6/18/2010
This is a 3 minute TF chart of the last few days. The thing to look at is the blue bars. When the indicator is high that means the move is over and when the indicator is low that means the move is just starting.
Our outlook in the markets have been up since the TF completed the pattern at the 605 area. Last week the TF came within 3 points of our upper weekly target. The NQ went beyond our upper target. And the ES went above our upper target by 1 point!
All these targets were from June 9th and all our nightly videos are saved so anyone who joins our group can go back and look at all our outlooks , targets and WHY we have them and how we get them (this is key).
On this chart you can see that the blue bars the last few days nailed the low of the day and the high of the day. We also had some really nice long signals intra-day that were in the direction of our outlook (this is also very key). We always want to take trades in the bigger trend direction knowing we will get counter trend signals along the way but to ignore them OR if you are aggressive you can trade them but you must use the counter trend rules.
Once we get blue bars we trail the stop to the low of the prior blue bar on longs and the high of the prior blue bar on shorts. We let the market take us out of the trade so we cut down on real time emotions. There were 2 nice trades each for 6 points using our entry method and letting the market take us out of the trades. This is different than most people that count the whole move without a clear exit strategy. The blue bars is just one of our 3 stop methods, but when we get blue bars it over rides all other stop methods and you get out of the trade.
In looking at the chart would you stay long when the blue bars appear at the top of the chart? Would you stay short when they appear at the bottom of the chart?
Would you short our long signal?
The key to trading is having the bigger pattern then having a way to break that outlook down so we have the smallest risk for the most profit intra-day. The only way to build your confidence is to have real time odds on your side that is visual on your charts. Notice how the chart is clean without allot of conflicting indicators. Most indicators will do you more harm than good.
Trading is not only knowing what to do it is also knowing what NOT to do. If you can learn what to do first it makes it allot easier to learn what to do so you can repeat good habits and get rid of bad habits.
Happy Trading,
www.eMiniSchool.com
