Tuesday, 3 November 2009

How Sweet It Is

Taking another line from "The Great One" that I spoke about yesterday, it was sweet today. Again the market made its move in the European time zone. Another advantage of this time zone is that there is more time to think about your trade. Today, K. was very efficient in the morning, much more so than in the RTH.

The ES triggered a sell by the order flow and then all we had to do is take off the position. The smoothed order flow indicator just slowly curved down after a high. There was never really a moment of doubt all the way down from the entry to the bottom of yesterday's Value Area Low (VAL). Interestingly, the VAL coincided with my favourite fibonacci number. If you look at the screen shot you will see the blue box that I drew in after I entered the trade, some 10.5 points from the final exit. It was great seeing it hit its ultimate target.

We took a break for a couple of hours before the RTH session. The ES had covered a lot of mileage with that 10 plus handle move. My expectation was to see some retracement and then a rotational RTH session. This is exactly what happened. We traded up until the NY lunch time and then "banked our bucks". How sweet it was.

Click to enlarge

I will start putting in K.'s trades on some days so I can compare her entries and exits to mine and critique them in writing. We always do a post trade day review and go over every entry and exit. I do that for myself normally as it gives me a chance to pick up on falling back into bad habits - I had a million of them and still have too many. 

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