Today we had 3.5pt Gap Up into weakness across the higher time frames with Block bars in the midday high from prior day and Globex session. We have EOT signals on the 5m, 15, 135000 tick, 135m charts but no blocks to accompany the turns? Distribution has already begun.
Recap Notes:
Trade Selection - Good trading, OK initial Entry, OK Exits. Sequence 1 was a Liquid entry on open momentum based on Background weakness and 13,500/500 cycle that had long time implications, meaning i expected price to move in favor by the 1st Ti. Or i simply jump the gun due to the strong higher time frame signals. The trade moved to test the highs early before breaking on the 1st Ti, i was patient and trusted my premise and was able to take a solid gain on the move. Sequence 2 was a 15/5 cycle in trend again behind strong signs of distribution, I should have held this position longer as price moved more than 4pt in favor after taking about 1 pt out, some regrets here.
INTANGIBLE OBSERVATIONS:
Trade the Background to put Time on your side - Today i entered based on the background weakness and was able to wait the market out, however had i waited longer the larger the gain, as time progressed price declined further and further as Predicted by strong signs of weakness from the prior days Mid day Blocks and high time frame EOT signals.
Go with your first mind - I miss the opening move and cant find a solid setup then consider forfitting the day with NO trading. Today i considered just leaving as i had thoughts of doing poorly and i missed the most solid move that i foresaw but failed to react to.
Think PROBE Wholesale & retail when scalping - With this in mind i tend to NOT place too many lots at 1 price and thinking wholesale retail allows me to be more patient when looking for opportunities.
Keep lots to a minimum - Whenever i increase my lots beyond the minimal i get into BIG trouble. This is key to cutting loses along with thinking probe on scalps.
Be prepared for slow start on Late day News Releases - Today we had a 7:00am news release, this typically causes slow starts and choppy mornings, On these days it best to be VERY careful taking high probability opportunities and quick exits on light lots.
Read the sentiment of the Market and Understand the Background - Today i was able to read the sentiment of the market due to the background strength that appeared in the globex session and the Prior Days Close. This along with the open gap of less than 2pts pointed to a continuation of higher prices albeit in a tight range. This allowed me to remain confident even when cycles appeared to be turning against the position.