Matcha's Dow E-mini Journal

[NoDoji]

Quote from Matcha:

I now decide I should either let market stop me out or I should get out wait for BO pullback. If I don't get it. then just let it go...

I agree, it's good to get in the habit of letting the market prove your thesis right or wrong. There are some situations where maybe you want to exit quickly, like a momentum play that stalls right out of the gate (failed b/o). Just get out and re-evaluate.

But a standard trade setup like your longs need to time to prove themselves, because you're in midday consolidation. Going long makes sense because there were only 2 pushes off lows and the previous resistance zone was holding nicely as support.

It's funny, because I've had so many trades where price is rapidly on its way to my stop and I am absolutely certain it's all over, and there's no way price could possibly come to a stop and reverse before taking me out first, and then voila! the S/R level holds to the exact tick and the trade becomes a fantastic runner in my favor.

"It ain't over till it's over." - Yogi Berra

 

[Redneck]

Quote from Matcha:

I will do a better job.....tomorrow

That is all any of us can do....


One day at a time.... One step at a time.... One trade at a time


Keep on - Keepin on

RN

 

[Snowman75]

Quote from NoDoji:

I agree, it's good to get in the habit of letting the market prove your thesis right or wrong. There are some situations where maybe you want to exit quickly, like a momentum play that stalls right out of the gate (failed b/o). Just get out and re-evaluate.

But a standard trade setup like your longs need to time to prove themselves, because you're in midday consolidation. Going long makes sense because there were only 2 pushes off lows and the previous resistance zone was holding nicely as support.

It's funny, because I've had so many trades where price is rapidly on its way to my stop and I am absolutely certain it's all over, and there's no way price could possibly come to a stop and reverse before taking me out first, and then voila! the S/R level holds to the exact tick and the trade becomes a fantastic runner in my favor.

"It ain't over till it's over." - Yogi Berra

Yeah, its a tough one. Sometimes taking yourself out is the right thing to do and sometimes letting the market prove you wrong is the right thing to do. But also sometimes, you let the market prove you wrong and just after it proves you wrong, it reverses and pisses the hell out of you.

Sortof like golf It is what it is...

 

[Redneck]

Matcha,

I hesitate to post this morning for concern it may mess with your trading (mind a little) today – please don’t let it
These are simply some random thoughts I hope will benefit


Every trade’s outcome is uncertain

This has to be the center of what we know – about trading…

It must be what we build the rest of our trading upon… it must be what all of our actions are based on… and it must be what all of our expectations are based on

Once we get this engrained – it will mandate how we trade (our actions, our expectations, our willingness to accept losers and winners)

========================================================================================
Context

Tells you which way price is headed - if only for the moment (refer to uncertain)

EMA – slanted up… or down… or sideways
Lines – either horizontally…, or diagonally
A support line – price is bouncing off it (price ain’t going thru it, so price must be going up) (it’s my – if price ain’t doing this… then it must be doing that – saying)

HL = price moving up
LH = price moving down
Unless of course price in is a range and creating the HL, and or LH… But then a couple of horizontal lines, drawn off a higher time frame would tell you that wouldn’t they….

Keep your context simple – use just enough to tell you which way price is headed – if only for that moment

btw I have a theory – the more context one requires – the less one trusts one’s own eyes (a five year old could trade, why, because they believe exactly what their eyes see)
=========================================================================================

Set ups

Tells you where to exit – either for a loss…, or profit

(most think a set up tells you where to get in – however imo that is what context is for...

Remember the two questions we ask before entering – they create our set up….

Context is already telling us what price is doing, and which way we should be trading… right now

==================================================================================

Out of a range, big moves are born (like a rubber band being wound up, then released)

And just before the big move occurs, price displays its most volatile back and forth behavior – why…

Who controls order flow

Who knows what type of orders are queued/ getting queued up

Who wants as many – either on the side lines…, or trapped on the wrong side – so they can profit off of the ultimate move

(recall the three groups of traders I mentioned – which would this describe)

The volatile back and forth action, in a range – is a dead giveaway something is about to happen – learn to spot it and exploit it

Conversely – learn not to get caught up in it/ become confused by it….
========================================================================================
Price only does a couple of things – ranges then trends… ranges then trends


Like I said – these are simply some random thoughts

Good Trading
RN

 

[jokepie]

Quote from Redneck:

Matcha,

I hesitate to post this morning for concern it may mess with your trading (mind a little) today – please don’t let it
These are simply some random thoughts I hope will benefit


Every trade’s outcome is uncertain

This has to be the center of what we know – about trading…

It must be what we build the rest of our trading upon… it must be what all of our actions are based on… and it must be what all of our expectations are based on

Once we get this engrained – it will mandate how we trade (our actions, our expectations, our willingness to accept losers and winners)

========================================================================================
Context

Tells you which way price is headed - if only for the moment (refer to uncertain)

EMA – slanted up… or down… or sideways
Lines – either horizontally…, or diagonally
A support line – price is bouncing off it (price ain’t going thru it, so price must be going up) (it’s my – if price ain’t doing this… then it must be doing that – saying)

HL = price moving up
LH = price moving down
Unless of course price in is a range and creating the HL, and or LH… But then a couple of horizontal lines, drawn off a higher time frame would tell you that wouldn’t they….

Keep your context simple – use just enough to tell you which way price is headed – if only for that moment

btw I have a theory – the more context one requires – the less one trusts one’s own eyes (a five year old could trade, why, because they believe exactly what their eyes see)
=========================================================================================

Set ups

Tells you where to exit – either for a loss…, or profit

(most think a set up tells you where to get in – however imo that is what context is for...

Remember the two questions we ask before entering – they create our set up….

Context is already telling us what price is doing, and which way we should be trading… right now

==================================================================================

Out of a range, big moves are born (like a rubber band being wound up, then released)

And just before the big move occurs, price displays its most volatile back and forth behavior – why…

Who controls order flow

Who knows what type of orders are queued/ getting queued up

Who wants as many – either on the side lines…, or trapped on the wrong side – so they can profit off of the ultimate move

(recall the three groups of traders I mentioned – which would this describe)

The volatile back and forth action, in a range – is a dead giveaway something is about to happen – learn to spot it and exploit it

Conversely – learn not to get caught up in it/ become confused by it….
========================================================================================
Price only does a couple of things – ranges then trends… ranges then trends


Like I said – these are simply some random thoughts

Good Trading
RN

+1 Dear..!!

 

[Matcha]

Small loss but happy with my discipline today. I didn’t try to short the break down near LOD neither did I try to buy horizontal flag at HOD. I also did not take a reversal trade and just let it pass me by and waited for a pullback instead. When the best looking setup shows up I went in without too much anxiety and let market take out my stop.

PnL: -$20;-4 pts 2 trades.

 

[Matcha]

Quote from Redneck:

.......

Every trade’s outcome is uncertain

This has to be the center of what we know – about trading…

It must be what we build the rest of our trading upon… it must be what all of our actions are based on… and it must be what all of our expectations are based on

Once we get this engrained – it will mandate how we trade (our actions, our expectations, our willingness to accept losers and winners)

========================================================================================
Context

Tells you which way price is headed - if only for the moment (refer to uncertain)

EMA – slanted up… or down… or sideways
Lines – either horizontally…, or diagonally
A support line – price is bouncing off it (price ain’t going thru it, so price must be going up) (it’s my – if price ain’t doing this… then it must be doing that – saying)

HL = price moving up
LH = price moving down
Unless of course price in is a range and creating the HL, and or LH… But then a couple of horizontal lines, drawn off a higher time frame would tell you that wouldn’t they….

Keep your context simple – use just enough to tell you which way price is headed – if only for that moment

btw I have a theory – the more context one requires – the less one trusts one’s own eyes (a five year old could trade, why, because they believe exactly what their eyes see)
=========================================================================================

Set ups

Tells you where to exit – either for a loss…, or profit

(most think a set up tells you where to get in – however imo that is what context is for...

Remember the two questions we ask before entering – they create our set up….

Context is already telling us what price is doing, and which way we should be trading… right now

==================================================================================

Out of a range, big moves are born (like a rubber band being wound up, then released)

And just before the big move occurs, price displays its most volatile back and forth behavior – why…

Who controls order flow

Who knows what type of orders are queued/ getting queued up

Who wants as many – either on the side lines…, or trapped on the wrong side – so they can profit off of the ultimate move

(recall the three groups of traders I mentioned – which would this describe)

The volatile back and forth action, in a range – is a dead giveaway something is about to happen – learn to spot it and exploit it

Conversely – learn not to get caught up in it/ become confused by it….
========================================================================================
Price only does a couple of things – ranges then trends… ranges then trends

...

RN:
I included all of the above in my trading plan. And I will read it every morning to myself.
It will also be the learning guide to help me read and understand market.
I will learn them step by step. Once at a time.
Thank you!
M

 

[luckylucy]

Quote from Matcha:

RN:
I included all of the above in my trading plan. And I will read it every morning to myself.
It will also be the learning guide to help me read and understand market.
I will learn them step by step. Once at a time.
Thank you!
M

I will do that to, Thank you

 

[PatientOperator]

Quote from Matcha:

Small loss but happy with my discipline today. I didn’t try to short the break down near LOD neither did I try to buy horizontal flag at HOD. I also did not take a reversal trade and just let it pass me by and waited for a pullback instead. When the best looking setup shows up I went in without too much anxiety and let market take out my stop.

PnL: -$20;-4 pts 2 trades.

Hi Matcha,

Good exercise of discipline.

Just watching for me today. It's a narrow range market. Looks like big trending days are coming up soon!

--po

 

[NoDoji]

I like your long setup a lot.

Once it failed, but pivoted off another HL, a symmetrical triangle formed. Symmetrical triangles make me nervous (I'm never exactly sure where to play the breakout), but this one was nice. It never triggered an upside break (the upper TL break failed quickly without quite hitting the previous high, thereby leaving another LH), so a short at the break of the failure bar, which now contains trapped longs, should run price at least to the previous support level of the lower TL. If that breaks, you hold for more; if buyers step in there, you can get out b/e and re-evaluate.