ES TRADE REVIEW FOR 05-02-2013

ES opened above yesterdays 1579.25 - 1581.25 WHITE ZONE off the open indicating that buyers are in control. (1)  It also set up the first long trigger according to my trading rules on the first dip into the WHITE ZONE.  ES dipped to 1580.25 where it found responsive buyers who drove it to the  1583.50 to 1585.50 resistance zone.  This provided my trade plans 1st 2 point exit & the entry point turned out to be near the low of the day in what turned out to be a trend day up. Traders who left a trailer or who were able to identify the trend day had a very nice day.  Obviously there are many strategies that can be used with the S/R zones.  I simply focus on 1 high odds strategy in this blog among several that I employ.

Quick review of indications of probable trend day:  1) Gap above WHITE ZONE indicating bulls were in control  2) Failure to fill gap 3) No negative tick reading greater that -200 & 4) rotations down were very small relative to the rotations up.  It is important to identify trend days quickly.  They are extremely damaging to counter trend traders because of the lack of rotation down (or up depending on direction). Inexperienced traders take loss after loss trying to counter trade it and the experience can be maddening.  The flip side of that coin is that early detection of trend day up can be a big pay day.

(2) Since I am running behind I will cut it short & simply say that while but signals were triggered multiple times there simply were few opportunities for fills. The break of the 1591.75 - 1593 zone did trigger a signal & provide an entry but never gave a two point rotation higher as the market.  On my spread sheet I am counting the entry as a break even trade.   I use a hypothetical stop of 3 points for the spread sheet which was never triggered.  Please keep in mind that the spread sheet are hypothetical entries and exits and are for education purposes only. Its to demonstrate how executing a consistent entry and consistent exit on a high odds strategy can solve many many problems that most non-professional traders face in trading any security. Please don't follow me blindly.  Your entries & exits and trade size should be based on your personal ability to handle risk & your stops should also fit that profile.

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.