Emini Day Trading Diary

5 min candlestick Chart EMINI Nasdaq 100

Dear Trader,

The market swung into a full fledged rally today and the were plenty of signals from MACD, stochastics and Moving averages to alert us to go long. At around 10:30, price began to bounce of the moving averages and this was accompanied by the upturn in stochastics and MACD. I immediately long 1 contract at 1498 and when price broke abvoe the high established earlier, I longed another 2 contracts at 1504. I was pretty confident of the trade and let the profits run. However, at 11:30, I began to see weakness in momentum and I exited at 1510. This resulted in $480 of profits in 1 hour. Not too bad.... However, if you look at the chart after 11:30, you will notice that price keeps on moving up. But there was no way I could have predicted that and I believe that I took profits at the right time. Greed is the number one enemy to successful trading.

Posted by Michael Taylor at 5:52 PM | Permalink | Comments (0) | TrackBacks (0)

5 Minutes Nasdaq 100 Candlestick Chart

Dear Trader,

How's going lately? There is a classic breakdown pattern today. First there is a double top ( in green circle) then price began to fall, I shorted 1 contract at 1505 with my stop loss at 1511. Then at 13:10, price broke the 150 moving average. This was a crucial point. If it rebound, I will exit my position and go long, However if it broke even further, it means that price is moving down and the 150 moving average which was originally a support level had become a resistance level. Price tested the 150 moving average for a while, doji candlestick appeared and I knew it was going furhter down. I shorted another 2 contract at 1498. There was no knowing where price will stop, i expected it to retrace all that was gained from yesterday's movement. At 14:00, there were signs that momentum is weakening and the plunge is going to end soon, at 14:20, I exited at 1488 with $740 in profits.

Posted by Michael Taylor at 5:21 PM | Permalink | Comments (0) | TrackBacks (0)

5 mins Nasdaq 100 Candlestick Chart

Hi,

The market actual plunged down by 4 points during the open. But when it hit the moving averages and started to bounce, I know my chance had come. I went long 1 contract at 1493 and when it shot pass the high established during market open, I went long another 2 contracts at 1497, my profit target was at 1500. Price momentum was fantastic and I shifted my profit target later to 1502. This trade made me $380.

The next trade was the pullback of this current trade. I didn't expect price to shoot all the way up in a vertical manner. Sooner or later it had to come down, When price hit 1504, it started to show signs of weakness and as expected, a red candlestick formed as a result. Shorting when the trend is up is an advanced level technique and requires more observation. I did not go short immediately after the red candle appeared. When price shot pass 1501, I knew it was going down and I shorted 1 contract at 1500 and another 2 at 1497.5. My profit target was at 1490. The trade closed perfectly with $500 profits. Total profits = $880.

Posted by Michael Taylor at 5:22 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Nasdaq 100 CandleStick Chart

If you trade on Friday, good luck to you. This is exactly the time when you should stay on the sidelines. Let me explain why. Firstly, price is moving within a narrow range, from 1460 to 1468. Obviously one strategy would be to buy whenever it hits the lower resistance level of 1460, but let me ask you another question. Is the risk/ reward ratio good enough for you to do that? If you look at the short term MACD, it is hovering close to the zero line, suggesting that the moving averages are close to one another. The mid term MACD has a gentle slope upwards which is typical of a ranging market. Normally we need a symmetrical slope on hte upside for a reasonable amount of trend.

Posted by Michael Taylor at 6:00 PM | Permalink | Comments (0) | TrackBacks (0)

5 minutes Nasdaq Emini CandleStick Chart

The downtrend has turned into an uptrend. This could be a pullback or it could be a sustainable uptrend, we don't know. What we do is, we capitalize on it, we ride the wave. You have to be nimble enough to forget that until yesterday the trend was generally down and go long. Trading psychology is one important aspect that tends to be neglected. Price opened with gap down today.. I did not go in immediately as I was not sure whether the gap will close. I waited until about 10:20 am when price bounced off the moving averages after a pullback. I went long immediately at 1482.5 and another 2 contracts at 1491.5. I was pretty confident price will hit the 1500 mark and placed my profit target at 1499.75. At 11:20 am my profit target was hit with $675 profits in my pockets.. Easy trade, smooth and relaxed.

Posted by Michael Taylor at 3:10 PM | Permalink | Comments (0) | TrackBacks (0)

5 Minutes Nasdaq 100 Candlestick Charts.

The market no longer has a clear cut down trend. Instead, it is consolidating and bouncing up and down. Even so, there is still chance for profit as price very obviously bounces down from the moving averages. The keyword is PATIENCE. Wait for an appropiate entry position. Well, it seems that I do not have to wait too long today. At 9:45, price began to bounce down from the moving averages. I immediately shorted 1 contract at 1483 and during the pullback, I shorted another 2 at 1480. My stop loss was set at 1488 and my profit target at 1472.5 which is slightly higher than the support line established by the low of the previous day. At 10:40, my position was out with $510 of profit. Not bad for 1 hour's of work.

Posted by Michael Taylor at 4:19 PM | Permalink | Comments (0) | TrackBacks (0)

5 Min NQ Chart

Dear Trader,

This down trend might be coming to an end soon, nobody knows when it will end. But price does not move as much as it does a few days ago. The next few days we have to be careful because a change in trading environment means we have to adapt out trading style accordingly. Shorting might not be the most feasible way.... Price opened and immediately plunged down, I did not short immediately, I waited for it to hit the moving averages and bounce back down. At around 10:20 am, I got my chance and I shorted 1 contract at 1486, and another 2 at 1482.25. My stop loss was 1490 and my profit target at 1472. Within an hour, at around 11:20 am, my profit target was hit and I am out with $670 profits...

Posted by Michael Taylor at 5:49 PM | Permalink | Comments (0) | TrackBacks (0)

5 min NASDAQ Candlestick Chart.

Dear Trader,
How's it going? The market is in a down turn these few days. It only makes more sense to go short than long. Although market opened with a gap down today, price moved further down before closing the gap. I wasn't in the market. I was waiting for the gap to close and for price to bounce right back down. and BINGO! at 12:30, the gap was closed and price shot sharply down from the moving averages, stochastic and MACD also shot down from the overbought regions. This is exactly what I envisioned. I shorted one contract at 1517 and another 2 at 1510. My stop loss was at 1520, pretty tight. Because I want to be out as soon as possible if I am wrong. After my entry, price was moving in my favor and I did not put a price target, I wanted to eat the full wave of it. However, at 14:00 pm there was a slight pull back and I knew the down trend is comign to an end. I put my profit target at 1495 and at 14:40 my profit target was hit and I am out with $1040 in profits. It's days like these that keeps me going!

Posted by Michael Taylor at 5:24 PM | Permalink | Comments (0) | TrackBacks (0)

5 Min EMINI Nasdaq Candlestick chart

Dear Trader,

How's it going lately? The trend is obviously down, I hope you'r making more shorts than longs. This trade is any easy one all the >technicals are inline. Firstly, I must emphasize that price is already in a downward trend position. If you can't see this, try zooming out of the charts. Try to view 15 minutes, 30 minutes or 1 hour charts, you can definitely tell that price is in a downward trend. What do we do next? We just wait for the right technical signal to come. At around 12:00 pm my chance came when price bounced off sharply from the moving averages, this is accompanied by a sharp downturn in stochastics from the over bought region and MACD crossing the zero line. I made up my mind to go short. I shorted 1 contract at 1533 and annother 2 at 1525.5. Price momentum was good and I placed my profit target far away at 1510 as I was not sure how far it can go. After 13:00, price action began to look choppy and I decided that it'd wise to exit soon and I exited at 1518. $600 in around 1 hour, not bad.

Posted by Michael Taylor at 5:31 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Nasdaq 100 Candlestick Chart

Dear Trader,

This trade is a god sent. The technicals are so strong that it is literally yelling at you to short it. Firstly, price closed the gap and immediately bounced back. Secondly, it was also at the top of the bollinger band and moving averages, so it was natural for price to make a bounce (especially when the general trend is downwards). I shorted 1 contract at 1565 and another 2 contracts at 1559 ( which is the pull back). My profit target was at 1550 which is the low established by the price action in the earlier part of the market. This trade lasted for almost 2 hours and my profit target was automatically hit with $660 profits.

Posted by Michael Taylor at 4:09 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Nasdaq 100 Candlestick Chart

Dear Trader,

This trade is a god sent. The technicals are so strong that it is literally yelling at you to short it. Firstly, price closed the gap and immediately bounced back. Secondly, it was also at the top of the bollinger band and moving averages, so it was natural for price to make a bounce (especially when the general trend is downwards). I shorted 1 contract at 1565 and another 2 contracts at 1559 ( which is the pull back). My profit target was at 1550 which is the low established by the price action in the earlier part of the market. This trade lasted for almost 2 hours and my profit target was automatically hit with $660 profits.

Posted by Michael Taylor at 4:09 PM | Permalink | Comments (0) | TrackBacks (0)

5 Minute Emini Nasdaq 100 Candlestick Chart

Dear Trader,
How's your trading been? I have taken a long break in Japan and today's my first trade after my holidays... I hope my skills are not rusty.. :p
After observing the market trend for a few hours, I decided that today's a down trend day. This is pretty obvious as price always bounces off the moving average downwards.
My chance came at around 11:20 where I shorted 1 contract at 1575 and another 2 contracts at 1572. My profit target was at 1566 which is support line from previous price action. This trade lasted for around an hour and at around 12:20 pm, my profit target was hit and I was automatically out with $420 of profit.

Posted by Michael Taylor at 5:03 PM | Permalink | Comments (0) | TrackBacks (0)