Day Trading Blog: Trading Plan: Re-Using DP Areas, DP area on DOW and entry on 1 min chart on 3 min setup

Sunday, May 20, 2012

Trading Plan: Re-Using DP Areas, DP area on DOW and entry on 1 min chart on 3 min setup

The major DP resistance and support areas from prior session can be used for todays trading:

On Somedays there is a DP area that is on the YM or TF so always check all 4 US

emini markets for reversals, even if you are just trading the NQ or ES:

Often times there is a pullback so instead of risking 12 Points on a 3 Min FDAX long setup only 4-5 points are needed if you buy on the rising trendline:

In fact its possible to re-enter a trend above any blue bar on the 1 min chart if there was also a blue 3 min bar before:

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Trading Rules:

how to trade profitable? with KSE. knowledge, strategy, execution.
Knowledge: You need to buy low and sell high. So I wait for the price to first go to a prior support level on the daily, 4h, 1h chart.
Strategy: Timing is important so I trade when there is a good setup on the dax, s+p, nasdaq or oil market. My goal is to make few trades with high risk reward, that is archived by either holding a trade till the market closes or reaching a level that sets up a counter trade.
Execution: Usually there is only a 20 point risk involved, so I try to get into a prior support level on the 10 min chart and automatically set a stop and multiple take profit targets.
All the little details how to trade better are listed here but I like to keep it simple: just enter the market at prices with a target that it at least 3 times the initial risk.

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Trade at your own risk. The information provided here is for Education only and is of a general comment only and neither purports nor intends to be, specific trading advice. It has been prepared without regard to any particular person's investment objectives, financial situation and particular needs. Information should not be considered as an offer or enticement to buy, sell or trade. You should seek appropriate advice from your broker, or licensed investment advisor, before taking any action.

By reading this Blog, you acknowledge and accept that all trading decisions are your own sole responsibility, and I cannot be held responsible for any losses that are incurred as a result.

There is risk of loss in trading and investing. All trade decisions are your own sole responsibility.