Monday Log – Home in the Range

The morning started out innocent enough. Still working the simulator, I was combining a TC set-up with a EWS set-up but they were divergent of each other. EWS won the strategy arm wrestle as TC called for a long, EWS called a possible short. Was not nimble enough to take the other direction when wrong and by the time I realized the short opportunity, it was too late and was not going to chase. Result -5.25

Then I got caught playing the middle of the range. High risk, low reward, not smart. Once I was in “no man’s land”, you can stick a fork in me, I was done! This is a mind game area that I must control or avoid all together. I found myself chasing my tail on 2 trades in that middle area, finally found my brain (it was near my tail today), and stopped the losses. Result: -12.5

I regrouped, took a break then came back and looked at the EWS guidelines and took a low risk entry in 72’s, expecting middle of the range and eventually 79’s to be revisited. Starting at 1345, I got long. First target was 76’s which hit. Internals were waking up so I bought more on pullback to VWAP line still expecting 79’s. I had 3 C’s on from this point, scaled out at 78.25 and then 79.75 in the final minute. Result: +21.5

The range was identified early but I was on the wrong side as I combined the systems while divergent…lesson learned. I will not work one system when the other is not confluent or if I realize one system set-up trumps the other. Once I found my sense after losing it, I re-evaluated the range and set my sights on 79’s as “home”. I worked the trade, had confidence in my ability and observed the EWS system to get me out of the hole. I worked the trade and dug out. It’s obvious I still have an ability to lose as well, thus the sim trading for now.

So the early possible range was where “home” was and that is where I eventually found safety. The system(s) work, but the EWS has the power to see the future or at least plan for it. In the past I would be shell shocked and apprehensive to get back in. Now it’s easier to look in the mirror, evaluate, make adjustments and continue to trade when logical. A little luck helped today as well but identifying the range makes it much more homey.

Trade Well !