Thursday, October 24, 2013

E-Mini ES Market Thoughts Friday


ES and NQ Five Day 30 Minute Charts

 ES PRE MARKET THOUGHTS
This a sample of how I do my market preparation. The night before I form a hypothesis of how I will approach the day if the market gaps up or gaps down. Preparing the night before takes out all the emotion and once I see the morning gaps I then refer to my plan for the day. 

White Lines show the Price Levels I will be paying attention to tomorrow along with the Highs and lows of the day and pivots:
  • 1742.25
  • 1734.50
  • 1728.5 (previous gap fill, semi-support, if not for a gap fill wouldn't consider. Could run down to 1717.50 before bouncing)
  • 1717.50
Trend and Thoughts: Trend is still UP...Staying Long off support and taking false breakdowns off support levels unless there is a bearish gap clearly under yesterdays low of the day. I like a test of yesterdays highs (depending on the gap) and possible the weekly highs. Will consider a BO to test these levels.

Will look for Gap Fills on an up gap at yesterdays high and a down gap above yesterdays open price.

If the Index's gap solidly over its High (which I would then consider support) I will consider running with the index long at the open. If the 3 index's have a bearish gap down, under yesterdays lows, will look to short  and go with the gap....and then consider breakdowns.

Will not  consider any fade's short unless super a bearish gap. Not fighting a trend that has pulled back.

* You don't have to trade everyday. If the conditions don't feel right or if you're unsure of the current days trading environment then PASS on the trade. Missed money is better than lost money.  Day trading and the stock market is not a "war" that you must win at all cost. Trading should be fun, wait for only the good setups. Follow your rules, stick to your stops, and know that everyday the market presents a new chess board.





 

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I DO NOT MAKE RECOMMENDATIONS TO BUY OR SELL SECURITIES - I JUST POST TRADES I MAKE OR FIT THE RULES OF MY TRADING PLAN ON A DAILY BASIS. DO YOUR OWN DUE DILIGENCE - YOU ARE RESPONSIBLE FOR YOUR TRADES, INVESTMENTS, AND DECISIONS! ALL CHARTS COURTESY OF TRADESTATION, SCHWAb & TD AMERITRADE