Thursday, August 6, 2009

06th Thursday




High of the Day: Camarilla H3
Morning Reversal: 3/8 Murry Math
Low of the Day: Prior Day Low
Close of the Day: 200 EMA

Profit 4 R optimized or
Loss 2,6 R trading all signals

Today I learned 3 key things that will improve my trading:
  1. Trade the structure of the market discretionary, as indicators alone make no complete trading system: Is the trend exhausing or beginning, is the timing right, is the resistance / support far away. Where can you get in with risking not more than 5 Points?
  2. You can make a living by just trading the dax opening hour 3am to 4 am and the us stock market opening hour 9.30 am to 11.30 am, the market action in between is often confusing.
  3. Trade discretionary by combining all methods you learned from profitable automated systems that work great alone but even better in combination.
Setup Rules:
  • Use Short Setup when High of Last Bar is above 50 EMA and 50 EMA is falling as well as Elliot Osciallator is below Zero.
  • Same as every day dont trade setups from 7.10 to 8.06 am
  • Trades between 4.06 and 6.30 are usually countertrend trades that should be closed at support or resistance and in case the signals occurs on highs or lows of the day, the trade should not been taken as in the past longer term trends usually start in the time from 3 to 4 am or after 6.30 am
Exit Rules:
  • Trail Long Stop to Low minus 8 ticks of Last Bar when the High of Last Bar went above Camarilla H3, or directly at H3 if there where already 2 swings up
  • Exit short on 3th target but no between 9.30 and 10.40 as in these times prices tend to go a lot further than their projected targets.

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