The ER2 Trading Journal

The basic theory is:

When the long-term MACDs are going up, don't consider to go short, buy on dips when the short-term MACDs are turing blue. When the long-term MACDs are trending down, consider to go short when the short-term MACDs are turing red/yellow.

When the trend is not clear, look 667/550 tick charts for direction.
 

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I also told him how to use the fib retracements to play ES. The fib retracement/extension worked perfectly today on ES, it was topped at exactly the 200% fib extension at 1272.50.
 
I don’t know about you guys but I am finding it really frustrating trading this market. It’s obvious PPT won’t allow markets to go into correction, at least not by the end of the year, and it’s just killing the volatility. I think it’s better to forget about Index futures and concentrate on FX futures for the time being.
 
From what I found by observing the market for the past several days, this market is not good for quick scalping. It is good for making one or two swing trades in a day. Using a bigger timeframe. Short it around 10:00 AM, or 11:15 AM, or around R1/R2/R3, hold on to it for several hours, cover it after lunch or around 2:00 PM, or near S1/S2/S3. then buy it around S1/S2/S3, sell it near the pivot or R1 in an hour or two. I see this is the only way to make some serious points in the day.





Quote from K.C.:

I don’t know about you guys but I am finding it really frustrating trading this market. It’s obvious PPT won’t allow markets to go into correction, at least not by the end of the year, and it’s just killing the volatility. I think it’s better to forget about Index futures and concentrate on FX futures for the time being.
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Or switch to trade ES, I've been watching ES/ER2 charts and discuss it with my ES trading friend. I found ES is much easier to trade than ER2 these days. ES has a much smoother moving pattern change. You can take a look at ES's chart, then compare it with the ER2.

The MACD TA indicator change (top and bottom) is much more obvious on ES.
 

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Alright, after waited for 3 days, my fund is finally settled, now it is on the way back to IB. I hope I could start to trade either by tomorrow or by next Monday.

I also got plenty of rest, I felt much better and now stress free. I did many simulated trades in the past three days on ES and ER2. I will stick with 550/ 667/230 tick charts and try to make no more than 6 trades in a day. I'll post my trading rules and the setup one by one.

I hope you guys made some serious points in the past couple days.
 
Since ES chart gives me clear signals for the day, I would go play ES for the day.

Short signals on all period at 1282.

667 tick down trend, 550 chart downtrend. MACD is going below 0.

210 tick downtrend.
 
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