Hidey Ho Traders,
Been a bit since publishing a video but thought it was time to show some of the specific setups I use every day in my trading. Keep in mind these are some of what I use and you have to use what clicks for you... Got a little wordy but I think there is good info to be had so no apologies. Had a choppy, junky action today but if you were nimble and just follow the signals there was plenty to be had even if you are not "Johnny on the spot." Summary is; know your plan, memorize it until you see it in your sleep, practice, practice, practice and apply it over and over... Just do it already!
Hope you all had a great trading day! A few dandy setups late into the move today for a few points and then called it a day. After the big gap on Monday, expected a couple of "pause" days with some sideways chop. This is one thing that can make or break a trader, how to stay away from that slop that seems to reverse right after you get in. This also can lead to over-trading which used to be one of my trading sins. Not so much anymore, have more confidence in my setups so I can sit and wait for the right time and place (most of the time!). It also is important to keep the market context in mind because a setup today is not the same as a setup tomorrow even if they look identical in a close-up view. The context can change the types of setups that will have a higher probability of a trade, whether it could be a big runner or whether you should be happy with a scalp for a couple of points. Ahhh, the devil is in the details, isn't it?
In this video I walk through my thoughts over the last three days and what I saw while trading those. The setups repeat and repeat, just have to be sure to keep the market context in mind as well. Okay, I'll quit blabbering and let you get to the video... Oh Yeah, don't forget that your mother always told you "Don't Forget to Share." Maybe she didn't mean it with reference to a web site link all those years ago, but... or did she?
Waited and waited today and the market about wore me out. It's important to not let fatigue pressure you into a trade (voice of experience here). Wait for that setup and then wait for the profits. Finally had a clean reversal setup, actually the only trade I took today, show up and had the patience to wait it out. Was happy with the nice profits after getting worn out by the slow market but hind site is always 20/20 and my stretch target of 6 would have been hit easy if I didn't call it a day. Well, emotionally I was done after the molasses move and am glad it was over...
Anyway, attached is the video of my trade for your review. This is one of the dandy MTF reversal entries that are really high probability at least for a couple of points fairly quickly, sometimes a LOT more since I'm hitting an absolute extreme... Notice I'm not flipping between charts trying to mentally piece things together and also note the nice alerts popping up that keep me awake. Now there's the power of the MTF indicators and the Combo-View. Boo-Ya!
Hope it is useful to you.
Quick video reviewing the day and its setups an a couple of trades I took this morning. Always seem to want to fight the trend even though the trend has switched right in front of me. Sometimes it is hard to get out of your own head and trade what you see, not what you think, right? Had some issue processing the video so sorry if something is grainy or something. Always somethin'... Anyway, hope this is useful to you.
Quick overview on the trade setups today with the upcoming MTF combo chart and below an update on the new MTF indicators. So the day opened in a downtrend with only shorts warranted. Reversals could be attempted but as many have heard me say before they are tough to hit and riskier. If we have higher probability setups with the trend I'd rather focus on those instead. So starting off EEdge-Trend gives us the entry points in time after EEdge-TrendDirection signals the direction. The Longer term structure levels aren't really a requirement to the setups but offer confirmation and extra confidence. It isn't a coincidence that the structure levels show up at the turns which are entry and exit points. The alerts are configured in such a way that the Trend Levels and Trend Direction pop up on the screen and indicate from which time frame so no dang flipping around to see what is happening. Remember that a trend that ends and "reverses" in the small time frame could just be a pullback in the larger time frame. I find since I'm not flipping around I'm much calmer sipping my coffee waiting for the setup to appear and the entry to pop-up. This MTF view is freaking me out it is so nice. Clicking around from chart to chart, window to window and trying to remember what I just saw in those screens and worried I'm missing something in a closed window are now gone. This reminds me of that damn game where you flip over a card with a symbol on it, then another trying to match it. The next turn you try to remember where you saw that stupid symbol for a match. Not the most efficient thing while trying to make a profit! I'll be going through a lot less mice with the reduced clicking and won't miss it...
As far as an update on the new release, currently I'm working on the documentation for releasing the new configuration which is time consuming but progressing. Once I get everything done I'll do an announcement and initially I'm planning on offering a decent discount on the MTF indicators to those who already have the EEdge Indicators so watch your emails for that. Just one way I can show that I appreciate your confidence in the EEdge strategy and your support through the years. If you don't yet have the indicators but have been considering it, now's the time... The EEdge Indicators are still an integral part of of the overall system and the original indicators without the MTF (Multi-Time Frame) setup can still be used with no problems so no worries if you don't want to upgrade. Before the MTF release I will be sending out an update to current owners with some code updates to the original indicators that get them ready to accept the new sender/receivers. A few other improvements will be implemented in this release such as updated alerts and configuration for the integration. Also, I'm planning on outlining what setups, entries and exits look like on the new chart because it is different to look at, but in my opinion this is the biggest improvement since I originally created the EEdge Indicators years ago. Amazing how a new perspective on the same thing can shake up your psyche. Damn. Other than that simply chipping away on the updates after my trading is done for the day... You might see some updates to the EminiEdge site along the way as I start to update things so if you see things moving around you'll know why. :)
One last thing, this MTF chart view is intended for the multiple tick chart setup that I normally use (4K, 1.5K and 560 tick charts on on ES) so if you use minute charts you won't need the new configuration (other symbols and time frames will still work as well). Tradestation allows multiple symbols on the same chart with minute bars but not with ticks so this addresses that deficiency. I can't imagine going back to minute charts anymore but if it works for you great! Thinking about having a few beta testers since this is such a big update so if you're interested in that let me know. I've had a few questions asking how to find out if the logic will work on users system before purchased so I created a little test program that should help verify proper operation prior to purchasing the MTF system. The free code and test indicators are available here... I might hold off on any posts for a while to focus on the work at hand so if you have questions in the mean time just let me know.
Had one of the type of days I hate to trade; opens up 20+ points already exhausted so longs are "chasing" and it is so strong that jumping in front of the moving train for a "reversal" is trading suicide. So the best thing I can do is first, tell myself "Do not chase, do not chase, do not chase..." Sit on my hands and wait for that one dainty pullback an hour or two into the day and hope like hell it doesn't reverse the second I hit the bid. In this case it worked out and waiting for the low time frame pullback in a larger time frame up move where the lowest risk entries are possible. Trump is making "BTFD" a way of life and the trades are more frequent than ever as evidenced by one of the recent posts "Buying it high and Selling it Higher" ... Misspoke a smidge and talked about 2886, sorry I meant to say 2386. Don't know what I'm saying sometimes until it's played back. Where'd that come from? Hell, I don't know...
Anyway, bagged out of the move WAY too early as usual and as followers know one of my biggest areas for improvement is to stretch the winners more. Gotta work on that! The moral of the story for today is one of keeping things in context. Get in the groove of the different time frames and be patient for your setup. Big trends are made of pulsations on the way up and on the way back down. Find the pulsations on the way down in a smaller time frame and you'll likely find a "downtrend", yes I said downtrend, in a smaller time frame. When that trend starts to end, this will likely be the pullback on the higher time frame. That's the sweet spot! A mentor once gave me a great bit of advice when I found myself over trading because I could talk myself into nearly anything looking like some type of trade setup. He said "wait for the trade to jump out and grab you. Until it does, let it go." That was more profound than I gave it credit for at the time. If I had to rationalize the trade in detail making a case for it, it probably wasn't strong and should be passed on. If I became overwhelmed with a possible entry and was looking for a reason this "wasn't" a setup, there were most likely ample reasons to hit the entry button. The single entry today was like that, in a sea of uptrend trend lines and new highs by the minute, a meek little low time frame support pops up and says "Hi There!" First sign of support after 1 hour and 10 minutes, just get on it and sit on it...
Hope this is useful to you, and if so I always appreciate the share! Got those dandy buttons down the side for your convenience but don't feel limited by those, go nuts...
Ahn nyeong ha se yo Traders,
Lots to see in the Emini charts and it's all in how you look at it. FOMC today offered up a couple of smaller trades today then falling to sleep as expected. Be sure to keep your powder dry on FOMC days as it is easy to get chopped up after 9:30 AM (Chicago). Looking at a Tick combo view which is kind of a pain with Tick charts, sometimes I wish I stayed with the minute charts. :) Watching for the EEdgeTrend S/R along with the structure S/R, then figuring in the EEdgeVolume exhaustions on the multiple time frames helped to outline the action and jump on a few trades. It will take a while to get used to the single view and if there is any interest maybe I'll release it to the public...
Hope you had a great days trading!
The market continues to float up on soft volume and making the days loooong and boring. Seems not that long ago that 20+ points were the norm before lunch time. When the market is soft like this watch the pros and take your profits decisively from EEdgeTrend Level to level. Better to have a few small profits than waiting for "the big one" that never materializes. I think we're one executive action away from a selloff, if for no other reason to have the pundits giggle and say "I told you so." When that happens don't be fooled, that's when the professional traders like you will get interested...
Hope you all had a good trading week...
Closing a great week of trading opportunities trading the Emini market. Had lots of opportunities and volatility for many types of trading plans. Still trading the market "Trump Effect" with higher highs with multiple CEOs contending to move more and more big businesses to (or back to) the US. Good for them and good for us.
As I researched a bit what effect Trump is expected to have on the market (for obvious reasons) I was stunned to see the amount of stories preaching doom and gloom, chaos in the streets, fires burning, dogs and cats mauling each other in the streets and fire and brimstone down from the heavens. It dawned on me that at least in my lifetime and probably in generations there has not been a president like him and this uncertainty, or more accurately the medias revulsion over not only Trumps's stated beliefs, but the outward and utter disgust for those Americans that could have possibly voted for someone that is admittedly pro-American, pro-business and anti-establishment. "How vulgar must you be to support someone of this caliber?" they must think. Well, from a business perspective, and yes trading is a business, wanting to put Americans to work with the nod to citizens doesn't seem so bad. And why shouldn't businesses do better? When you sign the front of the paycheck rather than the back it gives you a unique perspective. When there are more profits available there are more raises for your employees, more donations to your favorite charities, more investment back into the company so it can stay competitive and should I whisper when I say maybe even grow bigger? What the hell. I think we've been under liberal rule for so long that this is supposed to be our new normal and how dare us expect capitalism to thrive and for us as a people to do better if we work harder. That's just "old and antiquated" thinking, isn't it? Well, I think that's what we're supposed to believe. I'm not buying it. After all, Trump was never going to make it even into the primaries. A public joke blatantly played on the American people or even the world we were told. Then to win the republican primary which was simply a waste of time since Jeb Bush was the golden boy, out raising, out spending and intellectually out performing the group of dullards who had the audacity to even stand next to him on stage. Then there was the election itself with the chuckling commentators smiling and giggling with glee and I think one even wet themselves on-air while salivating over Hillary. She didn't even need to bother campaigning in many states as this was simply going through the motions for appearances sake. After all it was "her turn." There was a margin of at least 10% to her favor even at 9 PM on election eve. The rest is history and we're now 2 weeks into a Trump/Pence presidency. The first two weeks were a blur politically with the same commentators wetting themselves albeit for different reasons. Hmmm. Anyone remember Brexit?
Okay. You may be saying by now, "what the hell are you talking about?" You started talking about the market and the "Trump Effect" and you went on some tangent about the election. I guess you're right but my bigger point is this: Trading is a business where you grow your talent by working hard. You can be rewarded for this with more profits to do with what you want. They're your profits, right? Well, the prevailing thought in the media is not so fast. You need to give your profits to the trader who went out to party the night before, had a hangover and blew out his account the next day before noon. Doesn't that sound more fair to you? Everyone should benefit, not just you and if you suggest anything different you should be shunned and discredited. After all, you will certainly hurt their feelings if you have more profits than they do. I know, sounds stupid to me too. So here's my final point. Do your own research. Do your own due diligence. If you read reports from some talking head that says the economy is going to crash because of their moral imperative, or the converse, the market will explode, buy it and walk away... stop, think, and trade what you see, not what you think. It is up to you to improve yourself for the sake of you and your family. Work hard and be more profitable and don't be ashamed. Own your trading and the results you earn, good or bad. Don't be so shallow that you will discount everything someone says because you don't like the way it is said. Be an open minded professional that is willing to listen and make your own decision. After all it's the results that matter. Mrs. EminiEdge always reminds me (and rightfully so) that even when I complain about time that I "wasted" when reading and researching something and not coming out with a life changing epiphany that there is always something to be learned even if it was not what you were looking for or expected. Always that damned silver lining there if you look for it.
So when you hear or see something, don't be bullied into changing your opinion. If you don't agree that's okay, just don't feel the need to demean and destroy someone who doesn't share your view or say it in the way you think it should be said. This is a sign of great personal insecurity. Do not attempt to elevate yourself or your cause by verbally trying to demean someone else. This is petty and beneath you. Instead, learn from it and move on. How boring would it be if we we're all identical anyway? Ewwww.
You are a professional trader. Let everyone be envious because you are cool and calm while you take your profits or losses and are secure in your own beliefs even if you are alone with them. Have fun and don't believe everything you hear. Be the deviant that dares to think objectively and different from the crowd. Who knows, you could just be president someday. Oh yeah, and did I say "Trade what you see not what you think?" No? well, it was implied.
Finally have a decent internet connection in a far away land, and making hay while the sun shines (literally). In the down time getting caught up with some indicator updates with new functionality and some additional precision. I'm continuing to peck away at some really good questions and doing the best I can so be patient. Should have contacted everyone who is a EminiEdger (affectionately) to pick up the latest version of the EEdge Indicators so if you didn't get notified let me know and I'll follow up. I already saw something I'm going to upgrade... never ending updates apparently! :)
The market finally blasted up to new highs last week and got all confused, evidenced by the low range days and volume that rivals a holiday trade. Was looking for a gap-n-go trade today and that's exactly what we got, hope you all got a piece of it. As I've said in the past, when you get the trend moving overnight just "get on it and sit on it" hopefully after the first clear LRE. The real time trade attached here is not the trend trade of earlier but a later day counter trend trade long if you can believe it. Thought I'd show what is possible if you're looking at the market no matter what stage it is in. I don't like later day trades normally and like counter trend trades even less but with the time zone change and the "trading what I see, not what I think" mantra only makes sense to just do it! The EEdge Trend showed up the dandy counter direction setup (along with the EEdge Heatmap and EEdge Volume) for another quick 5 points/cnct. The larger picture 4K chart was still showing a big downtrend move though you could argue it made a bottom somewhere earlier in the morning. The LREs already started flipping which is the first sign in a change of direction so it was worth a shot.
Anyway hope it is useful to you. As always, appreciate the share as your vote of confidence.
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