I got a real nice one this am, shorting near the high at 925.50. I exited 911.50. I explained my reasons in detail in the chart annotation. I am not an early morning kind of person. The only reason I was able to be sharp enough to take this trade was my preparation. I was totally aware that 924 was a key area and that if the price probe above this failed, or if this was just a stop catching expedition, we should see a really nice move to the downside.
I had my target clearly laid out at yesterday's low. I had a clear analysis and my inferences worked out to the tee. When the trade moved in my direction, I got out of the way and let it play out.
We all know that it doesn't always work out so nicely. Today it did. Now on to tomorrow.
I was fortunate to short the HOD near the end of the day. I wanted to outline my reasons. Friday's, near the end of the trading day/week, often offer unique opportunities for large break outs or reversals. I am often aggressive at this time in the trading week if the opportunity presents itself (which it often does). This wasn't an amazing trade but I still got 4 points max out of it.
Check out the charts for my thoughts. Questions/comments are surely welcome.
Its been a week since my last post. We had a wonderful time at a wedding in FL but it was blazing hot and humid. It's so great to be back in S. California, and great to trade once again. I was a little concerned that it might be hard to get my trading groove back, but I started the day with a nice trade - without missing a beat.
I have long been preaching the value of developing your pattern recognition skills by snagging pictures of your charts and annotating them with your observations - day in and day out. Well, I started trading rather late today and as soon as I got to the screen this pattern immediately screamed to me: "SELL".
It really does become automatic in time. Bill Duryea (of IOAMT) says that you need to see a pattern 100 or more times until it just locks in what it is telling you. There is suddenly no figuring it out. The pattern just talks to you.
I have become so comfortable with my charts as I have set them up. They literally talk to me now. So, once again, I highly encourage you to set up a Chart Book and do your pattern recognition homework daily. It absolutely (and literally) pays off.
I welcome feedback and comments on how you have set up your Chart Book and how it is effecting your trading.
I hope a lot of you could make the class yesterday and that you enjoyed it. I am on the road for a short vacation and will not be able to trade or post for a few days. I will be back on Tuesday and hope to get my posting back in gear. I put a lot of time and energy into the class over the past two weeks, so my trading and posting has been far more sparse than I prefer.
See you next week. Be well and make us some money.
I wanted to remind you about my class tomorrow: Optimizing Brain Function to Improve Your Trading. Since I could only post this as a picture, the links aren't live.
I have a pretty nice chart to share with you tonight. We had clear signals on all four 'micro' charts. I wanted to go short somewhere near the 943-945 area for the reasons I outlined on the chart. This trade developed very slowly. I actually got in very early but there were lots of opportunities to get short as there was absolutely no upward momentum.
I was able to get in long near the LOD. The Footprints/Volume Breakdown really signaled a nice trade opportunity. It's always a little daunting going counter trend on such a strong downtrending day. However, when I saw that massive volume on the 6 reversal chart as the market make a new low and then could only eke out 2 ticks more, it really looked like a possible bottom to me. After a while, you just get a feeling.
I am also including a link to the chart definition for the my 1.25 Range Chart. I have removed the Delta Divergence indicator as it was coded by a friend, but it's not really hard to do if you have IRT or MD Pro. BTW, I don't really look at the signal very much and could absolutely live without it. That said, it's nice having it.
Also note, that the lines will not print for you due to the V#'s I have used and the Quote Page I created. I left it so you could get an idea of the lines I look at. They also automagically print on my 30 minute chart and Reversal Chart.
Hi guys, I have mostly been showing you trades lately and focusing on my entry level charts (1.25 range, 6 tick reversal and 10K Volume). However, these longer term charts are where most of my key levels are seen. They are crucial for my trading. The way I have them set up makes it really easy for me to see key reference areas. Only when I see the market moving toward an area of interest does my entire focus switch over to my entry level charts and do I then begin to look for signs to guide my entry or my decision to not take a trade.
I have been asked many times whether I wait for footprint confirmation to enter a trader. The answer is sometimes yes and sometimes no. If I have a level that I am extremely interested in (as I have showed you many times), I just want some sign of deceleration of momentum. I will speak of this more in future posts. If I really like a level and see signs of deceleration, I will often enter very aggressively, to get in at a price where I can set a tight stop.
At other times when I feel like I need more 'evidence', I will wait for the footprint to confirm. There are also the really nice occasions when you get footprint confirmation and great location.
Hi guys, I hope these charts aren't getting boring. Its just that, if you are patient, the same type of trade sets up pretty much day in and day out. On this one, you'll see that the Initiated Buying and VAL from the prior day stopped the market in B period. The divergences indicated that the market would not likely break thru the second time down.
I added a custom indicator to the 10K Chart that paints the candles the Delta Color. This can easily be done in IRT or MD. Just create a new Signal with the only criteria of VB > 0. Then add a Paint Bar (from the Signal's drop down menu) Choose your new new custom indicator from the drop down menu and choose the colors. Mine is blue for Delta greater than 0 and red for Delta less than 0. Really simple. I think you need the Pro version to do this. BTW, I recently upgraded to Pro and I am simply loving it.
I saw Kam Dhardwar using this in the L2ST room. I don't use this info for much at this time, but it could be useful.
Hi there guys. Please join me for a free class that I will be giving for IOAMT on Tuesday, June 16 at 4:30 PM EST. You'll get to see another side of me and (I believe) pick up some really valuable information. The room will be open to all. If you have already gotten a free trial with IOAMT, just email them at support@ioamt.com to register for the class. Below is the PR piece describing the class. I hope to see you there.
MG
Optimizing Brain Function to Improve YourTrading
Trading is a very demanding activity. ** Traders need the ability to stay focused, with high-level cognitive function and balanced emotional states for many hours at a time. *** Healthy brains and balanced brain chemistry are absolutely essential to perform at the highest level. **** The Institute of Auction Market Theory is happy to announce another FREE presentation. It is our goal to provide the best in education and in this quest we are excited to have Dr. Bryan Stern as our next guest speaker. Dr. Stern is a physician with 30 years experience specializing in Functional Medicine and also a day trader.
He is well known through his trading blog as MGTrader. He will be discussing how our brain function has a direct effect on our trading outcomes.
Many traders have brains that are functioning far below optimal levels. The brain can abnormally age and deteriorate and brain chemicals known as neurotransmitters can become imbalanced. The result is a whole slew of cognitive and emotional symptoms. These can include (to name only a few):
· Memory noticeably declining · Focus noticeably declining · Reduced attention span endurance · Reduced pattern recognition skills · Slower mental response · Difficulty learning new things · More fatigue from trading · Anxiety and panic · Inability to handle stress · Increased bouts of anger and frustration
This class will teach you how to reverse brain deterioration, balance brain chemistry, dramatically improve cognitive function and balance your emotions utilizing cutting-edge nutritional supplementation, diet and lifestyle modification.
Each participant will have the opportunity to complete a Brain Questionnaire to assess their own brain status.
This important presentation will be completely FREE! Knowing how to keep your brain strong and in top physical condition will support you in eliminating emotional blocks and sustaining the energy necessary to get the most from your cognitive abilities.
Join us on 6/16/09 at 1:30pm PST. The class will last about 1.5 hours and include time for your questions at the end. To insure your spot at this event, simply register for IOAMT's Free 5 day trial at www.ioamt.com.
I have shown you several times now how divergence of Delta Momentum at key levels is quite an amazing indicator. Here is an example from today. I forgot to annotate that I exited at the VWAP at 932, a good high probability level.
When the market failed to get strongly above the VWAP and instead broke down, my perspective went strongly bearish and I stopped looking for long trades (until near the end of the day). Unfortunately, I had some things to do and couldn't get in on the reversal late in the day.
Hi there guys, Here was a really nice trade opportunity. I hope that a lot of you took it. Check out the charts.
I have a few thoughts that I want to share with you today. I really try to keep it simple. I wait for my set up and if I get confirmation like this on my micro charts, I jump in. I am constantly experimenting with my charts, making them more complex in the thought that more data is better. Most stuff doesn't stick though. More isn't always better. I want nothing to slow me down. I have a few patterns I look at and they are second nature.
I want my platform setup to be a lean, mean, money-making machine. My advice to you is to get rid of anything on your charts that isn't consistently effective, anything you don't really use or anything that slows you down or makes you hesitate. Master everything on your screen. I don't show you lots of the things I try and throw out. I want to show you stuff that works for me.
Its taken me years of hard work and study. But, at last, I have a style of trading that works for me. Now, I just work on refining it. I hope I am helping you, in this blog, to find your own successful style.
I have practiced Functional Medicine for 30 years. It is something I love and am passionate about.
I have been an avid Day Trader for the past 5 years. It is a serious hobby for me (with benefits). I am equally passionate about trading.
The focus of this blog is on Auction Market Theory. In my posts, I share my observations, analysis and charting ideas.
Please remember, I am just a student like you. Don't believe anything I teach here. Check it all out for yourselves. Discover what works for you. It is my pleasure to share this blog with you.
