Yes. ES was a bit weird. I wonder whether it's b'cas of the quick run up after NFP and subsequent chop at value high between 1980 to 2010. I am trying to document the market context as well to optimise my execution. Many more months of execution and analysis ahead
Not to derail, but so did I. Did better in a micro forex account than I did in the spoos. Hard to account for changes in a plan. Particularly when it comes to emotional, but not as directional, trading. Emotional being the general state of the market, obviously not oneself, ideally.
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Likely NO trading today due to small range so far.
Volume is pretty low due to Holiday in some countries and ?Bonds closed for columbus day.
I am using today to learn more about Market Internals. That's the last piece of puzzle in my trading methodology, I think.
I also decided to pay for algovisor Order flow tool after getting a good discount. It's similar to Jigsaw, but I can visually differentiate big and small players now.
Quick summary of my Trading Methodology
Foundation - Auction Market Theory & Volume profile
Brick & Mortar - Volume study of Renko/Tick/Minute
Bells & Whistles - Algovisor, NYSE tick and Adv/Decline ratio.
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The charts may look complicated due to colour shades (and you may be put off) but my eyes are used to them and convey certain messages.
I can summarise it in few lines.
When Price moves up and down, I focus MOSTLY on the volume that drives that movement.
I look at volume from 3 different angles - Time based i.e 1 minute, Tick based i.e 1500k and Range based- 4 tick. The goal is to differentiate moves by bigger vs smaller players.
My recent additions are NYSE tick and Adv/Decline ratio to keep an eye on broader market state.
I DON'T MONITOR any other instruments like USD, Oil, Gold, Bond etc.
Some may think it's very myopic. I would like to think I'm VERY FOCUSED.
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If you must fiddle with both ends (entries & exits), still try to keep track of multiple targets for each --- to see which *exit* makes the most money. Fiddlin' with both ends can be time consuming at best -- and a fustercluck of confusion at worst.
One way to keep it simple is to take the exact same entry(s), but attempt to enter at (X) ticks better price. If any of these prove to be more profitable than your current entry -- Voila -- you've found a brand new entry to track -- without having to examine or factor-in any new or additional information.
The more factors one examines before entering a trade, the better chance they have to arrive at conflicting information -- which leads to indecisiveness, confusion, second-guessing and a lack of confidence in the trade. If there is any hesitation, for any reason, before entering a trade -- one is quite likely attempting to factor-in too much information. And this lack of confidence is also what leads people to bail-out of trades too early and override their own trading plan.
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