Monday, June 3, 2013

+5pt Gap + Rally to 1st TI + Blocks at HT Peak = Hard selloff midday

Today we had a -5pt Gap Up with an early rally in to the 1st on prior to the News release, we then printed a 15 minute Block bar into the highs and sold off consistently down to test the 1621 area, On the daily It would appear that we could be turning bearish, also with price gapping up on the open and closing on the day. When we see this consistently then the short side could be the general bias.
Recap Notes:
Trade Selection -  Not Good Trading, Good Entries, Poor Exits.
Sequence 1 I started the day of rough but was able to recoup early, but ultimately over traded my way back into a hole. I did a poor job managing the day which has been my key to accuracy. So im licking wounds today. I will add that when price is moving with NO Block bars or few professional bars then we know price is being manipulated and is a sign of caution. see adjustments below

ADJUSTMENTS & OBSERVATIONS:

Work on correcting the following - 

  1. Taking the highest probability sequences, stick to what you know. 
  2. Trust your block bars when they appear.
  3. Give the sequence time to play out, if its clean in your favor 15 bars are a good timing point. 
  4. NEVER TRADE AGAINST 15minute Block Bars. 
  5. Protect your profits, Don't go entering *UQ* sequences.
  6. If the day starts off rough, be patient and think about stalling at a reasonable gain or loss. Don't try to push it when things are going bad. Get lighter on losing streaks and bigger on win streaks.
  7. Keep the size down for now until i can get my win % back up my normal range.

Managing the Day - I have been violating a simple understanding - More Than 3-4 Sequences Per Day is Too Much!! Stay within the 90 Grind and call it unless their is an obvious breakout.