Wednesday, October 23, 2013

E-mini ES Thursday market thoughts

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
  • 1735.75
  • 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 under 3 days ago. I like a test of yesterdays highs (depending on the gap) and will consider a BO to test these levels or possible to beyond to fill the unfilled gap above.

Will look for Gap Fills on an up gap under the R1 pivot and a down gap above the S1 pivot/LOD. 

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 there lows of 3 days ago (10/18), 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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