This journal is to document my trades for a look back at improvement, refinement and development of my trade plan. I trade by following ABCD patterns and the natural movement of the markets. Recently I have incorporated market volume into my analysis to complement harmonics. Trading ES market, which I will be working with various trading signals on in the journal to cover both ranging and trending markets. In developing this plan, I am simulating a $25,000 account scaling up from MES to ES. If the plan development is successful, it will move to a live account with the same methodology.
ABCD Pattern Trade Entries and Management
D Pattern Completion
One to One, D point of ABCD pattern
Greater >127.2% extension
3rd Wave or greater along with weak projection
Volume profile of the swing to have a normal distribution
Confirmed with volume cluster analysis with evidence of the other side overcoming and moving price the other way. Analysis listed in post #46
Money Management: 4 contracts adjusted with money management spreadsheet
Trade Management:
2 contracts scaled out at 38.2% of AD leg (preferably with a minimum 2R)
1 contract scaled out at 61.8% of AD leg
1 contract for a runner with a trailing stop behind VWAP of the swing
Stop is not moved up until second target is reached.
C (corrective) Entry
2nd or 3rd Wave along with strong projection
Fibonacci retracement zone 38.2%-78.6%
Volume profile of the swing to have a P (long) or B (short) distribution, or double distribution profile
Confirmed with volume cluster analysis with evidence of the other side overcoming and moving price the other way. Analysis listed in post #46
See Post #128 for entry diagram
Money Management: 4 contracts adjusted with money management spreadsheet
Trade Management:
2 contracts scaled out at previous high / low (preferably with a minimum 2R)
1 contract scaled out at 127.2% extension or 1-1 completion
1 contract for a runner with a trailing stop behind VWAP of the swing
Stop is not moved up until second target is reached.
Trend Trade Entries and Management
CWAP / VWAP Trend Trade #1
Once a double bottom / top has been created, enter on correction (C point)
Enter just ahead of CWAP in or just in front of Volume zone
Stop placed behind VWAP of swing and must be behind volume zone for entry
3rd wave or greater
Decreasing / low projection
See Post #128 for entry diagram
CWAP / VWAP Trend Trade #2
Price has reached and bounced off of major support / resistance
3rd wave or greater has been completed approaching the support / resistance
Decreasing / low projection provides further confirmation
Entry at the C point after a deep correction >78.6% is made
Enter just ahead of CWAP in confluence with the high / low of 2nd wave
Stop placed behind VWAP of swing and below high
See Post #128 for entry diagram
CWAP / VWAP Trend Trade #3
Price has reached and bounced off of major support / resistance
3rd wave or greater has been completed approaching the support / resistance
Decreasing / low projection provides further confirmation
Entry at the C point after 2nd wave has completed and creates a new high / low
Enter just ahead of CWAP in or just in front of Volume zone
Stop placed behind VWAP of swing and must be behind volume zone for entry
See Post #128 for entry diagram
Money Management: 4 contracts adjusted with money management spreadsheet
Trade Management:
2 contracts scaled out at 2R
1 contract scaled out at 3R
1 contract for a runner with stop moved behind key volume transition zones for 5R
Stop is not moved up until second target is reached.
Range Trade Entries and Management
Double Top / Bottom Formation
On double top / bottom formation, enter at VWAP of the price range of the failed break higher / lower
Place stop 2 ticks beyond the value area of the volume profile
High Volume Zone Scalp
On support / resistance bounce, enter at +1 of the POC of the …
