Wednesday, 20 July 2011

Anatomy of a Morning

I've been trading a lot of DAX lately. It took a lot of my money years ago when I first started trading it, so every Euro I make is worth double. Being truthful, I think that the fault was me not seeing what "they" were doing. I didn't pay enough attention to the context.

This morning was pretty classic and everything here can apply to any market.

We started with a Gap Trade leaning against the VAH of 15 juky where the flo turned. The idea was to trade down to the VAL of yesterday. A quick 30 points was had as it completed this retracement. 30 DAX points can make my day, even without a colt 45, Harry.

Taking trades that have a fit with a vision make a lot of sense. Trading indicators is like trying to drive a car by just looking at the instruments, without taking into account the traffic and the road.


  1. Hey EL. When it comes to finding the context of a market I see people using a lot of different aspects of a profile as their support and resistance levels. Things such as POCs, naked/virgin POCs, VALs, VAHs, HVNs, LVNs, IB highs, IB lows, gaps, zippers, etc. It almost seems like too many things to take into consideration.

    What aspects of a profile do you find the most useful for context and show the strongest support and resistance levels?

  2. Kyle, only what looks relevant in the context. Its not mechanical. I don't pay attention to IB Highs and Lows. Its a matter of looking at your bar chart when it hits a relevant area and see whether the orderflow or momentum changes.

  3. Even better this morning (Thursday). No volume, no conviction then the Dax painting a big red 100 tick zipper.