ES Journal Archive (2009 - 2010)

JSSPMK · Oct 30, 2009

Try this one 1043 - 1040.50 (SPX)

Lawrence Chan · Oct 30, 2009

1-tick higher low mini DB.

EURUSD higher low too.

Done for the day for these guys I guess.

ammo · Oct 30, 2009

Quote from stella:

Looks like u're right! And looks like I might have exited too early too.

Even after a couple of yrs of trading, I still can't resist taking a fat profit when I have one. How does one learn to curb that temptation?

u can satisfy your hunger but taking a few off

JSSPMK · Oct 30, 2009

Timber!!

stella · Oct 30, 2009

Quote from ammo:

u can satisfy your hunger but taking a few off

Good Lord! Regretting big time now. I think I'd just log off now.

Profitable trading to all.

Lawrence Chan · Oct 30, 2009

Quote from Lawrence Chan:

For down trend to continue, ES and NQ should break to a new daily low by close. As a minimum, close below previous month close. That automatically imply low of this month in play at 1020 area.

That will setup for potential touch down at 1000.

=D

New low done.

3 hours to close.

millionaire7 · Oct 30, 2009

what is mean-reversion trade...thanks

Quote from wave:

the mean-reversion traders are making a killing though

cipherscribe · Oct 30, 2009

Quote from millionaire7:

what is mean-reversion trade...thanks

Others can probably put it more specifically, buts it's a methodology of trading against breakouts, believing all highs and lows will revert back to their mean (or average trading price). It's shorting the highs and buying the lows.

It would have worked this morning, but you would be sorely out of pocket since 11:00am :-)

ASusilovic · Oct 30, 2009

Quote from Lawrence Chan:

They thought they are bigger than the whole world.

I see two 5min 100k volume bars. Insane volume. By the way : touched lower DAILY BB. Weekly SMA at 998 !!!!

volente_00 · Oct 30, 2009

Quote from cipherscribe:

Others can probably put it more specifically, buts it's a methodology of trading against breakouts, believing all highs and lows will revert back to their mean (or average trading price). It's shorting the highs and buying the lows.

It would have worked this morning, but you would be sorely out of pocket since 11:00am

ES is an instrument that tends to exhibit quite a bit of mean reversion. That is why a lot of people fail at it because they try to trade breakouts and end up getting stopped out before the run resumes after reverting to the mean. The hardest part about contrarian trading is not getting in the trade, but letting it run as it either breaks up or down. You will never buy the low or sell the top by chasing a breakout.