'Trading is a process of observing the market's action until such a time you can find and form trading ideas and get involved.'**
Saturday, January 15, 2011
Thursday, January 13, 2011
Trading ideas
Showing this 10-min. chart from Russell 2000 (TF).
It vertically leap in the open then drops a little bit in the R1 (red bar).
That is where the best entry for a long trade.
TF moves $100.00 per point, gaining 4 points gives you a profit of $400.00 for a contract.
But if you are a small retail trader like this one, trading TF especially during high volatility makes your nerve wracking because of the big (high) increments in value.
That's why preferably NQ and the YM is the most appropriate to trade, at least the pressure is not that much from trader's psychology.
Going back to the chart, reflecting them on the multiple time frame can show the right entry and exit.
Referring to 1-min. frame is the best way to watch its movement.
Also, the almost 24 hour chart in the e-minis can give you an edge in identifying the direction or its movement.
Wednesday, January 12, 2011
Observe & Trade
Showing the 5-min. chart from YM (DIA) and NQ (QQQQ) that was just traded.
The market gap up and bought for a long trade when it drops after the open.
Amateur open the market, pros take the opportunity!
Took 7.25 points from NQ ($145.00) and 25 points from YM ($125.00).
Not bad for less than an hour of watching.
Trading ideas
Just to show this 3-min. chart from TF wherein the "h" pattern I pointed out in my previous post about the short trade.
Notice the previous close was hit then it bounced.
That was the sign to exit the short trade.
Though it can also short from the R1 but the most probable to confirm was at the "arc" on the "h" pattern.
Tuesday, January 11, 2011
Trading ideas
Showing this 5-min. chart from TF.
One can find a long trade before lunch time with the rising 20MA.
And another trade, a short one, showing and "h" pattern type.
Sometimes recognizing a pattern such as this chart can give us an edge.
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