ES TRADE PLAN FOR 05-31-2013

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.

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.

ES TRADE PLAN 05-30-2013

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.  Good luck.

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 05-29-2013

1)  ES opened with sellers in control   The trade plan called for me to look for trades in the direction of control  at the middle to back of the zone on first touch.  Placing a short near 1649.50 provided excellent trade location for a possible 5 point trade.   If your familiar with my blog my highest odds trade is to target 2 points and close the trade.  I will post the up to date results of that model shortly.  Either way,  it would be hard to lose money with that trade placement with a reasonable stop. 

2) I pointed out at 9am that while buyers had control if we closed above 1649.50 on the five minute that I was expecting choppy conditions with a balanced profile. Importantly I said i was not taking trades in teh middle which at the time was the WHITE ZONE.    Just the same,  closing below the WHITE ZONE put sellers back in control and let you know to stand down from a counter trade for less aggressive traders.   When we reached 1640 I pointed out that we had an extreme in negative tick reading.  That this often indicated bottoms-at least near term are probable.  Also noted I would be looking for divergence for a possible long.  Thats exactly what we got at 10:10 central time for a beautiful rotation up to the back of the 1643.50-1645.50 S/R Zone. (3)   A potential 7.5 pt trade.   

The rotation up was capped at the first part of NY lunch & ES chopped around for 30 minutes before responsive sellers pushed down from 1645.50 down to 1640.  (4)On the second push down toward 1640 we had a positive tick divergence & a higher low.  This set us up for a strong move up and Responsive buyers pushed ES all the way up to the 1651.50-1653.560 Resistance Zone. (5)  Again,  I cautioned on twitter that we had seen a higher low and significant tick readings plus great tick divergence.  These were all clues that the low of the day was in.  This is part of the art of trading, see the clues that the game had changed.  In addition I sent a message to my coaching clients & later on twitter that I was in capital conservation mode.  That simply means I am cutting position size and only taking the best set ups.  I had a great morning and was not going to hand it back to the market.    

Buyers stayed in control the balance of the afternoon and pushes into the WHITE ZONE could be bought for rotations higher.  Only in the last 20 minutes did the rotations fail.  Again,  90% of the time I take no trades in the last hour.  Its just too hard to call on a daily basis.

On a coaching note.  Today was not easy,  the open was whippy and fast.  That is why discipline is key.  If you did not have a targeted exit you profit could have come & gone quickly.  Not having and respecting your stops could have run you over on the 2nd break of the WHITE ZONE to the down side.  Second and third touches into a zone carried greater risk.  I hammer focusing on  the highest odds trades because its critical to the learning process of a trader that you be positively reinforced with consistency in profits. If losses start to compile, there is no way to stay in a learning mode.  Its just a fight for survival.  

I hope all did well,  tomorrow is a new opportunity to repeat what you did well today and improve what was poorly executed.  Its an awesome thing that we get to start over every day. 

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.

MID DAY REVIEW ES S/R TRADE ZONES FOR 05-29-2013

1)  ES opened with sellers in control   The trade plan called for me to look for trades in the direction of control  at the middle to back of the zone on first touch.  Placing a short near 1649.50 provided excellent trade location for a possible 5 point trade.   If your familiar with my blog my highest odds trade is to target 2 points and close the trade.  I will post the up to date results of that model shortly.  Either way,  it would be hard to lose money with that trade placement with a reasonable stop. 

2) I pointed out at 9am that while buyers had control if we closed above 1649.50 on the five minute that I was expecting choppy conditions with a balanced profile. Importantly I said i was not taking trades in teh middle which at the time was the WHITE ZONE.    Just the same,  closing below the WHITE ZONE put sellers back in control and let you know to stand down from a counter trade for less aggressive traders.   When we reached 1640 I pointed out that we had an extreme in negative tick reading.  That this often indicated bottoms-at least near term are probable.  Also noted I would be looking for divergence for a possible long.  Thats exactly what we got at 10:10 central time for a beautiful rotation up to the back of the 1643.50-1645.50 S/R Zone. (3)   A potential 7.5 pt trade.   

I have gone into a protect equity mode for the balance of the day.  Simply means I am trading half size as I do not want to get whipped around.  A profitable day is a beautiful thing.  Think about it. 

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 session for only $200.  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 TESTAMONIALS 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.

ES TRADE REVIEW FOR 05-28-2013

1) ES gapped above the WHITE ZONE OF 1662.50-1664.50 opening at 1665.50 & driving to the back fo the 1666-1668 resistance zone.  This was a significant gap above Fridays close of 1650.75.  The WHITE ZONE WAS critical here.  It simply told me I did not have to worry about the gap fill as long as we held the WHITE ZONE.  No need to guess,  I knew buyers were in control.  As the focus of this blog is on the highest odds trades we will focus there.  ES was unable to drive into the WHITE ZONE for the first 10 minutes and there were no negative NYSE ticks.  Strength everywhere.  The trade plan called for focusing on trades setting up in the back of the zone.  The challenging part of trading is that occasionally you have to stray from the plan.  The first dip into the WHITE ZONE provided the best position to get long.  My targets is usually two points but in this case I was looking for a push to 1672 given the opening strength.  For those focused on simply staying consistent & growing their account; two points were easily achieved.

2) Responsive buyers were able to push ES out of the WHITE ZONE & past the 1666-1668 zone into Initial Resistance of 1670-1672.  I expect Responsive Sellers at Initial Resistance & for less aggressive traders with trailers this was an excellent point to exit longs. Once Initial Resistance is hit I am much more cautious on my long entries as I expect a larger counter rotation from these points.    Responsive sellers did step in slightly above the zone and pushed ES back down into the WHITE ZONE. 

3) The push back into the WHITE ZONE was the 2nd push down into the zone & called for caution.  In addition, heading into NY lunch can prove to be  a difficult time to pull off  a consistent trade.  Consistency is the key to growing your account.  ES Proceeded to chop from top to the bottom of the WHITE ZONE for the better part of 1.5 hours.  Its a great time of day to donate money to the market.  The best one can do is guess which way it will break.  I would be shocked if someone could guess right 90% of the time.  anything less than a 80% trade from a day trading standpoint makes you a loser by my numbers.  Hard to believe,  but that is what my data shows.  

4) ES resolved the chop party by exiting to the down side.  The point of the WHITE ZONE?  To keep me from getting run over in a directional move.  Traders for some reason think its easy to picking off counter moves in a directional move is easy.  I assure you its not.  Its very hard.  It is easiest to simply wait till the market gives you a nice counter trend move into resistance. 

5)  A picture perfect example of that came in the retrace to teh 1658.50-1660.50 resistance zone. ( Prior support = resistance). Responsive traders pushed ES right to ES to 1660.50.  Outside of being the last hour,  the set up was great.  Did I trade it? No, last hour does not support me taking new positions BUT,  the setup was otherwise perfect and had it occurred anywhere else I would have taken the trade.  Traders should commit the pattern to memory so you can act on it next time.  Bottom Line,  The WHITE ZONE simplifies trading decisions.  If you have traded for any period of time you have discovered how hard it is to stack the chips.  Anything you can do as a trader to get on the right side with less effort is a big EDGE.  Are there more trades here?  Yes.  Many many trades from swings to option setups.  It has massive potential.  But my charts single best feature is that if used correctly, it allows me to simply put a few points a day into my trading account.  1 good trade a day is all I need to grow my account.  The trade out of the WHITE ZONE is my number one trade.  

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.

THE POWER OF THE WHITE ZONE

The WHITE ZONE serves on very simple purpose.  To determine who has control, buyers or sellers.  In the simplest of approaches,  a trader simply wants to focus on long setups above the WHITE ZONE & short setups below.  So the first clear concept is by understanding who has control, you can align their interest with your interest.  In the morning, when we gapped above the WHITE ZONE, a trader would know that taking a short was a lower odds proposition.  Even if a trader did not get long,  not being short saved you loss of capital, frustration & all the emotions that come from getting down early in the day.  As we approached Initial Resistance I tweeted that I expect Responsive Sellers at Initial Resistance & thats what we got.

Now take the same situation and flip it upside down.  Say you did not get short for what ever the reason.  By knowing that we were now trading BELOW the WHITE ZONE there was no need for any except the most aggressive to try longs.  Just by focusing knowing who was in control you did not step on a potential 9 point land mine.  Your not pulling your hair out.  Your just waiting patiently.  

Was there money top be made long below the WHITE ZONE & short above?  Yes,  but it was harder money and requires greater skill & discipline to execute those trades day after day.  Most can not do it without a great deal of experience.  Most traders lose money or break even in cycles of boom or bust.  The dream of making lots of money remains elusive until you can stack the trades and days together.  Think about it.  

NOTE: Interested in learning how to become a consistantly profitable trader?  I have an introduction to one to one coaching package that offers 3 one hour session for only $200.  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.

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.