Wednesday, May 18, 2011

End of day review 5-18-11 Wednesday


Trade plan and Price action review: (Price action) ES opened and tested the globex lows area on a bullish macro structure. That was the entry of the day to ride out to at least to the globex highs. Responsive buyers were active on that push lower and they took the market up above the previous day’s highs where I tried my long but ended up taking BE scratch. We found support at the previous day’s highs and the market took off breaking the IBH and consolidating above it for a little bit. The market ranged with the low of the range at globex highs which was another good area for longs after that we kept making a series of higher highs and higher lows so no need to fight the trend up. Value shifted higher with the vpoc shifting up throughout the day and placing higher above the past 3 sessions. The bulls are back in control and I expect PBs into support areas to be bought by responsive buyers. We are still in the bigger balance area of the past few weeks and the bigger picture is still bullish with the recent action being a consolidation in an up trending market.
(Trade plan) As for my trade plan review I was looking to be a buyer/seller at my levels. I was expecting a mostly balanced session and instead we got a trend day lol. That’s ok can’t win them all. I was looking for rotation above globex highs and was going to trade them as scalps and that would have worked a few times. The biggest expectation I had today and the biggest reason I’m a little upset is that I completely missed what I put in my morning trade plan and that was the bullish macro structure set up. The market tested the globex lows perfectly and shot up from there. That is a perfect example of the macro structure playing out. But the set up also has to be in context as well and today was a great day to trade that. I have to read my trade plan once again before trading after I sit down when the cash market opens. Work is my biggest issue right now. I have been tied up a lot the past week or so and I find myself not having the time to relax and concentrate on what I want to do for the day or what I expect to see happen for the day. Anyway I guess its better than trying to trade full time and not being consistent yet…
Trades review: (Hypothetical) See 5 min chart with the black circles.
(Actual)
1st trade: I tried a long this morning after the buying came in and broke above the previous day’s high. I was a little too early on this trade so I took a little heat but the trade ended up going for me and hit my 2 point target but didn’t fill. That really sucked ass. So I took the break even stop because it’s one of my rules to go to BE after 2 points in front. It has saved me more time than it has hurt me. Perhaps I will change that rule later on because I saw a clear reason to add to my long or at least keep my stop where it was at. The reason was the buyers were in control after testing the globex lows area on a VB div and pushing back above the open print. It was a good reason to stick with the trade.
Conclusion of the day and thoughts going forward: There was a few opps to join the trend day that developed today. I was mostly busy with work stuff so I didn’t have the time I needed to concentrate on the day. It was a little frustrating to see the market go higher without me but today is a great example of how I need to detach myself from what the market is doing. In other words I shouldn’t care one bit what the market does without me in it other than for analysis reasons. Also my entry on my one trade was a little early. It was clear as day to wait for a min or two longer and bought on the PB into the previous days highs.
Grades:
Following my plans: A
Following my rules: A
Trade execution: C



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