12/8/2010 - LTWT - Day Trading Market Review
[IMG]http://www.learntowintrading.com/library/wp-content/uploads/2010/12/ScreenHunter_01Dec.0812.27_thumb.jpg[/IMG]We had a good discussion in the trading room and I think we were able to learn a little from many of the members today with their own comments. Today I hit 3 trades. Below are the screenshots of my orders.
[B]Trade 1[/B]: Right after the market opened it developed a stair-step pattern giving us the head-up for an entry signal. The 9:36 candle produced a kink on the TRIX closing at the resistance of the stair-step. I entered the 9:38 candle going long at 767.9 after it fluctuated back and started coming my way again… however, the market lost steam and couldn’t break the consolidation fluctuating against my position and stopping me out at 5 ticks.
[B]Trade 2[/B]: With the consolidation, I noticed the 9:38 candle didn’t move against me far and began turning around to go long at 9:40. All four previous candles created a solid mini-resistance level (or an SF set up) closing and opening at the same price level (give one tick). If the consolidation wasn’t going to move the market down, then I felt it would test the resistance again and punch through going long on the 9:40 candle. I re-entered this trade at 9:40 going long at 768 hitting my 5 tick profit target on half my position. The push ran about 7 ticks then turned around. I moved my stop to break even and manually exited the second half of my position to try to grab a few ticks but got out at break even… off-setting my loss a little.
[B]Trade 3[/B]: At 10:00 we had another stair-step pattern developing. I entered going short at 765.6, a little aggressive since the kink on the TRIX hadn’t fully formed yet, but using the movement downward to gage the momentum. The market pushed about 11 ticks my way filling my 5 and 10 tick profit targets.
We had a good discussion in the trading room of how to use a shorter time-frame, such as the 1 min chart, to help “refine” your entry points and capitalize on a trade like this where the kink may not have formed on a 2 min chart but has given us a good set up. It is possible to use a shorter time frame to get into a trade earlier, just be careful not to fall into the trap of over-trading the shorter time frames which can often lead to trading market noise. Always gage your set ups on a longer time frame first, then use the 1 min chart “only” to help time your entry.
[B]Trade 1[/B]: Right after the market opened it developed a stair-step pattern giving us the head-up for an entry signal. The 9:36 candle produced a kink on the TRIX closing at the resistance of the stair-step. I entered the 9:38 candle going long at 767.9 after it fluctuated back and started coming my way again… however, the market lost steam and couldn’t break the consolidation fluctuating against my position and stopping me out at 5 ticks.
[B]Trade 2[/B]: With the consolidation, I noticed the 9:38 candle didn’t move against me far and began turning around to go long at 9:40. All four previous candles created a solid mini-resistance level (or an SF set up) closing and opening at the same price level (give one tick). If the consolidation wasn’t going to move the market down, then I felt it would test the resistance again and punch through going long on the 9:40 candle. I re-entered this trade at 9:40 going long at 768 hitting my 5 tick profit target on half my position. The push ran about 7 ticks then turned around. I moved my stop to break even and manually exited the second half of my position to try to grab a few ticks but got out at break even… off-setting my loss a little.
[B]Trade 3[/B]: At 10:00 we had another stair-step pattern developing. I entered going short at 765.6, a little aggressive since the kink on the TRIX hadn’t fully formed yet, but using the movement downward to gage the momentum. The market pushed about 11 ticks my way filling my 5 and 10 tick profit targets.
We had a good discussion in the trading room of how to use a shorter time-frame, such as the 1 min chart, to help “refine” your entry points and capitalize on a trade like this where the kink may not have formed on a 2 min chart but has given us a good set up. It is possible to use a shorter time frame to get into a trade earlier, just be careful not to fall into the trap of over-trading the shorter time frames which can often lead to trading market noise. Always gage your set ups on a longer time frame first, then use the 1 min chart “only” to help time your entry.
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