Wednesday, 23 November 2011

Plan the Trade and Trade the Plan

My vision for the day was a down day and that worked at first after the Eurex opened. Then the major support on the DAX held and the market looked like it would bounce.

The trend changing is visible on the left side of the chart. EMAs were converging. Price broke through them both and I saw that we would rally. How far, I didn't know. The pullback to the EMAs did not hold so I couldn't find an entry there. I then got a higher low and a penetration of the EMAs again. This is where I should have gone long but missed it. I then looked for another entry point so created the Fav Fib lines. Price bounced down from them but I still didn't see an entry. Then there was the next pullback with the price rejecting the lows, CumVolDelta nice and strong. The Fib had held twice but would break on the 3rd try. it did. Price ran all the way to the next Fav Fib where I went short, having scaled a few times on the way up and reloaded as I went. The short was covered at the EMA and I was ready to start again.

The trade worked because I thought it out. My initial vision was short lived but the market clearly showed what was going on. Order flow was clear.  Plan the Trade and Trade the Plan.


  1. jenrique42
    long time that I follow his blog, which I find very interesting, though it is costing me the most is to focus on making trading on what I see in the graphics, when I put a trade or start thinking far could imagine, and I find that I have left objectivity while some fear puts me in the body, eventually correct this error, but if it happens to me I could go SIM in real?

    I just saw, what you call an IOL, large iceberg order in the euro, which I had already noticed, but did not know why it was today re-reading his blog I found the reason of these candles

    hace bastante tiempo que sigo su blog, que me parece muy interesante, sin embargo lo que mas me esta costando es centrarme en hacer trading sobre lo que veo en los graficos, cuando pongo un trade empiezo a pensar o a imaginar hasta donde podria llegar, y eso me parece que me resta objetividad y a la vez me mete algo de miedo en el cuerpo, con el tiempo corregire este error, pero si me pasa en SIM que me podria pasar en real?

    Acabo de ver, lo que usted denomina un LIO, large iceberg orden, en el euro, cosa que ya me habia percatado, pero no sabia a que se debia, hoy releyendo su blog he encontrado la razon de estas velas

  2. jenrique42

    las imagen de las LIO q comente antes

  3. jenrique42, When you see them at a price that takes out a high or low, it's usually stops being hit. On some exchanges and or data feeds it can be a reporting of a spread trade or similar.