Friday, May 31, 2013

ES TRADE PLAN FOR 05-31-2013




NOTE: Interested in learning how to become a consistently profitable trader?  I have an introduction to one to one coaching package that offers 3 one hour sessions for only $200.(NORMALLY $125/HR)  Its a great deal.  You can contact me at TRADENPERFORM@GMAIL.COM to set up a 15 min chat on skype to see if we match. The TESTIMONIALS tab is at the top of the page. 

Notice: This Blog & its contents are intended to be for educational purposes only & not to be construed as trading recommendations  in any way.  You should not follow anyone blindly.  Trading Futures & Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions are subject to change at any time.

ES TRADE REVIEW FOR 05-30-2013

ES had another fantastic trading range today & provided  excellent trade opportunities. The trade plan:  Today the plan calls to focus on the middle to back of the trade zones on first touch. When below the WHITE ZONE the focus is on the short side & when above the focus is on the long side. The plan is what guides me through the day & essentially sets up the highest odds trades.  That being said, price action plays a large role in fine tuning an entry or exit.  



1) ES opened at 1648, below the WHITE ZONE  OF 1650-1652.  My trade plan calls for a contra trade the first move up into the WHITE ZONE when opening below & 1650 offered excellent trade location & a potential 3 point rotation lower.  My trade model is predicated on the idea of taking two point profits & this was easily achieved.  Remember,  this is a business & all you need to build this business is one good trade.  

2) 1646-1648 was PRE-MARKET SUPPORT & responsive buys came into the market and drove ES through the WHITE ZONE & to the back of the 1654-1656.50  Resistance Zone.  The second time into any zone carries lower odds for a counter rotation & is the reason why I caution that second touch is a more advanced trade. In addition, buyers were now in control meaning that long trades on pullbacks now had the edge in term of probability.  The back of the 1654-1656 support zone (prior resistance becomes support once broken) provided good trade location and offered an easy 2 point scale/ target with a potential for a 6.5 point trade with the rotation up to the 1659.25-1661.25 Initial Resistance Zone.  (3)

When the market trades into Initial Resistance/Support I expect a larger contra rotation that normal & that is exactly what happened.  Unfortunately that setup came close to the last hour near the high of the day & above the 1st hour high.  My rules do not permit a short in that scenario; so I took a pass.  Those who did take the short had a nice payday.  

Again,  my focus & the focus of this blog is to highlight the highest odds trades generated by my chart. The location of the zones themselves is an edge.  It expect a pause in the market when these levels are reached.  Its not a system,  its part of a larger strategy of taking high odds trades and exiting and high probability targets.  for me its all about stacking chips day in day out.  If I can get two high odds trades a day for 2 points each I am pleased.   Wash Rinse Repeat. 

“He who is prudent and lies in wait for an enemy who is not, will be victorious.” 
― Sun TzuThe Art of War


NOTE: Interested in learning how to become a consistently profitable trader?  I have an introduction to one to one coaching package that offers 3 one hour sessions for only $200.(NORMALLY $125/HR)  Its a great deal.  You can contact me at TRADENPERFORM@GMAIL.COM to set up a 15 min chat on skype to see if we match. The TESTIMONIALS tab is at the top of the page. 

Notice: This Blog & its contents are intended to be for educational purposes only & not to be construed as trading recommendations  in any way.  You should not follow anyone blindly.  Trading Futures & Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions are subject to change at any time.

Thursday, May 30, 2013

ES TRADE PLAN 05-30-2013

Today the plan calls to focus on the middle to back of the trade zones on first touch. When below the WHITE ZONE the focus is on the short side & when above the focus is on the long side.  Good luck.



Notice: This Blog & its contents are intended to be for educational purposes only & not to be construed as trading recommendations  in any way.  You should not follow anyone blindly.  Trading Futures & Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions are subject to change at any time.

Wednesday, May 29, 2013

ES TRADE REVIEW 05-29-2013

1)  ES opened with sellers in control   The trade plan called for me to look for trades in the direction of control  at the middle to back of the zone on first touch.  Placing a short near 1649.50 provided excellent trade location for a possible 5 point trade.   If your familiar with my blog my highest odds trade is to target 2 points and close the trade.  I will post the up to date results of that model shortly.  Either way,  it would be hard to lose money with that trade placement with a reasonable stop. 



2) I pointed out at 9am that while buyers had control if we closed above 1649.50 on the five minute that I was expecting choppy conditions with a balanced profile. Importantly I said i was not taking trades in teh middle which at the time was the WHITE ZONE.    Just the same,  closing below the WHITE ZONE put sellers back in control and let you know to stand down from a counter trade for less aggressive traders.   When we reached 1640 I pointed out that we had an extreme in negative tick reading.  That this often indicated bottoms-at least near term are probable.  Also noted I would be looking for divergence for a possible long.  Thats exactly what we got at 10:10 central time for a beautiful rotation up to the back of the 1643.50-1645.50 S/R Zone. (3)   A potential 7.5 pt trade.   

The rotation up was capped at the first part of NY lunch & ES chopped around for 30 minutes before responsive sellers pushed down from 1645.50 down to 1640.  (4)On the second push down toward 1640 we had a positive tick divergence & a higher low.  This set us up for a strong move up and Responsive buyers pushed ES all the way up to the 1651.50-1653.560 Resistance Zone. (5)  Again,  I cautioned on twitter that we had seen a higher low and significant tick readings plus great tick divergence.  These were all clues that the low of the day was in.  This is part of the art of trading, see the clues that the game had changed.  In addition I sent a message to my coaching clients & later on twitter that I was in capital conservation mode.  That simply means I am cutting position size and only taking the best set ups.  I had a great morning and was not going to hand it back to the market.    

Buyers stayed in control the balance of the afternoon and pushes into the WHITE ZONE could be bought for rotations higher.  Only in the last 20 minutes did the rotations fail.  Again,  90% of the time I take no trades in the last hour.  Its just too hard to call on a daily basis.

On a coaching note.  Today was not easy,  the open was whippy and fast.  That is why discipline is key.  If you did not have a targeted exit you profit could have come & gone quickly.  Not having and respecting your stops could have run you over on the 2nd break of the WHITE ZONE to the down side.  Second and third touches into a zone carried greater risk.  I hammer focusing on  the highest odds trades because its critical to the learning process of a trader that you be positively reinforced with consistency in profits. If losses start to compile, there is no way to stay in a learning mode.  Its just a fight for survival.  

I hope all did well,  tomorrow is a new opportunity to repeat what you did well today and improve what was poorly executed.  Its an awesome thing that we get to start over every day. 


NOTE: Interested in learning how to become a consistently profitable trader?  I have an introduction to one to one coaching package that offers 3 one hour sessions for only $200.(NORMALLY $125/HR)  Its a great deal.  You can contact me at TRADENPERFORM@GMAIL.COM to set up a 15 min chat on skype to see if we match. The TESTIMONIALS tab is at the top of the page. 

Notice: This Blog & its contents are intended to be for educational purposes only & not to be construed as trading recommendations  in any way.  You should not follow anyone blindly.  Trading Futures & Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions are subject to change at any time.

MID DAY REVIEW ES S/R TRADE ZONES FOR 05-29-2013




1)  ES opened with sellers in control   The trade plan called for me to look for trades in the direction of control  at the middle to back of the zone on first touch.  Placing a short near 1649.50 provided excellent trade location for a possible 5 point trade.   If your familiar with my blog my highest odds trade is to target 2 points and close the trade.  I will post the up to date results of that model shortly.  Either way,  it would be hard to lose money with that trade placement with a reasonable stop. 

2) I pointed out at 9am that while buyers had control if we closed above 1649.50 on the five minute that I was expecting choppy conditions with a balanced profile. Importantly I said i was not taking trades in teh middle which at the time was the WHITE ZONE.    Just the same,  closing below the WHITE ZONE put sellers back in control and let you know to stand down from a counter trade for less aggressive traders.   When we reached 1640 I pointed out that we had an extreme in negative tick reading.  That this often indicated bottoms-at least near term are probable.  Also noted I would be looking for divergence for a possible long.  Thats exactly what we got at 10:10 central time for a beautiful rotation up to the back of the 1643.50-1645.50 S/R Zone. (3)   A potential 7.5 pt trade.   

I have gone into a protect equity mode for the balance of the day.  Simply means I am trading half size as I do not want to get whipped around.  A profitable day is a beautiful thing.  Think about it. 

NOTE: Interested in learning how to become a consistently profitable trader?  I have an introduction to one to one coaching package that offers 3 one hour session for only $200.  Its a great deal.  You can contact me at TRADENPERFORM@GMAIL.COM to set up a 15 min chat on skype to see if we match. The TESTAMONIALS tab is at the top of the page. 

Notice: This Blog & its contents are intended to be for educational purposes only & not to be construed as trading recommendations  in any way.  You should not follow anyone blindly.  Trading Futures & Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions are subject to change at any time.

Tuesday, May 28, 2013

ES TRADE REVIEW FOR 05-28-2013

1) ES gapped above the WHITE ZONE OF 1662.50-1664.50 opening at 1665.50 & driving to the back fo the 1666-1668 resistance zone.  This was a significant gap above Fridays close of 1650.75.  The WHITE ZONE WAS critical here.  It simply told me I did not have to worry about the gap fill as long as we held the WHITE ZONE.  No need to guess,  I knew buyers were in control.  As the focus of this blog is on the highest odds trades we will focus there.  ES was unable to drive into the WHITE ZONE for the first 10 minutes and there were no negative NYSE ticks.  Strength everywhere.  The trade plan called for focusing on trades setting up in the back of the zone.  The challenging part of trading is that occasionally you have to stray from the plan.  The first dip into the WHITE ZONE provided the best position to get long.  My targets is usually two points but in this case I was looking for a push to 1672 given the opening strength.  For those focused on simply staying consistent & growing their account; two points were easily achieved.


2) Responsive buyers were able to push ES out of the WHITE ZONE & past the 1666-1668 zone into Initial Resistance of 1670-1672.  I expect Responsive Sellers at Initial Resistance & for less aggressive traders with trailers this was an excellent point to exit longs. Once Initial Resistance is hit I am much more cautious on my long entries as I expect a larger counter rotation from these points.    Responsive sellers did step in slightly above the zone and pushed ES back down into the WHITE ZONE. 

3) The push back into the WHITE ZONE was the 2nd push down into the zone & called for caution.  In addition, heading into NY lunch can prove to be  a difficult time to pull off  a consistent trade.  Consistency is the key to growing your account.  ES Proceeded to chop from top to the bottom of the WHITE ZONE for the better part of 1.5 hours.  Its a great time of day to donate money to the market.  The best one can do is guess which way it will break.  I would be shocked if someone could guess right 90% of the time.  anything less than a 80% trade from a day trading standpoint makes you a loser by my numbers.  Hard to believe,  but that is what my data shows.  

4) ES resolved the chop party by exiting to the down side.  The point of the WHITE ZONE?  To keep me from getting run over in a directional move.  Traders for some reason think its easy to picking off counter moves in a directional move is easy.  I assure you its not.  Its very hard.  It is easiest to simply wait till the market gives you a nice counter trend move into resistance. 

5)  A picture perfect example of that came in the retrace to teh 1658.50-1660.50 resistance zone. ( Prior support = resistance). Responsive traders pushed ES right to ES to 1660.50.  Outside of being the last hour,  the set up was great.  Did I trade it? No, last hour does not support me taking new positions BUT,  the setup was otherwise perfect and had it occurred anywhere else I would have taken the trade.  Traders should commit the pattern to memory so you can act on it next time.  Bottom Line,  The WHITE ZONE simplifies trading decisions.  If you have traded for any period of time you have discovered how hard it is to stack the chips.  Anything you can do as a trader to get on the right side with less effort is a big EDGE.  Are there more trades here?  Yes.  Many many trades from swings to option setups.  It has massive potential.  But my charts single best feature is that if used correctly, it allows me to simply put a few points a day into my trading account.  1 good trade a day is all I need to grow my account.  The trade out of the WHITE ZONE is my number one trade.  

Notice: This Blog & its contents are intended to be for educational purposes only & not to be construed as trading recommendations  in any way.  You should not follow anyone blindly.  Trading Futures & Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions are subject to change at any time.



THE POWER OF THE WHITE ZONE

The WHITE ZONE serves on very simple purpose.  To determine who has control, buyers or sellers.  In the simplest of approaches,  a trader simply wants to focus on long setups above the WHITE ZONE & short setups below.  So the first clear concept is by understanding who has control, you can align their interest with your interest.  In the morning, when we gapped above the WHITE ZONE, a trader would know that taking a short was a lower odds proposition.  Even if a trader did not get long,  not being short saved you loss of capital, frustration & all the emotions that come from getting down early in the day.  As we approached Initial Resistance I tweeted that I expect Responsive Sellers at Initial Resistance & thats what we got.

Now take the same situation and flip it upside down.  Say you did not get short for what ever the reason.  By knowing that we were now trading BELOW the WHITE ZONE there was no need for any except the most aggressive to try longs.  Just by focusing knowing who was in control you did not step on a potential 9 point land mine.  Your not pulling your hair out.  Your just waiting patiently.  

Was there money top be made long below the WHITE ZONE & short above?  Yes,  but it was harder money and requires greater skill & discipline to execute those trades day after day.  Most can not do it without a great deal of experience.  Most traders lose money or break even in cycles of boom or bust.  The dream of making lots of money remains elusive until you can stack the trades and days together.  Think about it.  

NOTE: Interested in learning how to become a consistantly profitable trader?  I have an introduction to one to one coaching package that offers 3 one hour session for only $200.  Its a great deal.  You can contact me at TRADENPERFORM@GMAIL.COM to set up a 15 min chat on skype to see if we match.

Notice: This Blog & its contents are intended to be for educational purposes only & not to be construed as trading recommendations  in any way.  You should not follow anyone blindly.  Trading Futures & Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions are subject to change at any time.
Todays trade plan is again to focus on execution towards the middle to back of the zones on first touch.  Buyers will be in control off the open.  I will be looking for signs of a trend day up.

NOTE: Interested in learning how to become a consistently profitable trader?  I have an introduction to one to one coaching package that offers 3 one hour session for only $200.  Its a great deal.  You can contact me at TRADENPERFORM@GMAIL.COM to set up a 15 min chat on skype to see if we match.

Notice: This Blog & its contents are intended to be for educational purposes only & not to be construed as trading recommendations  in any way.  You should not follow anyone blindly.  Trading Futures & Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions are subject to change at any time.

Performance of 1st high odds trade since inception of blog on 4/19/13

Model is up 47 points per contract from the start of the blog last month. (APRIL 19TH) One well defined trade at a time. Obviously there are additional trades derived from my trade plan, i am only highlighting 1 trade. I am now only highlighting the first trade of the day due to the difficulty in making small alterations as the day goes on. The point is to show that all you need is one good trade with an edge. If you would like to learn how to trade like a pro you may contact me at: TRADENPERFORM@GMAIL.COM
Link to full spread sheet:        https://docs.google.com/spreadsheet/ccc?key=0Ap5hOyO4ONQLdEh4blB3aU81Smk0a1VBVFZZRnVqb2c&usp=sharing


NOTE: Interested in learning how to become a consistently profitable trader?  I have an introduction to one to one coaching package that offers 3 one hour session for only $200.  Its a great deal.  You can contact me at TRADENPERFORM@GMAIL.COM to set up a 15 min chat on skype to see if we match.
Notice: This Blog & its contents are intended to be for educational purposes only & not to be construed as trading recommendations  in any way.  You should not follow anyone blindly.  Trading Futures & Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions are subject to change at any time.

Monday, May 27, 2013

ES TRADE REVIEW FOR 05/24/2013

1) THE ES trade plan called for focus to be placed on the back of the trade zones on first touch. The WHITE ZONE was originally placed at 1645.25-1647.50. ES opened at  1639.50 & pushed up into the 1641-1643 ZONE.  Responsive buyers stepped in at the middle of the zone & pushed down to the 1636.25-1634.25 zone.  A trade placed from the middle of the 1641-1643 zone yielded a potential 7pt + potential trade and easily hit the 2 points a day I so often talk about on my blog.  All you need is one good trade to build an account.  That is it.




2) Responsive sellers were able to push all the way to the back of the 1636.25-1634.25 Zone where responsive buyers stepped in once again.  Again,  For traders with less aggression the idea is to only trade in the direction of control & only on first touch.  More aggressive traders may choose to trade both directions regardless of control but the risk of a losing trade grow significantly.  The same goes for 2nd & 3rd touches into a zone.  Responsive buyers were able to push ES back above Globex lows & back into the 1641-1643 zone.   I tweeted out that the WHITE ZONE should be moved down from 1645.25-1647.53 to 1641-1643.  In addition I mentioned on twitter that the close above 1643 on a 5 minute bar put buyers in control & trap late shorts.  My focus now would be on the long side.

3) After chopping around for the better part of NY lunch buyers pushed ES up to 1645.25-1647.53 resistance zone. 4) The back of the zone found sellers who were able to eventually push down to the top of the 1641-43 zone.  While on paper the push up & the push back down looked pretty easy I would argue that it was mentally very difficult & required a great deal of discipline to execute.  Both trades simply chopped for an hour or more.  It is exactly this type of environment that chops traders accounts to bits.  Nerves build up over time & small gains are taken by many at best, the trade is entered & exited many times by less disciplined traders racking up unnecessary & painful losses at the end of the week.

4) Finally, Just an example of why I do not fade the last hour.  With 30 minutes to go till the old 3:15 close shorts started to scramble with ES moving up 7.75 points to close on the high of the day.  It also demonstrates the power of the WHITE ZONE.  By knowing who had control & adhering to a  less aggressive risk profile you free yourself from these kind of hits which take a toll not only financially but also emotionally.  Maybe its worth considering.

Looking back on the end of the day my focus & discipline were well rewarded. Did I get every trade? no.  I did however get enough of my setups to top off an excellent week.  Trading like a professional does not mean capturing every move nor does it mean getting every trade right.  It does mean knowing yourself & just how much risk you can financially and emotionally handle.  It means trusting yourself to follow your own rules, what ever they may be.  It is also KNOWING you have an edge.  That means stats are carefully taken, attention to small details, carefully journaling my trading decisions both numbers wise & emotional responses to my decisions.  I do this on good days and bad days.  That is how I survive & thrive as a professional trader.  Its not easy & it takes work but it allows me to accumulate profits and get to play in the market every day.  Wouldn't you like to have that for yourself?  

There are methods & steps to attaining this type of performance.  If you are serious about getting your trading to a consistently profitable level  & are tired of losing money or trading in cycles of boom & bust you may consider contacting me. Individual coaching can be highly effective in setting you on the path to success & ending destructive patterns in your trading.  I offer an introductory rate of $200 for 3 one to one coaching sessions that have helped many get on the path to consistent profitability in trading.  You may contact me at TRADENPERFORM@GMAIL.COM

Notice: This Blog & its contents are intended to be for educational purposes only & not to be construed as trading recommendations  in any way.  You should not follow anyone blindly.  Trading Futures & Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions are subject to change at any time.


Friday, May 24, 2013

BEFORE/AFTER S/R TRADE ZONES FOR 05/24/2013

TRADE PLAN IS TO FOCUS ON THE BACK OF THE TRADE ZONES ON FIRST TOUCH. ALL YOU NEED IS ONE HIGH ODDS TRADE TO GROW YOUR ACCOUNT

NOTE: Rates have gone up for my 4 session introductory coaching sessions.  I will honor the $200 for 4 sessions of 1 on 1 coaching till Sunday Night 11:59 PM central time.  Its an amazing value.

Notice: This Blog & its contents are intended to be for educational purposes only & not to be construed as trading recommendations  in any way.  You should not follow anyone blindly.  Trading Futures & Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions are subject to change at any time.

ES TRADE REVIEW FOR 05-23-2013

The Plan for the day was to focus on the middle to back of the  S/R TRADE ZONES to account for the increased volatility in the market.  The primary concept of the trade plan is the WHITE ZONE.  Above the WHITE ZONE buyers are in overall control and sellers below. ES opened below the 1638-1640 WHITE ZONE  placing sellers in control.   1) The Back of the WHITE ZONE offered great trade location for a 6 point rotation to the downside.  Remember all you need is one solid trade a day to build an account and my highest odds strategy I discuss here often is predicated on 1 high odds trade for 2 points.



ES was unable to reach Initial Support and Responsive buyers were able to push ES back up & through the WHITE ZONE.  Each time a zone is tested the odds of a successful counter-rotation diminish. I often will  choose to focus my efforts on only the highest odds trades.  2) Buyers pushed ES all the way up to the  1644.50-4646.50 PREMARKET RESISTANCE ZONE where again the middle to back of the zone provided great trade location.  Again,  this provided a 6 point rotation lower back down to the WHITE ZONE. 3) The push down into the WHITE ZONE was the first since buyers gained control & the same set up again provided great trade location for what became an eventual 15 point rotation higher to 1654. 4)  There was one final clean set up for the day on the first test down into PREMARKET RESISTANCE ZONE after it was broken to the upside.  Again the middle to back of the zone  provided great trade location for a potential 9 point rotation higher.

Quick note,  I experienced a technical issue & lost the EOD data.    ES Chopped around from approximately 1648-1652.  If you have followed me for any amount of time, you know I am no fan of the last hour.   All in all a fantastic day. Would be nice to keep a two sided market like this for a while.  Hope everyone did well.  Again,  Sorry for the delay in posting the review.  Off to put together today's trade plans.

NOTE: Rates have gone up for my 4 session introductory coaching sessions.  I will honor the $200 for 4 sessions of 1 on 1 coaching till Sunday Night 11:59 PM central time.  Its an amazing value. 

Notice: This Blog & its contents are intended to be for educational purposes only & not to be construed as trading recommendations  in any way.  You should not follow anyone blindly.  Trading Futures & Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions are subject to change at any time.
  

Thursday, May 23, 2013

ES S/R TRADE ZONES FOR 5-23-13

Notice: This Blog & its contents are intended to be for educational purposes only & not to be construed as trading recommendations  in any way.  You should not follow anyone blindly.  Trading Futures & Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions are subject to change at any time.

Wednesday, May 22, 2013

ES TRADE REVIEW FOR 05-22-2013

WOW,  what a day.  I am going to do a quick review but there was simply too much to go over every blow by blow.  Before i do that though,  Let me go over some basic concepts.   

1) WHITE ZONE.  When trading above, buyers are in control.  This is designed to protect me.  I am focusing primarily on longs & being very cautious on taking shorts.  Just the opposite when below the WHITE ZONE.  


2) Initial Resistance/ Initial Support  I expect responsive buyers or sellers to step in at these zones and make a significant push in the opposite direction.  Does it happen always, no, but it happens often.   When these zones are placed at new all time highs they are based on calculations & are therefore not as accurate as other zones.


Once one of these zones are hit,  I am much more cautious of taking a trade in the direction of control without a significant counter rotation back towards the WHITE ZONE.  


3) The first time into a zone has the highest odds for a small counter rotation up.  When I say small I mean 5 to 8 ticks.


4) Trade location.  The most aggressive location to place a trade is at the front of the zone.  The least aggressive point to place a trade is at the middle to back of the zone.   The farther back you can place the trade, the least amount of risk you have to take to see if the zone will hold.  


The location of the zone itself is an edge.  

I am only going to cover the highlights of today because i could write a book on the trading that took place today.  If you have a specific question, please hit me on twitter or email me.


So, anytime you have the Fed Chair testifying it can be a HARD day to trade.  I dont like hard days.  I actually like easy.  I could live the rest of my life without another FED day.  Secondly,  there is alot of fantasy about days like today.  Most traders don't catch these moves;   the size of rotations exploded and the speed of the moves accelerate. The stops that work for you most days just handed you losses today. If your not accurate with your chart work the market will punish you with moves against you for early entry. Most of the good patient traders I know made money, a few hit home runs. Everyone else who was even off a bit with their entries and exits had a alot of stops & frustrations.  


I mentioned early on that not trading on a fed day was totally acceptable and maybe even advisable.  I was certainly slow to pull the trigger myself.  All that being said, I am going to hit the highlights tonight and leave it at that.






  


1) ES opened in the 1667.50-1669 zone & imminently drove higher up into Pre Market Resistance.  Responsive sellers were able to drive ES down from the middle of the zone to 1670 but it was short lived.  Everyone was waiting for BEN.  It was simply advisable to wait it out. As soon as Ben said good-morning it was off to the races.  Since we were above the WHITE ZONE the focus was on longs until Initial Resistance at 1681-1683.  We hit the back of the zone with a +1000 tick & the final push up & high of the day came on a negative tick divergence which often leads to fantastic trade location.  Again,  the zone was a calculation done prior to market open & was very close to nailing the top if not exact.  

2) Since we had hit Initial Resistance zone this was a good location to close out any trailing longs & for aggressive traders to initiate shorts.  I am very reluctant to take longs once Initial Resistance has been hit without a significant move lower.  You had to pay attention to the rotations.  We traveled up 20 ES points from the prior days close so a five or 6 point rotation down was not going to do anything for you.  You needed to think in variables of 10's.  The back of the WHITE ZONE would give you a approximate rotation down of 12 points.  A little more than half of the move up.  


3) From the back of the WHITE ZONE, which by the way this was the first test since leaving, ES rotated all the way back up to the front of Initial Resistance at 1681-1683. (4)  Again,  this was a 10 point rotation up.   Again,  I expect sellers to come in at Initial Resistance until they dont.  Each time a zone is hit the odds of the counter rotation fall but the odds are still there.  


5) From here ES eventually worked its way down to the white zone.  This was the 3rd test of the White Zone and there was no meaningful tick divergence and we have been in the process of setting lower highs and we just saw the smallest rotation up fo the entire  1st half of the day.   


6) Once the WHITE ZONE was broken,  all my focus shifted to the short side.  The WHITE ZONE primary purpose is to protect me.  There was no reason for me to think long below without significant compelling reason.  Initial support at 1660 -62 would be a logical place to look for a turn.  Unlike the Initial Resistance, Initial Support has been tested several times, once we closed below on a five minute bar it was broken.  A tight stop behind the zone was all that was needed to test if it would hold. Once broken the first upside test gave excellent short location for what turned out to be a 12 point move lower to 1646-1648. I pointed out going into the last hour that trading this time of day can be very difficult  I skip it.  My guess is many traders got burned either playing for counter rotation up or stung by the rotation up at the end of the day when panic sellers did not materialize and ES pushed up 10 points.  


Money goes quick in an environment like this.  Know what your high value trades are and focus on those locations.  Don't get caught up in the moment to moment action.  Simply knowing what side to focus on combines with trade location is a HUGE EDGE.   


 “You’ve got to think about big things while you’re doing small things, so that all the small things go in the right direction.” 
― Alvin Toffler


NOTE: Rates have gone up for my 4 session introductory coaching sessions.  I will honor the $200 for 4 sessions of 1 on 1 coaching till Sunday Night 11:59 PM central time.  Its an amazing value.   

Contact: TRADEnPERFORM@GMAIL.COM


Notice: This Blog & its contents are intended to be for educational purposes only & not to be construed as trading recommendations  in any way.  You should not follow anyone blindly.  Trading Futures & Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions are subject to change at any time.


THE POWER OF THE WHITE ZONE & INITIAL SUPPORT

Want to see why the WHITE ZONE  & Initial Resistance/Initial Support  zones give me such a big edge?

1) Most importantly the WHITE ZONE tells me who has the stronger hand; buyers above & sellers below.  Even if you took a short in front of the FED CHAIRS chat,  which is so extremely aggressive, It gave an tight point for entry & cover.  Then,  assuming I did not get long.  I had no incentive to even consider short until Initial Resistance.  None.  I now know that my highest odds location will be between 1681 & 1683.  THATS 8-10 POINTS WHERE I TAKE NO LOSERS TRYING TO FIND A SHORT.  NOT ONE.  For more aggressive traders,  I know that when we get to Initial Resistance that I have high odds of finding Responsive Sellers & I don't have to bury my account getting repeatedly stopped.




 2)  In its simplest form that means that the most reserved traders have a good point to exit any trailers &  only look for longs after significant rotations down.  For aggressive traders it means watching price action and the NYSE TICK for signs of a clean short entry entry.  The back of the zones always offer the highest odds of a successful counter rotation and a tight risk reward location.  If you took a short at the back of INITIAL RESISTANCE you had less than 3 points of heat and a potential 11-13 point trade.  More reserve traders can now look lower for high odds longs at lower levels.

3)  The move into the WHITE ZONE offered excellent trade location for longs from both the front and the back of the zones.  It also gave aggressive shorts an excellent place to close out trailers. Longs in this zone offered 8-11 points of rotation up depending on long location.   ES rotated right back to the 1681-1683 Initial Resistance which again offer longs an excellent exit point and aggressive shorts fantastic trade location. for a Move back down again to Initial Resistance.

This is a quick and brief description of how my approach to trading is a massive EDGE. If you would like to learn to trade like a professional trader & have the same edge contact me at TRADENPERFORM@GMAIL.COM  The rate I charge for the first four coaching sessions is going up on midnight central time Sunday evening.  I will honor the $200 for 4 one to one sessions till then. I hope everyone did well and had a great day.


Notice: This Blog & its contents are intended to be for educational purposes only & not to be construed as trading recommendations  in any way.  You should not follow anyone blindly.  Trading Futures & Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions are subject to change at any time.


Tuesday, May 21, 2013

ES TRADE REVIEW 05-21-13

1) ES opened at 1665.75; in the middle of the 1665-1667 zone. With the WHITE ZONE below at 1661-1663 buyers were clearly in control.   This information was critical to the opening sequence as deciding weather or not to fade the open can have a big impact on your day.  





In following the highest odds strategy, the plan calls for not taking shorts when trading above the WHITE ZONE.  It prevents traders from getting run over. Half the battle of trading is not taking a string of losses.  A loss averted is the same as a winning trade to me.  

2) Buyers drove ES up aggressively through the top of the zone.  In a drive like this,  the first zero tick will often provide and excellent entry point 7 today it was just that.  The move back to 1667 coincided with a zero tick reading and set up a solid trade to the long side with a potential 2-3.5 point target. 

3)  Buyers made one last push higher into the Initial Resistance Zone of 1669-1671 & giving longs who entered at 1667 an excellent opportunity to exit their longs.   I expect responsive sellers at Initial Resistance & I tweeted that I would not be taking long setups on rotations lower.  For aggressive traders this zone offered excellent risk reward for a short side play.  Sellers pushed ES back down to the 1667-1665 zone.  Again,  I was not looking for longs as I expect larger rotations down & up from Initial Resistance/Support Zones. 

4)  Sellers were able to push all the way down to the 1663-1661 Initial Support Zone.  Again, I expect responsive buyers at Initial Support and the middle to back of the zone offered excellent location for longs.  After a bit of chop buyers were able to drive ES all the way back to Initial Resistance & passed during the lunch period. I tweeted that I would not be taking any shorts prior to the push up into Initial Resistance.  It was the second time into  the zone which means its a lower odds trade; normally requiring additional support to take a counter trade. It was also time of day & price action indicated to me that shorts wee on the run.   Lunch time is the hardest time of day to put on a trade & make money consistently outside of the last hour. Always looks easy afterwards but almost never is.  

This scenario has been played out multiple times over the past month.  We find sellers, they push down hard 10-20 points & buyers come in and push all the way back up.  As usual- late comers in both directions were smoked, as it should be.  

5&6  Buyers were finally worn out on the second push up to 1673.25.  3 ticks shy of the 1674-1676 resistance zone.  These zones are a bit less reliable as they are calculations only- we have never traded here before.  Responsive sellers pushed ES back down to 1669-71 zone and chopped before finally pushing down to 1667-1665 zone on the close.  

Personally I dislike afternoon trading.  My numbers say its harder and the chop in the 1669-71 zone bare that out.  Few traders have the ability to withstand the chop and pushes up to grab the reward at the end of the day.  I did tweet that if we close below 1669 on a 5 minute bar that the market would find additional sellers and we did.  That came in the last hour and its just not in my trade plan to take trades there.  Too many things can go wrong.  For those who did catch it- nice job.  

Well, I am wiped.  Basically nailed the high & low of the am session & did not get run over in the open drive.  If you can do that successfully and simply wait for good risk reward location entries you should be able to make money. Another day and trade location trumps all-again.  Tomorrow we get to do it all over. 

If you read this blog & have made a profit from the zones, please donate to an organization that helps humanitarian efforts in the US or around the world.  There are many who are not blessed with the opportunity to do what we do.  Please give back. 

NOTE: Rates have gone up for my 4 session introductory coaching sessions.  I will honor the $200 for 4 sessions till Sunday Night 11:59 PM central time.  Its an amazing value.   

Contact: TRADEnPERFORM@GMAIL.COM

“We make a living by what we get, but we make a life by what we give.”
Sir Winston ChurchillNotice: This Blog & its contents are intended to be for educational purposes only & not to be construed as trading recommendations  in any way.  You should not follow anyone blindly.  Trading Futures & Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions are subject to change at any time.

    




SPY S/R TRADE ZONES FOR 05-21-2013

TODAYS $SPY S/R TRADE ZONE.  PRIOR SUPPORT=RESISTANCE.  THE WHITE ZONE DETERMINS WHO HAS CONTROL, BUYERS ABOVE, SELLERS BELOW.  IN MY HIGHEST ODDS STRATEGY, FOCUS ON LONGS ABOVE THE WHITE ZONE & ON SHORTS BELOW THE WHITE ZONE.  I IDENTIFY TURNING POINTS THROUGHT THE DAY & TWEET OUT WHEN TRADING WITH DIRECTION OF CONTROL IS NO LONGER A GOOD IDEA.  PLEASE FEEL FREE TO CONTACT ME VIA TWITTER OR AT:  TRADENPERFORM@GMAIL.COM 





Notice: This Blog & its contents are intended to be for educational purposes only & not to be construed as trading recommendations  in any way.  You should not follow anyone blindly.  Trading Futures & Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions are subject to change at any time.

ES TRADE ZONES FOR 05-21-13




Notice: This Blog & its contents are intended to be for educational purposes only & not to be construed as trading recommendations  in any way.  You should not follow anyone blindly.  Trading Futures & Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions are subject to change at any time.

Monday, May 20, 2013

ES TRADE REVIEW FOR 05/20/2013

1) ES opened & quickly 1662.75 drove to the back of the WHITE ZONE and closed above 1665.  This put buyers in control.  Sellers then quickly stepped in & quickly pushed ES back down to 1662.50. This type of whipy action can often cause quick losses. If traders took the short towards the back of the WHITE ZONE  a two point target was easily achieved.  For those who took the trade in the middle of the zone still had opportunity for a small profit. For the purposes of the model I will count this trade as a 3 point loss, but most should have realized some type of profit or break even trade.

Responsive buyers came back in at the 1662.50 level & once again drove ES up through the back of the 1665-the top of the WHITE ZONE.  Once above 1665 buyers kept control & proceeded to drive ES up to 1669-1671 resistance zone.




1669 -1671 found responsive sellers.  I pointed out over twitter that we had tick divergence on both the 5 & 1 min time frames. In addition .buyers pushed ES to the back of the resistance zone.  The back of the zone often provides a high odds point to take a counter trade.  This would mark the high of the day & sellers were able to drive down ES down 10 to 1661.  The zones by themselves offer excellent trade location.  You don't need any trailing indicators.

As tweeted while we were up at 1669-1671 zone, 1665 held the key for the day.  Once below buyers were never able to make a significant drive higher.  As we entered the last hour ES was trading right at 1665 and chopped for the entire hour. I pointed out on twitter, 8 out of 10 days,  the last hour is just  chop.  Most can not navigate it successfully.   Why risk taking on losses without a clean opportunity & time to let it play out.  Losing money in the last hour sucks.  Do not let it happen to you. 

Coaching que: The purpose of the WHITE ZONE is to keep a trader from fighting a directional move up or down.  Many traders dig large holes looking for a reversal point that either never comes or comes from much higher levels.  If you did not take a short once buyers established control your account should be in fine shape. If on the other hand you kept shorting above the WHITE ZONE by the time the market finally did reverse you needed the entire move down to get break even.  Its not likely that many traders rode a short position into new highs & mentally was able to withstand the pressure to cover. By understanding control you don't have to place yourself in a hole.  It frees you to wait for the next setup.

No quote tonight.  My hart goes out to the people of Moore Oklahoma.  I feel blessed tonight to tell my daughter & wife I love them.  But for the grace of GOD go I . Prayers for all who lost loved ones. 


Notice: This Blog & its contents are intended to be for educational purposes only & not to be construed as trading recommendations  in any way.  You should not follow anyone blindly.  Trading Futures & Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions are subject to change at any time.




TRADE ZONES FOR 05/20/2013

HAVE A PLAN & EXECUTE IT WELL.  ITS ABOUT STACKING CHIPS & NOT ANY ONE DAY OR ONE TRADE.  ALL YOU NEED IS ONE HIGH ODDS TRADE TO GROW YOUR ACCOUNT!


Notice: This Blog & its contents are intended to be for educational purposes only & not to be construed as trading recommendations  in any way.  You should not follow anyone blindly.  Trading Futures & Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions are subject to change at any time.



Sunday, May 19, 2013

ES TRADE REVIEW FOR 05/17/2013

ES opened at 1654.75, just above the WHITE ZONE.  The WHITE ZONE determines control; buyers above sellers below. The open above the WHITE ZONE established that buyers are in control & in my least aggressive model would dictate taking longs only. The first dip into the WHITE ZONE provided great trade location.  (1)Responsive buyers were found on the first dip in & quickly rotated up to 1656.50.  It was difficult to get all 8 ticks.  Tweeted that if you took the trade long you might want to consider taking 7 ticks.




2) Sellers came back in at 1656.50 & pushed ES to the back of the WHITE ZONE. When buyers are in control shorts are not considered.  Responsive buyers were found at the back of the WHITE ZONE.   The back of the zones is also a high odds trade location the first time back & an excellent risk reward location.  Responsive buyers  pushed ES back up through the top of the WHITE ZONE & up to the 1667.50-1659.75 INITIAL RESISTANCE ZONE.  This provided anyone who took a long for multiple scales or a clean 2 point target.  Again, I emphasize the 1 or 2 trades a day for 2 points each is all you need to build a trading account.  

3)   I expect responsive sellers the first time into initial resistance and after 50 minutes testing the zone responsive sellers were able to push ES back down to that 1654.50-1652.50 WHITE ZONE; where responsive buyers where found once again.  Each time ES pushes down or up into a zone, the odds of a meaningful rotation up decrease.  There is often a trade on the 2nd & 3rd push down but its a more advanced trade with greater risk.  The highest odds model calls for taking the first trade & passing on everything else.  

4)   The second push up out of the zone gave a 2-3 point profit point and began chopping between 165450 & 1657.75.  This type of activity is often where traders give back or lose a tremendous amount of money trying to catch a directional move.  The purpose of the trade zones is to provide high odds trade location.  The location is the edge.  Taking trades outside of the zones dramatically reduces the odds of a successful trade.  For me it is simply not worth it. Its all about stcking the chips on a daily basis.

5) After hours of chopping around buyers were able to push ES back into Initial Resistance .  This is a perfect example of a) when trading above the WHITE ZONE only focusing on longs & B) each trip into a zone lowers the odds of a successful counter rotation.  It is also an excellent example of why taking a counter trend trade in the last hour is not a high odds trade.  Again, stacking trades is what this is all about & the higher odds your trade the better chance you have of doing this.

6) Buyers pushed all the way to 1663-1665  resistance zone where buying was shut off.  Shorts, for the umpteenth time had their clocks cleaned.  Longs were again rewarded. This market is going up until its not.  Pure & simple.  It will be obvious when the market gets weaker.  If you miss the first day wouldn't that be better than getting killed look for a top the last 30 days.  No top picker has been right.  Not 1.  

What I present here is a way of looking at the market that helps position your trades in high odds locations. There are multiple trades available based on the zones & I focus on the highest odds trade locations in this blog. If you would like to learn how to trade like a professional feel free to contact me.  I offer very reasonable rates for 1 to 1 coaching & a 4 session package in a group setting to learn how to use the zones along with the skills needed to build a trading account.  The package is only $200; 4 ES points.  You can contact me at TRADENPERFORM@GMAIL.COM . 

One reason so few of us achieve what we truly want is that we never direct our focus; we never concentrate our power. Most people dabble their way through life, never deciding to master anything in particular.
Tony Robbins 


Notice: This Blog & its contents are intended to be for educational purposes only & not to be construed as trading recommendations  in any way.  You should not follow anyone blindly.  Trading Futures & Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions are subject to change at any time.