Monday 19th May 2014 NQ100 1 min chart review
This week I will try to improve the review to include what I am doing right and wrong in each trade, and where I can improve for the next days.
Today we had a move from 570 up to 600 in the morning, but I could not capture much of it. Reasonably happy with my trading today. Scratches saved me from mistakes and trades that didn't work out.
1. Just before the open we had a rejection of our morning highs at 78. I would not normally enter a trade just before the open, but it is possible to short of the rejection. I would be wary of a sudden fast move on the open moving way beyond any stop loss that I would set. But these valid trades before the open are something that I should watch for in future, even if I don't take them.
2. We had a retracement for a long here. I put a long on even though we were approaching the overnight highs above 590, and could have a quick failure. As always support and resistance is only there when it happens, and not because we draw a line on the chart.
3. The demand line from the lows was very steep and tight. I realised then that I was undecided in where to exit. It seemed to hasty to exit directly on such a steep break, because I have been trying to avoid exiting too quickly since last week. I waited until we had a lower high along with the line break, which really is the place to go short, but I was thinking about my exit first of all. Exit descisions need to be made in advance.
4. There was no big drop, instead price started making a tight range for a number of minutes below the overnight highs, before attempting to break above the overnight highs again, and failing.
5. After we broke below the congestion we had a retracement for a short which is stopped out quickly. Better to be stopped out quickly than stopped out for a large amount. Should I take that trade, when we are moving back to the mean of the opening range? Maybe not.
6. Supply line break with retracement that held above the overnight highs. Entered long here. The 600 mark proves difficult to get past again. I left my stop just below the supply line from the open, and it eventually triggered at 96.
7. We got a retracement after the demand line break, but traders put the price into a very tight 2 point range for 8 minutes, so I would not go short from a break down of this until we have another retracement.
8. Entered a long at 604, which was stopped out in a few minutes. I think this trade was an error even if it had worked. The retracement was a right tick one, which I have not used much. When I stand back from it, it looks like an attempt to get a trade on when none is available. I need to remove these, even on the occasions that they workout by accident.
9. We have held above 600 for more than 15 minutes. This looks like potential strength for a move upwards.
10. Long at 605.25 on the retracement from the breakout of our congestion. Not expecting anything of this trade, given that we are now after 11am. This one moved up straight away. As always we can never tell which trade is going to work, just have to take them as they appear.
This week I will try to improve the review to include what I am doing right and wrong in each trade, and where I can improve for the next days.
Today we had a move from 570 up to 600 in the morning, but I could not capture much of it. Reasonably happy with my trading today. Scratches saved me from mistakes and trades that didn't work out.
1. Just before the open we had a rejection of our morning highs at 78. I would not normally enter a trade just before the open, but it is possible to short of the rejection. I would be wary of a sudden fast move on the open moving way beyond any stop loss that I would set. But these valid trades before the open are something that I should watch for in future, even if I don't take them.
2. We had a retracement for a long here. I put a long on even though we were approaching the overnight highs above 590, and could have a quick failure. As always support and resistance is only there when it happens, and not because we draw a line on the chart.
3. The demand line from the lows was very steep and tight. I realised then that I was undecided in where to exit. It seemed to hasty to exit directly on such a steep break, because I have been trying to avoid exiting too quickly since last week. I waited until we had a lower high along with the line break, which really is the place to go short, but I was thinking about my exit first of all. Exit descisions need to be made in advance.
4. There was no big drop, instead price started making a tight range for a number of minutes below the overnight highs, before attempting to break above the overnight highs again, and failing.
5. After we broke below the congestion we had a retracement for a short which is stopped out quickly. Better to be stopped out quickly than stopped out for a large amount. Should I take that trade, when we are moving back to the mean of the opening range? Maybe not.
6. Supply line break with retracement that held above the overnight highs. Entered long here. The 600 mark proves difficult to get past again. I left my stop just below the supply line from the open, and it eventually triggered at 96.
7. We got a retracement after the demand line break, but traders put the price into a very tight 2 point range for 8 minutes, so I would not go short from a break down of this until we have another retracement.
8. Entered a long at 604, which was stopped out in a few minutes. I think this trade was an error even if it had worked. The retracement was a right tick one, which I have not used much. When I stand back from it, it looks like an attempt to get a trade on when none is available. I need to remove these, even on the occasions that they workout by accident.
9. We have held above 600 for more than 15 minutes. This looks like potential strength for a move upwards.
10. Long at 605.25 on the retracement from the breakout of our congestion. Not expecting anything of this trade, given that we are now after 11am. This one moved up straight away. As always we can never tell which trade is going to work, just have to take them as they appear.