Tuesday, May 18, 2010

18.05 daily recap

- open gap up, with high volume from O/N; gap got filled pretty quick, and the sell off started
- from volume profile we can see how value is shifting & breaking down
- i think it's very important where the price closes in relation to previous distribution, so we can make the right decision and trade on the right side. For example: in G period, value shifted higher from F but price closed below VA, fact that shows weakness so in H period we have a break down from value
- the only thing i want to mention is how amazed i am about how well the levels are working, well not by the tick, but like an area. I think i should trust them more and i should trade them more often, i have to acknowledge that there will be losses along the way, and maybe they'll not work all the time like i expect them to.
- i made +6.25 points, i'm pleased with the outcome but i'm not pleased with the way i did it. First trade was a long from a pullback to get above VAH, my exit strategy was poor because i should have had in sight the R created by the last swing high at 1136.75, and because i did see price struggling at that level, above all it was a counter-trend trade supported only by the shift in F & G. The second trade was more a reaction of the down move and shorted the VAH for a move to POC, got spooked out and exit too soon.

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