since we saw conditions change in the market. Aside from that loss, we has an 85.71% profit ratio, 7 trades, 6 winning, 1 losing.

I will post my first tutorial on risk / stop management later today.

Here is the chart of the trades performed during regular trading hours.

6/20/11 Afterhours trade results: 3 trades, $115 Profit

We had 2 trade signals in AH. I exited the second trade and re-entered with the 3rd because for some reason my stop and target were not placed once I got filled; must have been a mistake in the ATM on my end. I did take a $5 profit on trade 2 and re-entered one tick better than my original entry for that position.

We met our target of $50 on the second setup, and protected ourselves with a stop below the swing at $30.

$115 Profit in AH, going to bed now, goodnight and good luck trading tomorrow!

Here is the chart:

6/20/11 Afterhours trade results: 3 trades, $115 Profit

We had 2 trade signals in AH. I exited the second trade and re-entered with the 3rd because for some reason my stop and target were not placed once I got filled; must have been a mistake in the ATM on my end. I did take a $5 profit on trade 2 and re-entered one tick better than my original entry for that position.

We met our target of $50 on the second setup, and protected ourselves with a stop below the swing at $30.

$115 Profit in AH, going to bed now, goodnight and good luck trading tomorrow!

Here is the chart:

6/20/11 Afterhours Wave 2 pullback short: $60 profit, 12 ticks

We took a wave 2 pullback short. A few notes about why we entered the position.

1) Failure to set a new high / failure for buyers to support price and break the high.

2) Wave 1 breaker with conviction.

3) Upon pullback after wave 1 short signal, there was a failure to break the previous swing high.

4) Target was set at 2 ticks below previous swing, at 3 points.

Here is the chart that details the setup and entry / exit.

I will be posting system rules over the next few posts.

6/20/11 Afterhours Wave 2 pullback short: $60 profit, 12 ticks

We took a wave 2 pullback short. A few notes about why we entered the position.

1) Failure to set a new high / failure for buyers to support price and break the high.

2) Wave 1 breaker with conviction.

3) Upon pullback after wave 1 short signal, there was a failure to break the previous swing high.

4) Target was set at 2 ticks below previous swing, at 3 points.

Here is the chart that details the setup and entry / exit.

I will be posting system rules over the next few posts.

Afterhours- Possible change of trend / lack of buyers: Trading PRICE ACTION

I want to show you a real-time example of a possible change of trend / lack of buyers in the market.

1) We had a rally attempt to the high, with a FAILURE to break the high. Indicating a lack of buying pressure.

2) On the 5 min, we had one last rally attempt with that single green bar. This is what we consider the LAST WAVE of BUYERS. This wave usually holds a losing long position in the markets after Wave 1 and Wave 2 buyers secured a profit and the wave before the last wave got stopped out.

3) Long signal failure, breach of support for that long signal.

Afterhours- Possible change of trend / lack of buyers: Trading PRICE ACTION

I want to show you a real-time example of a possible change of trend / lack of buyers in the market.

1) We had a rally attempt to the high, with a FAILURE to break the high. Indicating a lack of buying pressure.

2) On the 5 min, we had one last rally attempt with that single green bar. This is what we consider the LAST WAVE of BUYERS. This wave usually holds a losing long position in the markets after Wave 1 and Wave 2 buyers secured a profit and the wave before the last wave got stopped out.

3) Long signal failure, breach of support for that long signal.

6/19/11 Afterhours trades: Signals explained, $135 profit so far

We had 4 signals so far since 6 PM EST. I would like to explain each signal and discuss what we did and why we did it.

1) Short 2184.25: 2183.25 had massive support from buyers and sellers were not able to breach that level. We moved our stop to the invalidation point which was 2184.00. We got 1 tick of slippage an were stopped out at entry on this, resulting in $0 on the trade.

2) Long 2184.00: We saw the massive support in the market / initial wave of buyers come in. We got stopped out on trade 1 and entered long due to the support from buyers and pressure to the upside. Our stop was placed at 2183.00. We took profit at 2187.75 once we saw buying pressure fade / sellers resisting price. Since we had a long bias and were expecting a pullback rather than a reversal, we disregarded the short signal. Profit of $75

3) Long 2187.50: We bought the pullback once we received a long signal, stop placed below the swing low. We realized the market was somewhat choppy / ranging so we decided to take a profit on this trade of 2 ticks and then re-enter with our stop placed at the same invalidation point of 2187.00, see below. Profit of $10.

4) Long 2187.50: We re-entered the long direction as mentioned above. Our situation now is completely risk-free since we secured the 2 ticks and are now risking 2 ticks. We exited when buying pressure seemed to fizzle out. Profit of $50.

Entering on the signals given, we have a profit of $135 so far.

6/19/11 Afterhours trades: Signals explained, $135 profit so far

We had 4 signals so far since 6 PM EST. I would like to explain each signal and discuss what we did and why we did it.

1) Short 2184.25: 2183.25 had massive support from buyers and sellers were not able to breach that level. We moved our stop to the invalidation point which was 2184.00. We got 1 tick of slippage an were stopped out at entry on this, resulting in $0 on the trade.

2) Long 2184.00: We saw the massive support in the market / initial wave of buyers come in. We got stopped out on trade 1 and entered long due to the support from buyers and pressure to the upside. Our stop was placed at 2183.00. We took profit at 2187.75 once we saw buying pressure fade / sellers resisting price. Since we had a long bias and were expecting a pullback rather than a reversal, we disregarded the short signal. Profit of $75

3) Long 2187.50: We bought the pullback once we received a long signal, stop placed below the swing low. We realized the market was somewhat choppy / ranging so we decided to take a profit on this trade of 2 ticks and then re-enter with our stop placed at the same invalidation point of 2187.00, see below. Profit of $10.

4) Long 2187.50: We re-entered the long direction as mentioned above. Our situation now is completely risk-free since we secured the 2 ticks and are now risking 2 ticks. We exited when buying pressure seemed to fizzle out. Profit of $50.

Entering on the signals given, we have a profit of $135 so far.

6/7/11 Trade Results: 12 trades, $580 Profit

Final exams are over with, so all focus is back on trading. Today, we had 12 trades for $580 profit.

I will begin posting thoughts, ideas, and trade results regularly again.

6/7/11 Trade Results: 12 trades, $580 Profit

Final exams are over with, so all focus is back on trading. Today, we had 12 trades for $580 profit.

I will begin posting thoughts, ideas, and trade results regularly again.