Monday, 4 January 2010

Better Never than Late?

I have always said that it is better to be aggressive and early in your entries than to be late. Today's trade is a perfect example of this.

For one reason or another we were late starting this first trading day of 2010. Maybe it was the after holiday re-entry problem. Any way, we missed the entry on the ES at 1116.25. We then had to find a secondary entry point and it was at 1118.50 with our stop at 1116.50. We then had to sit for over 4 hours lethargically watching the market consolidate until the coil sprung at around the RTH opening. The risk here was that "they" went to try and fill the gap between the RTH open and the last close at around 1113.50. Luckily it didn't eventuate and the market motored to the swing high at around 1126.00 where it again consolidated, looking to go to around 1129.00. We scaled at 1120.50, then at 1125.50 and held the last 1/3 until 1129.00. 

It was quite painful sitting for 4 hours plus with the price against us. We had a couple of opportunities to scratch the trade, but it never entered our minds as the order flow was always positive, even though the momentum wasn't. Had we made the correct entry at 1116.25, we would have saved ourselves a lot of pain as the market never gave any heat to an entry at that price.

Again, it's Location, Location, Location. We ended with a 10 Point Buck. A good start to the year. 

Click chart to enlarge


  1. Why 16.50 for the stop?

    Thanks. Nice trade.

  2. Great way to start the new year!

  3. Happy new year to all reader this nice blog,to Electronic and Kiki. I have watched entry at 1116,5 but I was afraid of resistance POC from last day last year about 1118 what seems very near .What do you think about it ??? Hypoteticaly if you entry 1116,5 you dont care about it ???? Thank

  4. OK I admit it. I was looking for a method to trade using Momentum and this is the best idea I have come across. Two Great long setups for me today on the ES (900AM at 1119.25 and 14:25 at 1125.25 ) both of which went IMMEDIATELY higher without the usual chop and slop and fakeout!! Love it.

    The past 3 years I have been living in pullback land and the result is that when you get into a trade the bulls are fighting the bears and you're getting stomped on watching the battle.

    This method ... you're either right or right out! Looking forward to the webinar.

    PS. this method works very well on the currency futures with an adjustment to the size of the range bar. Nice.

  5. I noticed fibs on your chart are you using other S and R's like pivots etc...,

    Thank you

  6. What was the reason/trigger for the best entry at 1116.25? Since at the time, volume would be very low, order flow couldn't be the reason

    Thanks for the post.

  7. HOLY CRAP, this strategy works! 3 fantastic trades today, based off of WCCI crossovers, MP support and resitance, and order flow. I use fibs as well, and today's VAL matched up perfectly with a measured move long.... I am so pumped, this is great! I know that I should have stayed patient and posted this when you update the blog, but I couldn't help but post now. WOOHOO! Only 2 months and 29 days of paper trading to go :)

  8. kuky, I look at the whole picture. Sometimes if 1 duck is out of line it doesn't matter because the "picture" tells the story. Also, missing a trade is not the end of the world. If you consistently only want the "best" trades AND you can find them consistently, just trade more contracts.
    bakrob99, yes this stuff works and gives instant gratification if you get the right trade location.
    tickvix, its not the amount of volume but the change. VB, CVD both went green and the CCI was going up.
    Way to go Bigsnack. I'm pleased you are validating what you are doing. I'm really enjoying your success and that of others.
    Mark, I'm only interested on one Fib number and I'll show how I use it at the webinar.