Thursday, 7 June 2018

To the Moon it Went.

The evolved order flow methodology I'm using with the reconfigured charts is adaptable to any timeframe. When there is a lot of noise, going less granular can be clearer. Also, higher periodicity brings larger average profits albeit with larger stops but position size is the balancing factor.

The ES broke out, AGAIN! My next target is 2850 based on my FavFib calculation. As the Russell 2000 orbits to yet higher life of contract highs, the ES is in its footsteps. I can't help being mindful that stops need to be in place because as usual it will end in tears for those that don't do that.

The chart below is pure order flow. I know after the event it all looks clear but at the right edge of the chart in the heat of battle it often is not. However, if you are trading order flow in a structured methodology the probabilities take care of it if you follow your trading plan. When I say this, I always think of that wonderful character played by Herve Villechaize in the TV show, Fantasy Island, where he says: "The Plan! The Plan!" While Herve was referring to the aeroplane, his boss, Rourke, always had a plan and stuck to it.

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