S/R

[erierambler]

both the ES and NQ held their respective previous days lows. they each had wider spread with somewhat higher volumes for the day.
on the NQ , as previously mentioned 1508 is still the biggy to get through.

 

[sulong]

Daily volumes, $NDX 3rd day in a row of lower than ave.Including the 40 pnt'er on fri.
V on $spx on fri. was ave.but next 2 days lower than ave

$INDU - 4 days in a row with less than ave. V

It just seems to me that theres not too much interest in buying at these levels.
We've got some reports due out Thur. and fri. this week, and holiday on monday.

So I would expect the market to be pretty excited the last 2 days this week, maybe we'll get to see some cards.

 

[dbphoenix]

I assume you didn't take the opening trade yesterday?

 

[sulong]

Quote from dbphoenix:

I assume you didn't take the opening trade yesterday?

No,

no entry untill the afternoon.

I sim traded the morning, and was wrong with the first 3.

After the hi of the day was put in, I felt confident I was on the right track.

 

[dbphoenix]

Why "wrong"?

 

[sulong]

Quote from dbphoenix:

Why "wrong"?

Before yesterdays open, I wrote out my thoughts on what I thought might happen.

So, I was short biased going in to the day, I was looking for the 83 area to be tested.

I entered 1st short ( sim. ) at a test of the 96.5 area, it gave no follow through.

A very short time later, I tried 2 more times, with the same results.

Then the 10:43 ( EST ) bar with relative high volume made me question my whole idea about testing the 83 area.

So I sat back and watched and waited.

 

[dbphoenix]

Given the congestion in the 1490 area, and the S1 that day, why did you think that 83 would be tested?

(Not trying to nail you to the wall; you didn't make your notes here)

 

[sulong]

Quote from dbphoenix:

Given the congestion in the 1490 area, and the S1 that day, why did you think that 83 would be tested?

(Not trying to nail you to the wall; you didn't make your notes here)

Well, ( sheepish grin )

I was reviewing some notes I got from T lo's site, and I was Thinking to myself, What would hurt the most traders?
And I thought there would be a lot of stops around the 90 area,

So at the time, it seemed right to me that those stops would be targeted, and the next S would be at 86.

Maybe I was trying to out smart my self.
Anyway, thats how my thoughts for yesterday got started.


edit: I meant 83

 

[dbphoenix]

T is a smart trader. But remember what she says about tests. The low of the previous day would have (and did) represent one of those tests (the S1 was just an added element). When sellers didn't appear there, it was unlikely that they were going to appear at all (at least, until a subsequent and separate test). Therefore, a continued bias to the short side would have been inappropriate.

I've read your criteria for determining what to you will be important S/R, but, without getting into tactics, what criteria do you use to enter? Do you wait until you get to those S/R levels, then see what the action is, or do you form a bias, then enter before those levels are reached?

 

[sulong]

Quote from dbphoenix:

.

I've read your criteria for determining what to you will be important S/R, but, without getting into tactics, what criteria do you use to enter? Do you wait until you get to those S/R levels, then see what the action is, or do you form a bias, then enter before those levels are reached?

When I'm trading with live bullets, I'll ( try to ) only enter at S/R levels.

When I have the sim turned on, I'll experiment with a preconceived bias, rets, double tops and bottoms, ect.
When I do this I rarely have a positive day.