Tight Range Day but Blocks show their hand

Repeat of yesterday's consolidation...

Yesterdays 15 Minute Close = UP bar 1268.50

Today's Open = Gaped up 16 points to 1284.50

Result = fairly tight consolidated range for most of the day (9 point range), with slight saucer and strength showing at the close.

15 minute chart shows tight range and 15 minute BLOCK on Hammer with No supply to follow then markup:

What Did I do Well? 

• Technically i started very poor but stayed poised and re focused, After another rough start i was able to re align myself,  be patient and execute good trades. 

• Was able to clearly redefine exactly what I'm looking for to trigger an entry. After this  I was on track for the day, Nailing a few Block setups. See notes on redefined entries.
• Due to the tight range i made some adjustments to my target and looked to close profits quicker. 
• Got Great Entries after redefining my trigger rules. **See Fading Block Trades on the 4500**  

What Did I do Poorly? 

• OverTrading is Financial SUICIDE!! I took too many unclear trades to start the day. Usually breaking the sequence of spotting setups by cutting to the lower without noting the 4500 tick and 15 minutes charts.
• Rough starts losing in first 15-20 is a sign of inpatients and too eager to trade. Do I feel the need to trade for the sake of trading?? If so then this business may not be for me..
• Taking trades against the trend. THIS IS A PROBLEM for me. I think it has to do with me looking for a quick trade, because counter trend moves seem to setup fast and more frequent. 
• Balk entries are the worst!! I had a stretch were i balked (entered and exited in the same area) like 4 times in both directions.  balks are the result of a slowing market and indescision on my part. This shows that im not sure why I entered!!

How Was My Mind Chatter? 

Mentally i was pretty sound but i did notice a few times thinking about a previous trade. Once recognized I was able to Re-Focus.

How will this affect my Progress?

• Quality thinking will allow you to see what you need to do to get on track, correct problems and properly analyse the market, this progress is more inportant than P/L and techs.
• Clearly Defined Trigger rules will keep you out of the market until quality opportunities show themselves.
• Rushing the open is worst way to start. This will get you playing from behind and can lead to spirals and major drawdowns.
• YOU WONT CATCH EVERY MOVE. your dont need to take every trade, you are looking only for high probability setups.
• Trading aginst the TREND will ruin all the good signals cause drawdowns and hurt your confidence.
• Balk Entries will make for a losing business, the cost more than its worth, when you balk you lose commissions, invisible .25pt and taxes. This will drawdown your account VERY fast will very little to show.

Solutions: 

• OVERTRADING for me is caused by focusing on Lower framed charts and BREAKING my rules of top down sequencing starting with setups that show on the 4500 tick.
• Prior to placing my first trade of the day, Allow the market to get into a trend or tell me what I will do, NO patients on the open kills my alloted trades for the day with nothing to show.
• If Trend is unclear, STAY CLEAR of the markets, DONT try to hope the trend into your direction, this is one of the worst battles to fight!! whenever i trade against the trend even if all signals line up i lose!!
• When analysing the market the TREND It should always be the 1st thing to note on as many time frames as possible. Note the most recent trend and ask, Is there Strength or Weakness in the background helps alote. Include $TICK moving average and price cycle trends. Specify EXACTLY what i want to see prior to entering.

• Balk Entries can be easily avoided by simple determining the Trend and staying with the postion until it plays out. Also balks are the result of a slowing market  so look to stay on the side if things slow to a crawl. And know exactly why I entered!! recording trades will help this.

Intangible Jewels:

Fading Block Trades on the 4500 tick (50/10) proved to be a great trigger all day. Using the Block Bars close as a point to fade with confirmation on $TICK and 1500/500 tick was very solid. I noticed that they will allow to drift away prior to returning and marking the move up or down.

Block setups (Purple bars) on the 4500.**Notice the bar close, once its cracked in the opposing direction it runs. Must be confirmed on TICK and lowers.

Block setup on the 1500. **Notice how the next bar drift into a doji, upthrust etc before selling off.**

Redefined Entry Rules

What I Need to see prior to entry:

DEFINE TREND

• 4500 Trend defined, use Cycles, Trend Lines, channels. For Reversals look for Exhaustion or Flush Signal  as well.
• 13,500 Trend Defined
• 15 minute Trend defined, Use cycles Trend Lines, Channels.
• 1 minute chart & $TICK trend defined (use price cycles and moving ave for $TICK,  Is Moving Average above/below 0 Line)
• 2 minute chart and $TICK trend defined (use price cycles and moving ave for $TICK, Is Moving Average above/below 0 Line)

DEFINE STRENGTH  OR WEAKNESS in immediate Back ground

• Look for Saucer shapes or Mushroom tops on the 4500 tick
• Look for Saucers shapes or Mushrooms tops on the 1500 tick
• Look for Saucer shapes or Mushrooms tops on the 2 minute

Once I know the the Trend and where S/W is coming from then i need to see.

HIGH VOLUME, BLOCK BOYS OR ULTRA LOW VOLUME Bars in areas of Strength or Weakness. This means Trend lines, Cycle Support/Resistance Gap Supports/ Resistance and Daily High/Low areas.

Finally i MUST SEE!!

PRICE CYCLE CONFLUENCE between the following, the SEQUNCE IS AS FOLLOWS:

4500 price cycles for Trend direction and reversals - Note the Activity of Pro/Am at 4500 price cycles and trends.

500 tick price cycle - cut here for confirmation with 4500
2 minute $TICK price cycle - cut here for confirmation with 4500
1 minute $TICK price cycle - cut here for confirmation with 4500

The above is MANDATORY prior to entry! If any of the above IS NOT in line DON'T TRADE IT. or you will lose all of your money and be a failure!!!!

**Many times you will see the 1500, 1 minute $TICK & 1 minute charts along with 500 tick, 2minute chart and 2 minute $TICK with Divergence/Exhaustion/Flush signal all Aligned with the above for the strongest signal possible.

BUT if the TREND is wrong the trade will likely fail!!.**

See the article "What my best trades have in common"
also see. "Tick Uses and the Trend"