Emini Day Trading Diary

5 min Emini Nasdaq 100

Hi,

Market is still in the undecisive stage... But there is a long signal today.. The classic long signal..
First and foremost, moving averages are not too close to each other.. and slightly sloping upwards.. This is pretty important..

Price crashed down all the way from the opening bell to find support at my slowest moving averages.. This was coupled with an upturn in Stochastics and Short-term MACD... I longed 1 contract at 1959 ..

Notice how price found resistance once more when it reached the opening price? Stochastics and short-term MACD also turned down.. I exited at 1969 with profits of $200.

Posted by Michael Taylor at 5:51 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

The same situation continued from yesterday... If you based your trading decision only on short-term MACD and stochastics, you will find a LONG signal,

But, if you are watching the market on the whole, you will notice that the moving averages are still flat, candlesticks have short bodies just when stochastics and short-term MACD are cutting the signal lines.. This isn't the right condition to enter the market..

Novice traders will look at this chart and say.. If he'd been long, he would be making $$$... You can only know this from hindsight... My judgement is based on real time market conditions and they did not seem right to make the plunge.

Posted by Michael Taylor at 5:33 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emin Nasdaq Emini 100

Hi,

How is it going on lately? The market is quiet again.. The number one factor that I dislike is here again..--> Moving averages are almost flat.. You need at least some kind of slope to trade... whether up or down.. it dosen't matter..

If its up,, high chance we will go long,, if its down, high chance we will go short... Next, look at the stochastics and short-term MACD is this something you will expect in a good trading market? zig-zag patterns with no clear symmetry, close to the zero line.. etc.. Is this good for your trading? Obviously no.. STAY SMART AND STAY OUT.

Posted by Michael Taylor at 5:45 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

If you look at the moving averages, it is slanting upwards nicely... But at the sametime did you notice divergence with the Short-term MACD? This is a good market to go long only on hindsight...

In live trading, I can't find any good signals to go long.. There is a strong surge at the opening bell.. but that was it.. afterthat, price moved in short spurts... with short bodies... dancing aboving the green moving average..

There was no real pullback that we can use to enter the market. Don't be fooled by this chart that it is daytrading is easy.. This chart is on hindsight.. in live trading, you wouldn't see this. You will be wondering whether price is going up or down.

Posted by Michael Taylor at 5:40 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

What is the market doing right now? It is in an undecisive stage.. The candlesticks have short bodies with long shadows, moving averages are almost flat. It is not a market which I am interested in entering.. Waste of time... Low reward high risk... Be patient and wait for the right opportunity.

Posted by Michael Taylor at 5:34 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

The moving averages are sloping upwards... and price gapped up today.. on hindsight it seems like a good opportunity to go long.. Or is it?

If we were to go long, we had to wait for a pullback and rebound from the moving averages, plus stochastics / short-term MACD cutting up from the oversold region. But look carefully, there is no signal to go LONG...

Also, I did not like the short-bodied candlesticks.. this shows that market is undecided...taking small steps at a time.. it is difficult to make money in such a market...

Posted by Michael Taylor at 11:46 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,
How is it going? Market is in a zig zag fashion again today... What I dislike most is the downward sloping moving averages.. On hindsight you might think it is possible to do a range trade --> by tradin between the channels..

But ask yourself what is the risk/reward and you will immediately realize that this is not feasible... Although there appears to be several potential signals from stochastics, this really has to be interpreted on a wholistic basis.. Look at the situation on a whole, dont just look at one technical indicator.. and the answer will be clear.

Posted by Michael Taylor at 5:40 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Nasdaq 100

If you look carefully, moving averages are flat, stochastics was already in the overbought region when price started to move up.. These are not the right signals to go long..

From 11:00 am onwards.. price moved in narrow range.. with short candlestick bodies.. Is this the right condition to trade? NO! Be patient. I think the market has been extremely difficult recently.

Posted by Michael Taylor at 5:30 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

The market is down today.. and on hindsight there is a nice down trend.. see the nice trend lines that can be drawn by joining the highs and lows of the candles...

So do we short??

NO!

Why? --> we are really looking for stochastics and short-term MACD to cut down from the top... if you look at the signals.. most of them are buy signals... weak buy signals.. cutting the signal line from under... Obviously this is a bad market to go long... so what do we do? stay out!

Posted by Michael Taylor at 5:39 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

If you have been following my blog. you will know that I would trade in today's market.. Reason is simple

1 FLAT moving averages -> look at it, it is almost horizontal

2 Short-term MACD -> it is hovering around zero line.. nothing exciting..

3 Stochastics -> not symetrical at all,

4 Price action -> candlesticks with short bodies..

Do you want to trade in such a market? Not me!

Posted by Michael Taylor at 5:30 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

Price gapped down today and eventually closed the gap.. Did you long or short? The answer should be none.

Firstly, moving averages are flat and slightly slanting down... If you should do anything, you should short.

Secondly, short-term MACD are extremely near to the zero line... This means that there is not enough momemtum.

Thirdly, candlesticks have short bodies --> market is undecided.

Fourthly, think about the risk / reward.. although there is a LONG opportunity indicated by the upturn in stochastics... Is it worth the risk?? There is immediate resistance above...

Do nothing when you are suppose to do nothing!

Posted by Michael Taylor at 5:30 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

If you look at today's chart you might think that there is a shorting opportunity at the opening.. when prices plunged.. but ask yourself... is there really a signal for you to go short?

Look at the stochastics and short-term MACD and the slope of the moving averages.. It doesnt seem to me that I can short with confidence.. On hindsight it might be the right move, but I cant tell with conviction during actual trading hours..

Price was moving in short candlesticks throughout the day.. It's pointless to trade in such a market.

Posted by Michael Taylor at 5:42 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100
]

Hi,

Market finallly ended up higher today after several measures by the FED and the recent fall in energy prices... However, I did not trade today...

If you look at the chart on the whole.. on hindsight, it seems like a good market to go long,, with price increasing on an upward trendline and moving averages sloping up... There are several occasions where stochastics and short-term MACD gave a long signal...

However, candle sticks are moving with shortbodies and Short-term MACD is not really displaying the symmetric shape that I would like it to display... No trade today.

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

5 min Emini Nasdaq 100

Hi,

Market gapped down today only to close the gap and end the day near the opening price... It is a ranging day.. I dislike days like these, risk / reward is bad and the best indication are the short bodies of the candlesticks and long shadows... Moving averages are also flat.. It is extremely dangerous to trade in such conditions..

Posted by Michael Taylor at 5:23 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

No trade today. Reason
1 Moving averages almost flat
2 Short-term MACD close to zero line.
3 Candlesticks with short bodies.

Market has been in a raning condition for several days already.. There is no reason to risk any money!

Posted by Michael Taylor at 5:30 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

THe moving averages are flat, Short-term MACD is close to hugging the zero line.. Not the perfect condition for trading... Notice that I have circled in green what appears to be signals for going long... I did not enter the market.. as I couldnt assess the risk/reward. Although stochastics and short-term MACD cut up, moving averages are flat and there doesnt seem to be a trend... too dangerous.

Posted by Michael Taylor at 5:54 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Market is ranging within a 20 point band.. If you look at stochastics alone, you might be tempted to trade.. --> look at the green circles.. But in the broader context, moving averages are flat, candlesticks have long shadows short-term MACD is close to the zero line.. all these suggest that we should stay out of the market.

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

5 min Nasdaq 100 Emini

Hi,

How's it going? Price gapped down today by 23 points, although it closed the gap, but rebounded down.. If you observed, price action is in a zig-zag manner and the candlesticks are characterized by long shadows.. This is an indication of market uncertainty. Also, the moving averages are almost flat, stochastics moving in a zig-zag manner and Short-term MACD close to the zero line... Such is not the ideal condition for trading... I stayed out of the market entirely conserving my capital... There is no need to take unecessary risks.

Posted by Michael Taylor at 6:59 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

The market's undecided on direction and price just hover up and down.... although on hindsight you would have noticed that there is a slight downtrend, the relevant question is whether you would trade in such conditions? There's no need to play cowboy here...

If you observed, Short-term MACD hardly ever crossed over the zero line.... and price action was choppy...

But if you really have to take a position... you would have to short when stochastics are just cutting down the overbought region.. Otherwise, it's wiser to just stay out of the market.

Fundamentals:
Wall Street retreated Thursday after Federal Reserve Chairman Ben Bernanke predicted a "sluggish" economy until later in the year and more mortgage-related losses at banks. The Dow Jones industrial average fell 175 points.

Though the Fed chairman's comments suggested the central bank is still open to further interest rate reductions, the tone was, as expected, somber. Bernanke said the housing and credit crises have weighed on the economy and curbed hiring. If the job market deteriorates, consumer spending, which is crucial for economic growth, will keep dwindling.

The Labor Department said Thursday the number of workers filing unemployment claims fell 9,000 to 348,000 last week. But after the January jobs report that showed the first net jobs loss in more than four years, Wall Street remains worried that businesses are becoming cautious about hiring and that unemployment will compound the debt problems that have been slamming the markets and the greater economy.

After three strong days on Wall Street, investors found scant encouragement in Bernanke's testimony and cashed in their gains.

"He was more bearish on the economy than he was before," said Arthur Hogan, chief market analyst at Jefferies & Co. After this week's better-than-expected report on January retail sales, investors found Bernanke's assessment of the economy particularly disheartening.

"To have the Fed come in and talk about how things could be getting worse, not better, kind of takes the wind out of their sails," Hogan said.

Posted by Michael Taylor at 5:59 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,
The market's ranging now... still digesting the FEB cut... But if you are going to trade, I would advise not to go short... Never fight the FEB... especially in the short term..

You might think that there is a good trade from the upturn in Stochastics and price bouncing off the moving averages... But look carefully again... Short-term MACD is not really moving up.. and it's sticking around zero line... I was not prepared to take the risk... Not worth it.. No Trade today.

Fundamentals:
Wall Street scored its second straight big advance Thursday after economic figures suggested the job market is holding up and as lawmakers agreed on measures that could ease concerns about consumer spending. The Dow Jones industrials rose more than 100 points, bringing its two-day gain to more than 400.

While stocks fluctuated throughout the session, trading was decidedly more calm than on Wednesday, when Wall Street executed a stunning turnaround that transformed a sharp sell-off into big gains for stocks. Thursday's rise was notable, however, as investors will often move in a day after a rally or plunge to take profits or scoop up bargains. That the buying largely continued was a positive sign, observers said.

Investors were clearly interested in buying, but despite the size of the advance, there didn't appear to be much conviction to it -- the market is still searching for clues about the economy in hopes of determining whether it will soon pick up or will continue to slow and tip into recession.

In addition, the market wobbled during the session after Fitch Ratings lowered its rating on bond insurer Security Capital Assurance Ltd. Bond insurers have been hurt in the fallout from the mortgage and credit crises, and news of their problems has shaken the market.

Posted by Michael Taylor at 5:51 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

The market is ranging narrowly and trending down at the same time. There was an article I wrote before that exhibit similar behavior. As you probably guessed, I stayed out of the market today...

Would you go long from the stochastics cutting up? ( Look at circle) . When you know that the general trend is down, do you go long? The answer is NO! You don't have to trade if you are unsure. Just stay out of it.

Posted by Michael Taylor at 5:35 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,
Market gapped down slightly and never fully recovered... it just trended slowly downwards,, but in a tight range.. look at the trend lines I have drawn and see for yourself how price action is behaving... It's stuck in a narrow Bollinger Band of width 10 points..

This is not my favourite market and I decided not to trade it... The risk/reward is not appealing at all...

Is there a signal at the end? Yes, it was a valid signal... but I just wouldn't go long in a downtrend like this... Like I said, the risk/reward is not worth it... NO TRADE TODAY.

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

5 min Emini Nasdaq 100

Hi,

Market gapped down and spent most of its time trying to close the gap... price action was choppy and it just didn't seem to go anywhere...

Price formed a triple bottom and stochastics formed a double bottom at around 14:00... This seems like an exellent chance for entry, but if you observed carefully, you will realize that Short-term MACD is too close to the zero line

Furthermore, there is limited upside potential since all the moving averages presented resistance to price... I decided to forgo the trade in view of the risk/reward potential of this trade..

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

5 min Emini Nasdaq 100

Hi,

Market gapped down today, closed the gap and spent most of the time below the moving averages... however, price action is jittery and short-term MACD remains close to the zero line.. Such is the condition I have been trained to avoid... There is no trade today...

Posted by Michael Taylor at 5:44 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Nasdaq Emini 100

Hi,

Today market gapped down... it subsequently closed the gap and moved quite alot to the upside... But, there was no signal for me to trade... If you noticed, there is a plausible trading signal, when stochastics moved up, but Short-term MACD was very near the zero-line... cautioning me not to go long...

Subsequently, when price closed the gap, I should have gone long according to the strong price momentum, despite having no signals from either stochastics or short-term MACD, however, the limited upside made me think twice about going long and I stayed on the sidelines..

Posted by Michael Taylor at 5:30 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

How's it going? I did not trade today. You might have discovered some trading opportunites especially at the turn of the stochastics ( see green cricles in figure)... But my caveat is that moving averages are flat and the Short-term MACD is uncomfortably close to the zero-line. I did not want to risk it. Risk / reward did not seem good enough for me to consider going long... I stayed on the sidelines... I want to encourage traders, especially novice traders to have the courage to stay on the sidelines when you must. There is no rule that states that you must trade everyday.

Fundamentals:
U.S. retail sales rose solidly in September while inflation pressures were largely muted, according to data on Friday that eased recession fears and suggested further interest rates cuts may not be needed. The show of consumer spending power in the face of a slumping housing market and tighter credit conditions gave a lift to stocks prices and to the value of the dollar. Bond prices fell as traders saw the data reducing chances that the Federal Reserve, which lowered borrowing costs in September, would do so again at a meeting at end of the month.

Posted by Michael Taylor at 1:58 AM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

I hope you did not trade today.. Price action is in a ranging pattern... tightly bounded ..

The top reason for not trading is --> Short-term MACD is too close to the zero line..

Posted by Michael Taylor at 5:33 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi, Subprime could hit $100B....sound's scary? yeah....But Bernanke's effect on the markets is muted at best..although market gapped up today... it is still ranging... the day ended with a 10point range... Toward's the close price made a final attempt to close the gap.. This is definitely not a market to trade in...

Posted by Michael Taylor at 5:08 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Chart Emini Nasdaq 100

Hi,

Nasdaq is hitting on a all time high again... If you really have to make a choice. Go Long. DON'T SHORT in such a market.. Did I make a choice? Yes, I did not trade... Why? There were no compelling signals for me to enter the market...

If you look at the chart above, you might be tempted to enter in the orange zone with stochastics turning up... but take a closer look... Short-term MACD is staying close to the zero line.. This is a NO NO is going long.. this screens out the possiblity of entering at all..

In fact the whole day is kept within a tight range of around 15 points... Stay on the sidelines..

Posted by Michael Taylor at 6:47 PM | Permalink | Comments (0) | TrackBacks (0)

Emini Nasdaq 100

Emini S&P 500

Mini Dow

Emini Russell 2000

What does all the daily charts above have in common? Yes, all these futures market seem to signal that a top is coming... Nasdaq Emini is the most bullish chart with the recent run up... The remaining 3 charts appeared as though a double top is forming...

Plus, there is already negative divergence forming with the MACD.. This is especially evident in Dow mini... I urge all traders to be extremely cautious in this period as we see how the market unfolds... The odds are in favor of a steep correction, but I am not ruling out that the market might break new highs again... Markets are designed to confused and confound... Keep an open mind and let's see what happens next.

Posted by Michael Taylor at 5:34 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Daily Chart NQ

Daily Chart ES

Daily Chart Dow

Market is not really moving much... I am troubled by the health of the trend.. although Nasdaq futures broke new highs today, the dow and S&P did not follow ( Look at daily charts above)

I have highlighted a plausible trade on the NQ today... again.. I did not take this trade.. why? because although stochastics is moving up from oversold region Short-term MACD is too near the zero line...

Furthermore, the price action is clearly different from normal days, characterized by short ranging candlesticks.

Posted by Michael Taylor at 5:48 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Daily Emini Nasdaq 100

Hi,

After the doji daily candle that appeared last friday, market rallied weakly today.. price surged up from the opening... but I didn't enter simply because there wasn't a signal to do so.. If you observe carefully, stochastics is already in the overbought region..

In order to capture this short morning spurt, you have to enter from last friday, when stochastics frist crossed over from oversold region.. ( green circle ).

The rest of the day was characterised by short ranging candles.. If you looked at S&P Emini, Volume is below 20,000 on a 5 min chart. The market is at a turning point.. and players are confused...

One last point to take note is the negative divergence between price and MACD in the daily charts.. The uptrend is getting sick... I will not be surprised to see a correction at some point.

Posted by Michael Taylor at 5:08 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

The market's getting jittery about oil prices..price is still ranging on...not really in a trending mode..

I was watching the market the whole day with out a single trade.. Why? Because there was no signal for me to enter...

If you look at the charts.. you might feel that with hindsight, I should've gone long... But I would argue that this is infact a dangerous proposistion...

Although there was a downward bias... market is not really trending.. It stayed flat for much of the morning session...

At 12:00 pm, it broke down... why didn't I enter?
1 if you look at stochastics. is it turning down from the overbough region?
2 if you look at Short-term MACD, don't you feel that it is somewhat irregular? Lack of symmetry.

The only positive signal was from Long-term MACD which cut it's signal line... But this is not good enough for me to enter....

Well, I still didn't regret my decision... as you can see for yourself.. what kind of risk I would've put myself into if I forced the trade..

Posted by Michael Taylor at 6:50 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

How's it going? yes, I know, market conditions have been unpleasant lately... ranging on Friday and today...

If you look at the chart above, you will notice that price is ranged bound in a a 10 point box... consolidating... where will it go after that? I don't know.. traders don't predict the market... traders follow the market...

We have entered a region where market direction is not so clear and a major correction might just around the corner... Sit tight and be patient for the big move..

Posted by Michael Taylor at 5:26 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

How's it going lately? I would describe the current market at being stable and volatile... market is still ranging... NOT breaking new highs..
At 8:30 am this morning... May PPI figures were out... and apparently.. it went up 0.9%.. which means inflation concerns are up too.. obviously this is not good news.. but we will leave the interpretation to the market..

From the opening bell, price surged all the way till 10:00 am... I missed this trade, because my system did not provide an entry signal...Stochastics was already in the overbought region and Short-term MACD looked like it could turn down anytime.... it's easy to tell in hindsight that this might be a possible trade... but it's the consistent decisions that you make during trading that makes you money...

After 10:00 am... although there was a slight pullback.. prices ranged for most of the time... notice that Short-term MACD stayed close to the zero-lines? It's easy to get killed in these markets..

Learning point today: Don't be afraid to miss a trade, because opportunities are never ending in a market.

Fundamentals:
The May PPI was up 0.9%. That isn't the good news. It was boosted by a 4.1% jump in energy prices. The good news is that the core rate was up just 0.2%. That was in line with expectations but follows two 0.0% numbers. The trend is clearly not troublesome. The year-over-year increase in the core rate is a modest 1.6%.

Posted by Michael Taylor at 5:23 PM | Permalink | Comments (0) | TrackBacks (0)

5 minutes Chart - Emini Nasdaq 100

Hi,

No trade today. Retail sales are up 1.4% in May and this is a good sign of strong consumer confidence.. economy's still expanding... Good news...

Well, the market reflected that news by gapping up this morning... But today, there is no trade... If you look at the highlighted region.. you might think there is a plausible trade... when stochastics turned up and crossed the moving averages..

However, a point to take note is that Short-term MACD remains uncomfortably near the zero line and If you look at Mid-term MACD, it's even closer to the zero line...

There just weren't enough singals for me to be convinced that price was going up... Had to give it a miss... Chances are always around and you can't capture all trades... Better to be safe than sorry..


Fundamentals:
Rate worries are still resonating with investors, but their confidence level rose once the Commerce Department said that retail sales jumped 1.4 percent in May. This rise was the highest in 16 months and doubled what analysts expected. Investors were also pleased about the Federal Reserve's Beige Book report, which said the U.S. economy kept expanding at a moderate pace in the first part of the second quarter. Bond yields, whose advance caused a pullback in stocks last week and again Tuesday, spiked early Wednesday before falling back with release of the new economic data

Posted by Michael Taylor at 5:55 PM | Permalink | Comments (0) | TrackBacks (0)

5 min Emini Nasdaq 100

Hi,

Yesterday new home sales numbers jumped 16.2% today, existing home sales numbers plunged by 2.6%. The former news is good and the latter news is bad.. Which to believe? Neither..

If you remembered, yesterday saw a 1% decline in most indices despite the good news.. And today, the market just kept on ranging and consolidating... the bad news is suppose to cause a further breakdown... But, did that happen? NO! In fact there was a slight uptrend bias in the overall trend today..

Notice how the Short-term MACD stayed close to the zero line and that price action is dirty... As I was watching the market depth and how the prices jumped, I realized that market was extremely volatile.. it's easy to get killed in such a market. you can be whipsawed out of your position ten times over..

Best decision --> Stay OUT!

Fundamentals:
Sales of existing homes fell a larger-than-expected 2.6% in April from March while the median price of a home sold fell for a ninth straight month.
Troubles in the subprime mortgage market acted as a further drag on housing.

The National Association of Realtors reported Friday that sales of existing homes fell last month to a seasonally adjusted annual rate of 5.99 million units. That was down 10.7% from a year ago and the slowest sales pace since June 2003.

The median price of a home fell to $220,900, an 0.8% fall from a year ago. It marked the ninth straight decline in the median price.

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

5 min Nasdaq Emini 100

Hi,

Market has been ranging since yesterday.. minimum price movements with zig-zag price actions and no clear trend although there is an upward bias in the moving averages....

It is better in this case to stay out of the market... Y? jsut take a look at the so-called possible entry points that I circled in orange. Although it is very clear that price bounces whenever it touches the blue moving average,

ask youself: "Can I really justify the risk/ reward?
Am I being too greedy and wishful that the trade will go my way?
What is the probability of success for such a scenario?"

These are questions that have to come second-nature to you. You can see that Short-term MACD has very dirty movements and Mid-term MACD is hovering near zero line which is really indicative that price movements are bad.. and that it is really a ranging day.. Do the right thing, Stay on the sidelines.

Posted by Michael Taylor at 5:07 PM | Permalink | Comments (0) | TrackBacks (0)

I have finally set myself to the task of compiling a tutorial workbook with detailed trade analysis after numerous requests from my readers. Here is it, this workbok gives you step-by-step instruction on how I view different market scenarios, where to enter, where to exit, where to put the stop loss, profit target, etc.....

You will be trained to think in a discplined manner if you follow through all the exercises in the book. With 24 Case Studies and 6 tutorial style detailed examples, you will be thoroughly drilled until trading becomes second-nature. This workbook builds on the knowledge you have learnt from the previous book, elavating your trading to the next level.

Please refer to top page for more info http://www.daytradingdiary.com

----------------------
What you will learn:

Case Studies

From 24 case studies, how to time the first entry, second entry, where to place the stop loss and where to exit the position. Study these case studies in detail to make trading second-nature to you.

How to integrate the use of daily charts into your trading plan. Learn how a long-term view can be useful in helping to identify potential trouble regions such as support and resistance lines.

How to clearly identify entry and exit signals from the various indicators. Learn how to combine the various signals together that gives a more powerful and accurate signal.

How to avoid potentially lethal market that can cause you to lose alot of money. Trading has nothing to do with being brave, learn how to logically dissect market conditions and make a conscious decision not to trade.

How to expect what the trade scenario will be like tomorrow. A mentally prepared trader has a higher chance of being a profitable trader.

Tutorial Workbook

Designed to drill you on real-life trading scenarios. Some scenarios are meant to be tricky, but these are all taken from real-life scenarios.

Sample trade execution with detailed trade analysis to help you understand why the trade is made in that particular manner. Learn to work out mentally why each trade worked so that you can repeat your success.

Learn to analyze the probabilty of the trade, assessing the risk/reward and identify the signals that confirm your trading decision is correct.

Posted by Michael Taylor at 9:30 AM | Permalink | Comments (0) | TrackBacks (0)

I have finally set myself to the task of compiling a tutorial workbook with detailed trade analysis after numerous requests from my readers. Here is it, this workbok gives you step-by-step instruction on how I view different market scenarios, where to enter, where to exit, where to put the stop loss, profit target, etc.....

You will be trained to think in a discplined manner if you follow through all the exercises in the book. With 24 Case Studies and 6 tutorial style detailed examples, you will be thoroughly drilled until trading becomes second-nature. This workbook builds on the knowledge you have learnt from the previous book, elavating your trading to the next level.

Please refer to top page for more info http://www.daytradeemini.com

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What you will learn:

Case Studies

From 24 case studies, how to time the first entry, second entry, where to place the stop loss and where to exit the position. Study these case studies in detail to make trading second-nature to you.

How to integrate the use of daily charts into your trading plan. Learn how a long-term view can be useful in helping to identify potential trouble regions such as support and resistance lines.

How to clearly identify entry and exit signals from the various indicators. Learn how to combine the various signals together that gives a more powerful and accurate signal.

How to avoid potentially lethal market that can cause you to lose alot of money. Trading has nothing to do with being brave, learn how to logically dissect market conditions and make a conscious decision not to trade.

How to expect what the trade scenario will be like tomorrow. A mentally prepared trader has a higher chance of being a profitable trader.

Tutorial Workbook

Designed to drill you on real-life trading scenarios. Some scenarios are meant to be tricky, but these are all taken from real-life scenarios.

Sample trade execution with detailed trade analysis to help you understand why the trade is made in that particular manner. Learn to work out mentally why each trade worked so that you can repeat your success.

Learn to analyze the probabilty of the trade, assessing the risk/reward and identify the signals that confirm your trading decision is correct.

Posted by Michael Taylor at 9:30 AM | Permalink | Comments (0) | TrackBacks (0)

Emini Nasdaq 100 5 min chart

Hi,

Market gapped up almost 6 points today and the gap just didn't close... price went up and up.. In hindsight, you might be tempted to say, just go long.. that's easy to say, but if you look at he charts,
the price action is choppy and Short-term MACD movements are choppy in a zig-zag manner.. There just wasn't enough signal for me to enter the market.. and I dare say, this is one of the deadliest markets that gets alot of traders killed....

You might be tempted to say that Stochastic has given alot of signals, but this is not accompanied by MACD, the moving averages or price action.. If you look carefully, apart from the gap up of 6 points, price only moved aournd 12 points for the whole day.. I would consider this a ranging day... most of the price movement is taken up by the gap...

Stay out of such a market and save your trading capital for another day!

Posted by Michael Taylor at 5:02 PM | Permalink | Comments (0) | TrackBacks (0)