- Choppy day
1st Trade: Open Imbalance
1. TA
Structure
- Premarket we were uptrending making higher highs and higher lows then at the open we broke down immediately and made a new lower low. This was a little sketchy for a short in terms of structure but checkout what internals looked like
Internals
- We were selling down huge on ADD which was my main conviction for the trade itself. When I see ADD moving that strong its time to get in the trade.
2. Review
Idea: A+
- Really clean and easy trade here. Saw ADD break down with VOLD decreasing and I took a stab with basically a 2 point stop and a decent target. Once we found the bottome though I was out because open imbalance trades are never meant to be held for long periods of time. The entire purpose is to simply keep tight risk and scalp a fast move. If the market is heavily one sided though then perhaps sometimes I could be adding where I covered but this week we have Rate hike, cpi ppi so a downward trend is somewhat out of the question.
Execution: A+
- Super clean execution too, Waited for a lower low to be made from premarket and once it happened I got in at the next candle and then I covered about a half tick from theLOD. Very nice. Wish it was with 4 contracts and not only 1 though hahah. I can feel myself being too unhappy with only $25 anymore and its an exciting feeling but also a scary one because I will throw away those profits so fast becuase its "only $25." If I think like this all the time I will never make it as a trader.
Trade #2: Trend Continuation
1. TA
Structure
- Zoomed in. We have a downtrend but a fucked up choppy ugly downtrend. These wicks make it nearly impossible for clean entries or exits. I made a fatal flaw on this trade though.
Internals
- VOLD and ADD both moving higher while I was going short. This is a recipe for disaster already
2. Review
Idea: C
- Idea was eh. I think following structure first is great and going for the continuation of the downtrend instead of going for a reversal was definitely the right thing to do but the place where I failed was that I identified this trade very wrongly. I was thinking this was a move to move but if I thought that then I wouldve sold at LOD. I treated this trade as a trade to hold because I thought the best place to trap shorts would be if we broke PDC. I didnt think that this move would really go down masively, I just thought it would go down another 3 points or so. I shouldve just taken my profits. I wouldve been up about 8 points on the day which is more than I can ask for given the week we have ahead. I really fucked that up big time. Before I get into a trade I should first identify what kind of trade it is and that needs to be based off a few things.
1. Are we inside or outside of PDR? (previous day range)
- We were inside of PDR. This means that we should not have a breakout until it occurs first. Once breakout occurs then you can reassess scenario
2. Is there a lot of data coming out in next 2 sessions?
- Yes so only MTM is available. (sometimes when this is the case you can be a contrarian and hold something because it shouldnt work. Usually in trading when something shouldnt happen, that is why it happens)
3. How strong is the trend
- If trend is very strong that means scalping is out and MTM and TTH are the only styles you should be trading. Money is money at the EOD but when you enter you must know what style you are taking because in this example above I took a 2 point loss on a 4 point winner simply because I was greedy on the wrong day.
Execution: F
- Again terrible execution because of the reasons stated above.
Trade #3: Trend Reversal
1. TA
Structure
Internals
- Internals were definitely more bullish than bearish but the price action on ES was nasty as fuck. It broke trend then retested but it was so fucking choppy. just very difficult unless you have sniper entries or L2 reading god.
2. Review
Idea: B
- I had the right idea here going long for the reversal because we did the price action and we also had the internals moving to long side. ADD was super tricky today though it was moving down very strongly while the ES was doing the reversal. It was very very hard to trust while seeing ADD moving down like that.
Execution: D
- I could have had my stop at LOD and this wouldve been a great trade. I know that on reversals you have to keep stops at extremes like that because action is very choppy.
