Monday, April 29, 2013



ES opened the day  just above the 1579.50-1581.50 WHITE ZONE.  The WHITE ZONE delineates control between buyers & sellers.  Buyers are in control above and sellers are in control below.  Opening just above the WHITE ZONE a trade was triggered on first touch down into the zone. (1)  Depending on your risk tolerances and aggressiveness there were two valid entries on the long side. Front of the zone is most aggressive and back of the zone is the highest odds. The back of the WHITE ZONE printed the low of the RTH session to the tick and for those wanting to swing trade or use a trailer, you had an 11 point + rotation to the high of the day with no heat.  Per the strategy discussed here buyers at the front and the back of the zone had easy 2 point rotations for a nice trade.

(2) Per the highest odds strategy I am discussing on this blog,  shorts are to be avoided in general  when buyers are in control  instead using zones above to scale if a trader has the ability to carry a trailer from lower levels.  The approach to the 1583.25-85.25 highlights why.  Had you shorted the front of the zone you had to cover for a loss-small or big was the only question.  Even the back of the zone proved to be a challenging short.  2 points would be hard to come by.  The easier trade and higher odds trade was to simply wait for the zone to be penetrated on a 5 minute bar and long the first test back.  That exact opportunity presented itself again & the long gave a nice rotation up to the 1587.25-89.25 zone for a 2 to 4 point rotation.  Again,  the most basic strategy calls for an exit at 2 points.  Anything more is just gravy as far as i am concerned.

(3) The third & final trade of the day set up when ES traded above the 1589.25-1591.25.  The close above the zone on the five minute triggered a long trade on first trade back in for a rotation up to the 1591.50-93.50 which was also noted as the days initial resistance. The 3rd and last trade was good for a 2pt rotation.   I would normally expect to find sellers at initial resistance and am at least going to close out a long there and look for shorts.

There were several clues that buyers were in control today.  These are important clues one should look for daily.  1)  No gap fill, sellers weak out of the gate.  2) small rotations lower and big rotations higher-always measure the size of the rotations for the clues. 3) TICK never registered greater that -200 until late in the afternoon.  If you know what to look for the market will tip its hand.

So there were 3 opportunities for long trades and 3 wins.  I followed my trade plan and my focus was on execution.  This is the essence of growing your capital and building wealth.  Its not a trick.  Its just focus and disciplin   Anyone can do it.  If you would like help, contact me.


“You can be sure of succeeding in your attacks if you only attack places which are undefended.” 
― Sun TzuThe Art of War

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