Sunday, March 7, 2010

pieces of the puzzle

This will be an ongoing post, as I'll discover new pieces along the way

- DON'T THINK SHORT TERM, THINK LONG TERM.
- you don't have to trade all the time, you only have to trade when it's a steal & deal; or "when all your planets are aligned".
- combining MP with TA we can get a confluence of levels, which lead as to CONFIDENCE.
- ES is one of the easiest markets to trade intra-day as long as you play by the rules.
- don't trade in the middle of nowhere.
- we can't guess & know where the price is going so each day we need to wait for the market to give us some reference points.
- market can do anything, anytime
- there is so much going on in the markets, at any point in time, so you should only focus on what you know for sure.

- everything you need to know is in the charts.

- what we know or daily reference points:
  • -from previous day:
- previous day H/L
- Globex H/L
- Settlement price
- S/R from longer time frames & MP
- VAH, VAL & POC
- HVN & LVN
- WIB H/L
  • -from current day:
- IBH & IBL
- dVAH, dVAL & dPOC

Note: (I'll focus on these reference points for now and try to develop a sound trading plan around them. I'll keep an eye on other points like 1.5 x IB, 2 x IB, etc.)

- the most important thing is PATIENCE, wait for the price to get to your levels and grow the confidence to take the opportunity when it presents itself and confirmed by the order flow.

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