I was shown a way to use a 55 EMA 10 SMA crossover that held a theory the price should come back to the 55 EMA when it stretches away from the 55 EMA .
It was too slow for defining trend so I cut the 55 in half . I definitely dont use the MA to enter , its just there for reference .
This template was set up by me to research divergences . So far its working OK but not as well as trading without the indicators .
1038 resistance and 1027 support . Next support 1016 . What I do see here is that the uptrendline that has held well for about 2 weeks is being violated at sundays open . I've attached the closer look at this trendline violation . What convinces me the bears are serious is that the 1st trendline break that closed below the trendline never traded below that candle . This break is different in that price is clearly trading below the second candle that closed below the uptrendline .
I wasnt going to trade today but decided I would try the PM session . I got 2 break evens , actually I netted $15 so I can have Mcdonalds tonite . What happened again today was a no fill on a nice continuation . 4 bars closed in 1 minute when price broke the resistance level at 1040.25 . I am considering applying a stop or stop limit order where I am anticipating an entry .
What was more encouraging was my indicator based method produced nicely , I was watching it but not trading . I always use a 12 ticks up or 12 ticks down and shut it down rule to keep me out of the days I am up and wind up losing or a downward spiral day wishing I left with ONLY a 12 tick loss . Using that rule , last week this method could have profited a total of 12 ES ticks on a 610 tick in 18 trades .That was the lowest timeframe that works well with it . Today it could have produced the 12 ticks up on the 1st 3 trades ( 4 tick target ) and done for the day at 1045 .
I got lazy with journalling . I vow to record what I'm doing due to the fact that I have a hard time getting sidetracked when I journal (focussing on what I already know hasnt worked for me in the past) if I journal my market activities .
On the NQ I see 1731,1706,1689 as resistance and areas to sell . I see 1650 as suppor and an area to buy . The daily is in an uptrend and showing a minor downtrend within .
I was ready to go short a close below 1689 but price rocketed past it and forget shorting . I got a short signal at 1306 and went short on a 2b that produced nicely . I exited the 1st contract at the 50 % level and held the 2nd contract to test the support at 1689 but closed it out shortly thereafter for a gain of 20.75 points .
Yesterday was OK , today not so much . I saw 1706 as resistance and an area to sell and got a signal to short , I reversed on the next bar ( it closed above the prior bars high ABOVE 1706 ) with a small loss on the short and price drifted like a liferaft 300 miles from shore . Result was -27 NQ points The details and plan are on the screenshot . No problem , there are plenty of days like today - I'll deal with them and learn .
