Wednesday, March 31, 2010

31th March Wednesday






FDAX Trades (after 3 am open: up move, down move then side):
  • 3:00 am long
  • 4.05 am long
  • 4.20 am short
  • 4.45 am long
  • 6.00 am 6.40 am short
  • 6.50 am long
  • 8.05 am long
  • 8.15 am short
  • 9.05 am short
  • 9.19 am and 9.38 am long
  • 10.15 am long
  • 10.40 am - 11.10 am short
  • 11.20 am long
  • 2.30 pm short
  • 3.46 pm long
Crude Oil Trades:
  • 2.25 am long
  • 3.20 am short
  • 3.50 am long
  • 4.30 am short
  • 4.50 am long
  • 6.00 am short
  • 6.30 am long
  • 7.20 am short
  • 8.05 am long
  • 8.20 am short
  • 10.10 am short till 10.30 am
  • 10.31 long
  • 10.40 short
  • 11.50 long
  • 11.20 long
  • 1.19 am long
  • 2.30 am short
  • 3.45 pm short
Profit 5 Points Automatic Reversal System ES
Profit 40 Points MTP Manual DP System FDAX
Profit 100 Points MTP Manual DP System CL

Tuesday, March 30, 2010

30th March Tuesday








FDAX Trades (after 3 am open: Up move, down trend)
  • 2 am long
  • 3.15 am short
  • 4.00 am long
  • 4.10 am and 4.40 am short
  • 5.55 am short
  • 6.30 am long
  • 8.20 am short
  • 8.35 am long
  • 9.30 am short
  • 9.39 am long
  • 10.00 am short
  • 10.40 am long
  • 11.00 am short
  • 12.15 am short
  • 2.00 pm long (2nd entry 3.30 pm)
Crude Oil Trades:
  • 2 am long
  • 3.15 am short
  • 5.05 am long
  • 7.40 am short
  • 8.00 am long
  • 8.50 am long
  • 9.10 am short
  • 9.40 am long
  • 10.15 am short
  • 12.00 am short
  • 1.40 pm short
  • 2.00 pm long
Profit 4 Points Automatic Reversal System ES
Profit 40 Points MTP Manual DP System FDAX
Profit 100 Points MTP Manual DP System CL

Monday, March 29, 2010

29th March Monday








FDAX Trades (after 3.10 am down move then up move then down trend)
  • 3.20 am long
  • 6.30 long
  • 8.15 am short
  • 9.30 am long
  • 9.50 am short
  • 10.15 am long
  • 11.10 am short
  • 12.20 am long
  • 2.20 pm
  • 3.10 pm long
Crude Oil Trades:
  • 3.20 am long
  • 4.55 am short
  • 7.20 am short
  • 8.00 am long
  • 8.55 am long
  • 9.50 short
  • 10.15 am long
  • 2.10 pm long
Profit 4 Points Automatic Reversal System ES
Profit 40 Points MTP Manual DP System FDAX
Profit 100 Points MTP Manual DP System CL

Sunday, March 28, 2010

Trading Plan: High or Low Volatility Entries

Trading Plan: Important Entry Rules





  • Know in advance where you move you stop to breakeven, this way you will not enter short trades run into support 1 sec. after entry. As all short entries are either breakdowns or pullbacks with enough room to the last support level, so there is always time and space to place a breakeven stop before price reaches the support level
  • Continutation Trades can be made on pullbacks to the moving average line
  • Continuation of a long trade can be made above the price that stopped you out
  • Dont enter on inside bars but with a sell stop order below a red bar that has a higher high than previous bar
  • On countertrend trades wait till there is a red dot before looking for red bars and trendline break to short
  • Waiting for a close above a trendline to go long
  • Keeping the Stop below the blue entry bar
  • If the high of the last blue bar is too far away after a trendline break, wait for a pullback or for a new blue bar.
  • Trail stop on trendline

Saturday, March 27, 2010

Trading Plan: Timing











With the knowledge that in a couple of minutes the market will trade higher or lower its much more saver to enter a reversal trade. Sometimes there is a red bar and a red dot in a decision point area, on such events its absolutly safe to enter a trade without any more confirmation.

More often price is in a choppy range, so waiting for a trendline break is important to keep the risk low.

Exiting at targets in DP areas is still the best way to make profits, but to reduce the time in market its wise to not take the reversal signal before a confirming buy or sell dot appears on the screen or will appear within some minutes .

The historical buy or sell dots will also explain why in a down trend there are some rapid up moves. The trend however is not broken till a trendline is broken, so the dots really help you holding on to winning positions.

Sometimes moves can happen very quickly therefore a stop order at the trendline break level can help you getting into the move earlier.

Remember two things are needed for a valid long entry: trendline break or large range bar AND a price above a blue bar.

The setups when to look for those entry conditions is clear: In a Decision Point area or at a point in time when price also moved in the past towards the favourable direction.

So especially in choppy market conditions the breakout direction can be identified prior to the breakout and then the positions can be held until the polygonal moving average changes direction again.

Pretty complex stuff but actually quite easy to understand if you study these charts.






Trading Plan: Bid and Ask Price


If people are buying more the ask than the bid price
the long trend is likly to continue.

If people are selling more the bid than the ask price teh short trend is likly to continue.

Trading Plan: 40 Points Profit Target (FDAX) & Reversal Rule


For Reversal Trades I use a trendline break as confirmation

Knowing that every big move in the FDAX will be maximum 40 points, I looking for reversals at that point

Trading Plan: Timing


Predicting how the market will behave at a certain week day can be done by analysing prior weekdays.

Often times can the short term look back to just the last weekday tell you when the trend will start today.

The medium term view (last 2 weekdays) should fit to the overall trend of the market, so in our example more bullish on friday morning.

However the long term view (last 4 weekdays) gives you the general mood, as you can see in our example friday mornings are usually choppy, therefore eventhough they are trending for the last 2 weeksdays its better to trail stops not too aggressive to avoid getting stopped out.

No matter which timeframe is used the bull trend always reached on 6.26 am its climax, does
this mean its time to short then? No. It depends on Market condition, if there is no save short entry possible its better to forget the few points that can be made on the down move but to concentrate on a re-entry long after 8 am

Same logic for the 10 am news, if price already sold off at 9.40 there is a good chance for a rally prior to the news, even if the upmove looks small compared to the large blue downtrend histogram a quick upmove can bring you more points than a slow downtrending market, where you get stopped out, so trading if there is void is always the more succesful method.