Thursday, 5 July 2012

Busy Thurs and Friday

Lots of news out these two days: European interest rates and U.S. monthly jobs data. Then we have earnings season coming. Opportunity is knocking.

The ES gave a bit of cream in addition to its usual milk. The first trade was a long the result of pre-ECB announcement maneuvering. I then went and sat by the stream and watched the water rush until I had lunch. I ECB made its announcement cutting a quarter across the board. I then waited for the ADP jobs guess to be out of the way and was ready to trade again after that.

You can see the results below. It all became clear, but needed disciplined patience, which is still not easy after all these years.


  1. hi EL
    i notice you have mentioned a few times recently the need for patience. i am gradually learning from your site when to take those golden pull backs, but patience is something i am finding hard to overcome. these days the markets are so often just grinding away for many hours on end. markets like the euro can be dead till the afternoon. i can get extremely bored watching and waiting all day. how do you deal with this? i guess you have alerts set up to notify you when the markets get going. could you tell me specifically what those alerts are? is it an increase in volatility (bar range)? is it the market going from outside the value area to inside value? i find some of the best times to trade pull backs are when price is at an extreme and suddenly and quickly trades into the value area on increased volatility, and then pulls back (still within the value area). price often trades right the way beyond the other value area extreme before finding responsive activity.
    i know what i am looking for when i see it, but i am not sure how to set up an alert that catches it. so i am forced to watch hour after hour of dull markets than continually trade from extremes into the value area on very little volatility, and subsequently stop at VWAP and trade extremely slowly back out of the value area.
    with this boredom and back ache not to mention arse ache from my chair, i am prone to seeing 'great' set ups that aren't there. i tell myself that this move into the value area is on increased volatility because i want to trade. what can happen is i get a bad trade, wait for a few more hours telling myself to be more patient, finally through tiredness take an hour or two break and come back to find i've missed the only opportunity of the day, the one i was waiting for all day.
    do you have days like this or do your alerts always catch these moves? it would be great to know what specifically alerts you to moves like this.

    1. alex, I use different alerts depending on what I want to catch. It may be a trendline I've drawn at VAH, VAL, POC or the 33EMA or the CCI doing something. I just translate what trading picture I want to see and make an alert to fit it. If it's very complex, you can do quite difficult things, easily, in easylanguage and make an alert or email based on that too.