Pre-Open Notes: posted 30 minutes before the open
- Gap: Flat, early run to yesterdays high without 20sma support may look to short. A consolidation around yesterdays highs with 20sma support may look to take long after 30 minutes. Test of yesterdays lows is risky to fade. Touched twice yesterday and with 20sma trending lower would push for a pass on the fade in the first 30 minutes.
- Prior Day Daily Bar: False Up day on both indexes point to don't get fooled into leaning long early. Wait 30 minutes is today's play. Don't like much long the first 30 minutes.
- 20/60/200sma: Trending lower and still under the 200sma 5 minute chart. May look to short below 4605 on NQ.
ES Support/Resistance Target areasSupport and Resistance Key. Green dotted Lines: Area to target to get long Red dotted Line: Area to target to get short
NQ Support/Resistance Target areasSupport and Resistance Key. Green dotted Lines: Area to target to get long Red dotted Line: Area to target to get short
Morning Targeted Areas
The night before I form a hypothesis of how I will approach the day if the market gaps up or down. I base this hypothesis off the 15 and 60 minute trend, Support and Resistance areas, and the prior days trend. Preparing the night before removes the emotion of randomly placing a trade.
Attempt only trades in which the ES and NQ line up for optimal success.To be successful in trading master ONE setup before tackling another. Study it, own it and turn off the computer after the trade and let it play out.
How to succeed:
- One day at a time devoting yourself to the same setup day after day.Think, sleep and eat your setup.
- Skill is developed by hours and hours of working on your craft. Small advantages hammered out day by day.
- Everyday write 3 things you learned from your setup.
- An oak tree will not fall by hitting it at 20 different locations but by hitting it at the same spot day after day.
- Don't be afraid to make a decision. Don't be afraid to fail and have a losing trade. You will not be perfect.Trade within your means.
- Previous Day Daily Candle Price and trend
- Today's Gap
- Was the previous day a Breakout day, continuation day or flat
- 15 and 60 minute trend or 5 minute 20/60/200sma - to stick with the trend
- Support / Resistance areas .
* 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.