Observe & Trade*

Tuesday, December 28, 2010

A shallow cup and handle formed on SPY (ES, e-mini).

In-between the pivot and the previous close, it plays a zigzag mode after it drops from the open.

From there, it stays idle in the form of rectangular S/R level.

At around 12:00 noon to 1:00 pm., it consolidates on small bars above the 20MA.

Confirming a buy trade!

That's showing the technical trading 102.

Out from my trading table and showing this 5-min. chart from DIA (YM, e-mini).

It formed a cup and handle pattern.

Nice up trending move after it drops for profit taking in the early trading.

A good entry at consolidation above the 20MA in between the pivot and the previous close.

Other e-minis did not make a decent move, TF and NQ, while ES just made a slight ascend.

Showing the concluding chart that I traded today in the YM e-mini.

Note that I am using DIA chart for they are almost identical in pattern.

I traded twice the YM, the first one I bailed out for it drops and I didn't wait to hit my stop and lost a couple of points.

I reenter again and made barely four points for I exited at the S1 because of the big red bar.

From there, it recovers and I am already out in the trade until it went up further.

I focus on the wrong index futures, had I focus on TF and the NQ, I could have traded a better pattern.

But that's how in trading, it's a matter of sound decision making because it involves human psychology.

I focused on the wrong instrument to trade today.

Whereas, if I explore the other instruments (TF; ES; NQ), I could have made a better trade.

I left my trading table after I exited my YM trade for I felt the volume was nil.

Anyhow, the three instruments made their nice decent move after that.

A very clear low risk trade on the three.

Exit YM for a gain of 4 points.

Looking for a 10+ point gain on YM. Will move stop to break even. Keep monitoring.