(2) A long setup was trigered with that close above 1620 but you would have had to be filled on the bid. For the purposes of this blog, that is considered a no fill. However, there was still a victory here. I consider a set up that helps me avoid a loss a winner. Knowing to cover the short is priceless. Instead of having a 3 point loss (the stop I use for this blog) I had a 1 tick loss. I know there will be more setups in the coarse of the day & the days to come. Its my mindset that I never miss a trade, I am never compelled to chase. If I had a better way of figuring out we were going up earlier & I could have gotten long earlier & reliably; I would have done so. I did my job by following my rules, therefore, a successful sequence.
The market continued its trek up to 1622-1624 which i had market as initial resistance. Again, we are trading above the WHITE ZONE that places buyers in control. Shorts are passed on in this scenario. I want to trade in the direction that makes my odds highest for this trade. This is a perfect example of why this is called for. While ES paused in the 1622-1624 zone; it was just a pause. There was almost no way to enter a short position here and not take a loss. Again, not taking a loss is a win for me.
(3) ES traded above 1624 triggering another long set up. Again, do to the lack of rotation lower, there was no opertunity for a ling fill at or in the zone. Nothing to do. (4) ES did finally trade back into the 1622-1624 zone. I passed on the trade. It was almost the last hour which is a very tough hour to trade in; there is ALOT of air below these levels (reference to yesterdays 10 point drop mid morn) & I had no cushion on the day to work against. Did the trade work? Like a charm! But I really don't care about any one trade & I am having a challenging time reading the PA other than to say it is strong as hell.
Buyers did step back in on the 1st dip into the 1622-1624 zone and rallied into the close. The buying shut off just 2 ticks in front of the 1630-1632 resistance zone.
At the end of the day, trade location provided an obscene edge. You don't need lagging indicators, fundamental news or anything else. Trade location + knowledge of control + ability to exploit your edge is huge. You only need 1 high odds trade to make it in trading.
I fear not the man who has practiced 10,000 kicks once, but I fear the man who has practiced one kick 10,000 times.