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 Tzu, The 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.