Friday, January 20, 2012

Down ($5) for the week.

Just one trade for the week which was basically a breakeven trade. I spent more time focusing on finding other ways to spot potential setups than I did trading. The market keeps bouncing off the S/R levels I draw, but does so without any type of price action I recognize as a setup. It's too choppy most of the time. So I set out to find another way of spotting those reversals.

One method that looks promising is to watch the bid and ask volume. When they diverge at my levels, it often times lead to a reversal. Today's trade was the first using this approach. I probably picked the wrong day to try this considering the low volume we had up until lunch. So far it's still a work in progress...

@ 11:14 ES trade ($5)

First trade using the Bid/Ask volume.

3 comments:

Gump said...

Michael, are you coming to any other conclusions from the action at your S&R levels?

Anonymous said...

why don't you just use price? Either wait for confirmation that your s/r level is working or just buy at your s/r level and let a stop take you out if you are wrong. The whole point of an s/r level is that there is a higher probability of a turn there.

Michael said...

Gump, You finally have a blogger account!

Anon,
Normally price is enough, that's how I prefer to trade,but the ES is fairly choppy, price alone doesn't tell the whole story. As far as just buying at those levels goes, that's a great way to destroy what's left of the account. I've never seen anyone do that and make money consistently.