5 Jan
#eMini Trading Levels & Leaders
Posted in Intraday Analysis by Bob English at 15:11:33 2 Comments2:11 pm EDT: A quiet day as expected. Effectively, we gave two possible ranges in the morning report and the inner one has held so far (though the ES broke it two ticks to the downside after the 10:00 am reports). For new readers, in general, we allow for a 2 to 3 tick break of a level, but need to see a quick response in the opposite direction to consider the level to have held.
The EuroYen has sold off hard today, with the largest daily range in several weeks. This may be forecasting some short term weakness to come in equities in the next few days. If the ES closes in the bottom third of its range today, we would not be surprised to see a test of at least the 1116.25 to 1121.25 area by early tomorrow, which is the weekly pivot and a long term high volume level.
sledbug
on January 5 2010 at 23:18:39
Hi Bob
How long have you been trading?
I can’t beleive how accurate you have been
How did you know the market would be a small range day and not trend up? was it partly because over night was flat?
How do you enter trades? Do you put your order in a head of time? do you put like a 1 point stop, you mentioned you allow for a 2 to 3 tick break of a level or would you put a stop under the levels close by. If you wait to enter what time frame chart do you use?
I’ve been day trading for about 8 months and I have not found a good system yet. I keep getting chopped up, I miss the first hour every day taking kids to school, so I try to find a way in I usally get 1 point or so then the market reverses and stops me out I try to have at most a 2 point stop. I don’t know is that to tight of a stop?
Thanks for any help you can offer, John
Bob English
on January 6 2010 at 08:51:39
Projection for trend vs range is based on news items for the day, overnight gaps, seasonality, leaders movement, etc. Days after trend days typically consolidate. Yesterday was relatively slow news day and there were no major moves overnight.
We don’t go into execution because everybody has different psychology. Goal is to provide a roadmap to assist your own execution style. What constitutes a good stop depends on your profit objective. If you’re good at reading order flow, anything more than 3 ticks is unnecessary. I like to follow a 200 tick chart along with order flow and time and sales a bit. Expect to spend 2 yrs before you get a good feel for things. Study charts. Keep a trade journal. Read Brett Steenbarger. Don’t buy into hype because there’s no easy path. We’re competing against the best minds in the world. Another good person to follow is eminiaddict.com. For $30/mo., you get a trade room that’s better than most charging 10 x that.