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.

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.

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.

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.