Preview 1st Week of November

Looking forward to see next week:
Like last monday to see some consolidation in the morning then a strong move after 10 am, then on tuesday a consolidation, wednesday trend continuation, thursday reversal and friday again trend continatuion.

For the S&P looking to break the daily swing low and then consolidate.
Major Breakdown on crude oil.

Overall for November the 3rd week could bring the uptrend back with 3 swings up till Years end.

30th October Friday

Goals for today:

1. Earn at least 40 Points by entering and exiting short and/or long trades on 1 min FDAX chart in a Decision Point Area from the 5 Min Chart.
2. Earn at least 100 Points by entering and exiting short and/or long trades on a 1 Min Chart in a Decision Point Area from the 5 Min Chart.
   
3. Earn at least 10 Points by entering and exiting short and/or long trades on 5 min ES chart in a Decision Point Area with 2 contracts.
   
4. Don't make anymore trades once the profits are cashed in.

Plan to archive these goals:
Determine trend, entry and exit points, times where I have to make a decision.

Like last Friday my plan is to go short in the early morning after a double top, cash in some profits before the 8:30 am news and go short again after the 9:55 news (due to volatility a low risk entry must be found) looking forward to close my positions at the end of the session.

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I learned to focus on low risk entries not trying to chase breakout point, expecting prices to retrace 110% before they continue moving in the primary direction. Being in a position before volatility areas (or closing the trade and re-enter with higher risk). I also learned once again that there are no magical indicator (like the flux capacitor that might work in sideways but not trending markets). Last but not least its best to rely on myself and the method that I am using to always trade every day profitable: Sell below a red 1 min bar in a 5 min DP area. Vise versa for longs.

29th October Thursday

Goals for today:

1. Earn at least 40 Points by entering and exiting short and/or long trades on 1 min FDAX chart in a Decision Point Area from the 5 Min Chart.
2. Earn at least 200 Points by entering and exiting short and/or long trades on a 1 Min Chart in a Decision Point Area from the 5 Min Chart.
   
3. Earn at least 10 Points by entering and exiting short and/or long trades on 5 min ES chart in a Decision Point Area
4. Don't make anymore trades once the profits are cashed in.

Plan for today like last Thursday is going short on double tops and using an entry after new spike lows for 2 potential uptrends, so not more than 4 trades today.

Well we did not get new spike lows but double bottom on 5 am provided a good long entry point, also the flux capacitor prediction told me that from 4:54 till 9:40 there will be an uptrend...

The best thing today was that just around 8:30 we where at a 5 Min DP so entering long in the predicted direction of the flux capacitor indicator was very very good, especially with the predicted end of trend in the morning around 12:30 there was enough time to get some re-entries.

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28th October Wednesday

Goals for today:

1. Earn at least 40 Points by entering and exiting short and/or long trades on 1 min FDAX chart in a Decision Point Area from the 5 Min Chart.
2. Earn at least 200 Points by entering and exiting short and/or long trades on a 1 Min / 30 Sec. CL chart in a Decision Point Area from the 3/5 Min Chart.
   
3. Earn at least 10 Points by entering and exiting short and/or long trades on 5 min ES chart in a Decision Point Area
4. Don't make anymore trades once the profits are cashed in.

The early morning was pretty much short only but even in a downtrend the little bumps and stops where perfectly forecast by the Flux Capacitor.

The Flux Capacitor Indicator is suggesting a sell around 8.36 another sell around 9:40 short covering at around 10:36 and the end of the move around 13:05. Well i have to learn the indicator better, I think the best way to use it is to determine the overall trend for the day, so looking at the powerzone osciallator it suggested a trend to start from around 9:50 to about 13:07 with a pause inbetween from 11:00 am till 12:30 and thats what happend.

From 8:00 am till the close one straight move in the crude oil market. Due to news the move started 8:30 am but yes it was a very good downtrend.

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27th October Tuesday

Goals for today:

1. Earn at least 40 Points by entering and exiting short and/or long trades on 1 min FDAX chart in a Decision Point Area from the 5 Min Chart.
2. Earn at least 100 Points by entering and exiting short and/or long trades on a 1 Min / 30 Sec. CL chart in a Decision Point Area from the 3/5 Min Chart.
   
3. Earn at least 10 Points by entering and exiting short and/or long trades on 5 min ES chart in a Decision Point Area
4. Don't make anymore trades once the profits are cashed in.

Today could be like the 13th of October where we first had some up and down swings then a longer trend and as the US market opened a crash.

Indeed the morning session was pretty similar compared to the 13th so lets see if we get this long uptrend till 8 am and then the sell off.

Today I also gave the Flux Capacitor Indicator a try and indeed it "predicted" all turns on the S&P and Crude Oil correctly, so I have to see if my performance would benefit from the addition of this indicator to my arsenal.

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Profit 30 Points Automatic Overbought & Oversold System FDAX

26th October Monday

Goals for today:

1. Earn at least 40 Points by entering and exiting short and/or long trades on 1 min FDAX chart in a Decision Point Area from the 5 Min Chart.
2. Earn at least 100 Points by entering and exiting short and/or long trades on a 30 Sec. CL chart in a Decision Point Area from the 5 Min Chart.
   
3. Earn at least 10 Points by entering and exiting short and/or long trades on 5 min ES chart in a Decision Point Area
4. Don't make anymore trades once the profits are cashed in.

Starting with an up move and then reversing to a short trend the DAX traded pretty much sideways in the morning. I was glad that I finally keep holding the trades till the 5 min DP Area and not exiting to early at the 1 Min Targets.

Crude Oil was more bullish and since I assumed it will trade down to the 5 Min Target like the DAX the short trade was pretty much a break even trade, so I will look at the 3 Min Targets for Crude Oil in the Future.

I still expecting to see a rally when the US market opened, but I will trade carefully watching for signals in both directions.

After the US market opened I was confused, massive down move before the open and then I had to reverse to long. I need to train this market phase better, the signals are perfect but my execution skill lack.

Finally at 11:11.11 am I got the short entry that will set the direction for the days (weeks)

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Review 3rd Week of October

What worked really well was Trading Decision Point Areas and the automatic Overbought/sold system with the CMO indicator.

For my scalping method I am sticking to the 5 Min Decision Points there are perfect when keeping following things in mind:

• In Decision Areas its still a valid long entry if there is a large range bar and price runs above this bar.
  
• Same for blue or gray large range bars if the clearly break a structure its a valid short entry.
  
• Its wise to not exit a long or short trade if the red or blue bar in the Decision Area would not serve as a countertrend entry (if the bars are very narrow)
  
• Especially during volatile market phase its wise to use every break above a blue or below red as an entry to have enough buffer to exit the trade once it goes in the wrong direction at breakeven
  
• On longer lasting trends drawdowns of 20 Points can happen, but the long trade is only over at a break below a red bar in a decision point area.
• Exiting near double tops below red bars with high volume
• Enter on a bar that has a large void above for longs and below for short
  
• Avoid entering just before the open and be aware that the stop should always be above the decision point areas for short. Only when the direction and momentum is clear stops can be set above the red entry bar.
  

23th October Friday

Goals for today:

1. Earn at least 20 Points by entering and exiting short and/or long trades on 1 min FDAX chart in a Decision Point Area from the 5 Min Chart.
2. Earn at least 50 Points by entering and exiting short and/or long trades on a 1 min CL chart in a Decision Point Area from the 5 Min Chart.
   
3. Earn at least 5 Points by entering and exiting short and/or long trades on 5 min ES chart in a Decision Point Area
4. Don't make anymore trades once the profits are cashed in.

After the news on 10 am get released we should be seeing a downtrend, to yesterdays DP area. So there are two ways to play this: a) Going short with an overbought situation after the 8.30 am news or going short after 10 am on a pullback on the lower timeframe chart.

Going short on the lower timeframe worked out since the 30 sec. chart provided an excellent entry opportunity with volume confirmation, so the old way like they teach at fxbootcamp to take a in the direction of the breakout after the news on a pullback direction is simply wrong.

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22th October Thursday

Goals for today:

1. Earn at least 5 Points by entering and exiting short and/or long trades on 1 min FDAX chart in a Decision Point Area from the 5 Min Chart.
2. Earn at least 15 Points by entering and exiting short and/or long trades on a 1 min CL chart in a Decision Point Area from the 5 Min Chart.
   
3. Earn at least 2 Points by entering and exiting short and/or long trades on 5 min ES chart in a Decision Point Area
4. Don't make anymore trades once the profits are cashed in.

We have a situation that the DAX has to find support in the 5750 area on the 5 min chart or continue trading lower. However the 10 Min Charts suggest trading down to 5725 area, anyway looks like there are some points left on the short side before we bounce back up.
Daily charts nevertheless suggest the correction down might do all the way down to 5380, not in one day of course but 2-3 big short selling days and we could be there.

On such days its better to just use the 5 min charts, as there are no trends developing its better to stay out of the chop and accept that double tops build a resistance, so aiming for goals in decision areas ist not so clever after the US market opened.

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