Wednesday, 13 October 2010

Gapping Again

I traded the DAX in the London morning and switched to the ES after I walked the dog at noon. That fast run up that hit my resistance line on the MP chart enticed me to hold the short for the Gap trade. Front running the RTH open is something I have written about a few times. The sale at around 1174.00 as the upward momentum died and the order flow changed direction was easy with the MP resistance.

But the gap close was not a normal open to yesterday's close gap close, but an open to RTH high close, which is how we used to trade it 10 years or more ago. Identifying the bounce was easy - look at the CCIs.

Again, the vision was important. I was looking for a firmer market and that's what I got, after it did it's necessary housekeeping.


  1. Hi El,
    couple of questions:
    - given the fractal nature of markets, do you use your technique on larger time frames? (say for a retirement account)
    - as you trade one market, do you watch other markets to give a sense of which its likely to go? (say watching 6E/DX while trading CL might be useful for instance).


  2. J, Yes, my techniques work all timeframes as I am looking at order flow: price and momentum.
    As far as "cross referencing", I only trade the trend of my range bar chart. Anything else is only a distraction. MP gives context. My win rate is probably as high as it can get. I'm still working on better exits.

  3. Hi El!

    I was just wondering if you still have losing days, and if so how many a year on average? Thanks for a superb blog!


  4. Anon 12:44, sure I have losing days. I can have a day when I totally lose my focus and discipline in the morning I have to fight in the afternoon to come back, or visa versa. The trick is to see that I'm self destructing and correcting it.