10 Point Short! 2 point stop!

3/27/2010

In todays post i want to look at the ES 10 min chart. This chart shows 3/23 to 3/25. On 3/23 you can see the indicator was low and we had blue bars this means get ready a big move is starting and since the symetry is up on the bigger time frames the odds are we are going to go up plus you can see the line of the indicator is green. From there the ES went up 7.00 points to close at the high. The night before we emailed our members that our upper target on the day was 1168 which the ES went above our target 2 points to close at the high of the day.

The following day the ES corrected the prior days move up and we had 2 short signals that produced 10 points of combined profits.

The next day the market gapped up and the bars stayed red all the way up then once the green bars turned to red that was the high of the day as we fell 15.00 points from the high to the close. That night we emailed our memebrs saying the 1168 was a shortable level with 1157.75 being our lower target of the day and the ES went 1 point lower on the day through our lower target.

The thing to note on fridays session is we had a 1168 short zone the night before then on friday the bars turned blue at out short level to start a big 10 point drop down and that was the trade of the day!

When we first built these indicators it was to visually tell us what NOT to do first and we can tell that in a matter of seconds meaning; if the bars are green DONT short. The indicators are there to confirm the pattern and to give us the entry. The key is to always confirm the pattern to the larger pattern and only trade in the bigger pattern or the "trend" direction. The patterns and indicators give us odds and we only want to trade high odd trade set up's and skip the low odd counter-trend "cant lose" trade set up's. Most people are trading counter-trend but they dont know they are trading counter-trend which is very dangerous.

It takes time to learn to trade with the trend while avoiding going long at the top of the trend. Everyone has heard the saying " if i only would have done the opposite i would have made money!" This is true in the fact that most people are trading counter-trend and it takes time to learn how to get into the trend trade.

The question when you are trading should not be "should i be long or should i be short" you should know the direction and the only question is " where do i enter the trade" and our methods and indicators answer that question for you in real-time.

Happy Trading,
http://www.eminischool.com/