Sunday, May 19, 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.


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