Tuesday Log – Feels Like Monday

Today’s action found me on the sidelines most of the day. Felt like a Monday, traded like a Monday and I took minimal trades, just like a Monday on this Tuesday after the Memorial Day weekend.

Market opened long and wanted to get in but wanted to wait for CC report. Market went parabolic after CC report announced @ 1000. Was waiting for low risk pullback once the market went parabolic but the train left the station without me. I’m looking to use 1 minute chart on these hard moves in order to find an opening to participate as there was a subtle pullback on the 1 minute. This is a method outlined in Brooks’ book.

Tried a CT short at top of the range @ 1139 but ended as a scratch as price failed to move to 901 area (bottom of range). I was being very conservative and patient through the day.
Result: Scratch

1415 reversal period came and went without the anticipated pullback. New high was made at 1439 which looked like a move to run stops and in hind sight that’s what it was. There was lighter volume, SS and ADX divergence with the HH and waited for trendline break which occurred @ 1454 and then anticipated two legs down.

Went long to early before second leg was completed. Tightened stop to above swing of 1st leg and got stopped out. Result: -3

Took the other side (short) to ride the second leg down which worked out although may had tightened the stop too quickly. I did not have closing order ready @ 905 support area which was first MA touch and would have been a TC long set-up. Next time I must have PO1 set with 50% of position taken off and re-set remainder with stop @ B/E and second target for PO2 which would have been hit. Result: +3.25

I need to be in the mind set to enter bracket trades and will do better with this aspect of my trading tomorrow. One thing I was more conscience with today were my stop locations, but more importantly analyzing and identifying “at what price level am I wrong”. Seems simple enough but did not really think of it in those terms until hearing it from ‘Q’ @ Tickerville.

Also, beginning to be aware of the price action strategies as discussed in “Reading Price Charts Bar by Bar”. Just about completed the first read through and will be reading it several more times. At this stage of my trading, this book takes my understanding of price action to the next level. Hard to put this book down and plenty of “ah, ha” moments as Brooks explains several price action points that are very familiar after spending literally hundreds of hours of ES chart time observing and participating in price action.
Tomorrow is another day.

Trade Well !