Trading to win using the Secret Code of the Illuminati

In search of Angels
Range Trading

Range Trading

If my charts speak for themselves, my recent posts on twitter (eminiwizard) speak to my philosophy.

  • Be conservative, accumulate profits.
  • Expect head fakes
  • Know where expected support and resistance are
  • Late to the party and you miss all the fun
  • Use multiple charts: ticks, globex, rth to develop better intuition
  • Always locate the Angels and Demons as they are what separate the amateurs from the pros
  • Conservative traders should end by 3:30 or at least trade small and scalp, unless trailer is intact
  • Avoid lunch chop

Our bias today was to find support. I suggested that rising moving averages would make it difficult to plunge.

A market must stop rising before it can go down. We had upside targets in the 08 to 11.5 range, in case the market broke out. Why is that important? So we are prepared in advance. If we are stopped out on the short side, we can reverse or wait and play the profit taking move at the expected next level.

Downside we had 94, and 90.5 as important. We called off by 95 94 in the morning trade, and got lucky with that call.

ABCD target was 93.75, that’s why prudent are off and take profits.

What’s the point of trading and not taking your chips off the table?

Late day the fake breakdown caught a lot of people, even a few gurus. One trader called me after the market: he shorted 94.25! Have I ever done anything like that? Of course, haven’t we all? When your brain thaws out, then get out of trouble, go to the sideline, laugh at yourself.

Then resolve that you learned your lesson (again), and move on.

A double bottom can always come as a lower low in a “marginally” lower move. You just never know until after. Double bottoms/tops occur before breakouts and breakdowns.

The Demon was at 904 today, and never changed during RTH (regular trading hours).

The Angels were busy; they changed three times today.

We have a chat room available for your convenience. I don’t use it much; now and then I go there with a few traders and give a couple of lessons.

You are welcome to bring your friends and hang out.

Let me know if you are there and there is a crowd. I will come and give you one of my favorite trades for free. It will knock your socks off, and your trading will never be the same. Reminder: I am a humble student, not a guru. I can probably learn as much from you as you can from me.

Review all the charts I posted on twitter for a better feel for “sequence”.

Volatility has left the building; 11.5 points range today.

Do you have a favorite chart of today’s activity? If you care to share, fell free to post a link along with a comment.

In search of Angels

In search of Angels

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