Trade plan and Price action review: (Price action) The day opened and we pretty much chopped around all morning. The market tested up into the 1322 chvn and the globex highs just before the figure released. We traded down breaking the IBL and started trading into the previous day's range and bounced off of the vpoc at 1315.50 back up into the IBH where sellers were active once again and they pushed down into the 1314.1316 level where the market went into chop mode for a few hours. We broke down a little bit testing the globex lows at 1312 where we bounced. This was a good area to look to get long. The bounce was weak but we were able to trade back up into the IBL were sellers were active once again pushing ES down below the day’s value area and closing below value. Vpoc stayed in the same area as yesterday and the sellers seem to still be in control of this market.
(Trade plan) As per my plan the market did balance in front of the econ release that was really not a surprise. Sellers were active on the push up into the 1322 level I have on my chart. I identified the 1310-1312 level as strong support and was looking to be a buyer there. The buyers were there and I wasn’t around lol. Maybe next time.
Trades review: (Hypothetical) See 5 min chart with black circles
(Actual)
1st trade: I went short on a break but price wasn’t acting the right way for me to stay in the trade so I bailed. The market did follow through to my target but when its choppy I don’t like sitting in a trade.
2nd trade: I went long but I was a little bit early. Perhaps I jumped the gun a little bit. I got out of one lot for +5 ticks and BE on the second. I had to go outside otherwise I would have held it longer because the 15.75 level was offering good protection for my stop. Market ended up hitting my target at 1318.25 (61.8% retrace level).
3rd Trade: I got short at the IBL and the 61.8% retrace level. Price was acting right and I was at my level and we had already rejected that area a few times so I took it. I got out of 1 lot at first target of +2 points and the second I let run to +3.5 points. Nice trade.
Conclusion of the day and thoughts going forward: The day was really choppy once again so I stayed patient and was prepared to not make a trade at all if need be. I waited for the opps to come to me. There was a few opps in the morning but the figure was due out at 10AM and I didn’t want to enter a trade in front of a release. I stuck to my plan and I got paid for it. I think I have finally made the turn. I am starting to see trading in a different light now. I’m realizing that it’s just a matter of discipline and having a plan and following it but at the same time being flexible with it. The market can do whatever it wants but that doesn’t mean that you can’t be prepared to react no matter what the direction is that it wants to go.
I need to see how I will react to a few bad trades. That will be the real test.
Grades:
Following my plans: A+
Following my rules: A+
Trade execution: C+
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