Thursday 7 June 2012

Roll-Over Day in U.S. Indexes

I usually hate rollover days as there is a lot of spread trading between the current and the new front month. It often distorts things, but not always. I take a bit of extra care on these days.


I'm getting back to the grind today although I'm not in full mode until next Monday. Still catching up on stuff and putting on some new option positions today. The second blog starts next week so I can share some trades with you as I do them.


The trade today was the ES trade I took in the morning, London time. It was the usual pullback in the direction of the trend. I got an early entry as the market pulled back onto support at the 33EMA and displayed the thrust with a "W" formation in the short CCI, a pretty good picture for me. The early entry - before the close of the bar - allowed me to take some profit at 1.5 points and then to manage the balance with less risk.


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4 comments:

  1. bring2mind7 June 2012 at 16:09

    Hi EL, thanks for this excellent blog which helps me a lot in my progress as a trader. i went from a losing trader to CP - still not on all days but almost every week.
    when u take those pullback aka inside-out trades do u always confirm the thrust also with order flow on the bar and cumulative?

    cheers, peter

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  2. Electronic Local7 June 2012 at 19:06

    Peter, Not usually as the momentum I see from the CCIs and EMAs are the footprints of order flow.

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    Replies
    1. bring2mind11 June 2012 at 08:15

      Hi EL, appreciate your comments! Could u please have a look at Friday's EuroFX 10Tick Renko. No pullback towards the 33EMA. How do you trade such a day? Change the tick size?

      Cheers,
      Peter

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    2. Electronic Local11 June 2012 at 09:14

      Peter, I usually use a 5, 6, or 9 tick Renko. You could go up if the smaller ranges are too noisy.

      Delete

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