What short didn’t want to see the 1307 break and plunge to China?
The rug wasn’t pulled, but the fast one was and Shorts had to squirm out late day after the 1 pm lunch low held.
We felt the Boyz may try the two tics to one point lower low and bounce; instead they just held firm and pushed long side in rotational fashion and jammed it into the close.
The 4 pm algo spike was a clear demonstration of why we should be sidelined late Friday.
Why mess up a good day/week playing those games?
The mechanical nature of the market confuses those who look for complicated what-if scenarios to find an edge. Complicated spaghetti charts and a gazillion indicators still cannot make any more sense of the market than a few basic ideas.
One of my favorite traders I follow is Bama. He is smart, seasoned, and shares his ideas freely.
One such idea was this exchange we had:
Bama: @eminiwizard @ep_capital @smccl_stocks I want to make it clear that I’m a VolProfile trader through and through. $$
I agree with his premise: He uses what works for him.
@eminiwizard: so many different methods.. and key is finding one that works for us sp ranges more than trends, outside in works #EMWS/
@BamaTrader: @eminiwizard Couldn’t have said it better. SO important finding ‘your own way’. #EMWS
@BamaTrader: @eminiwizard Trying to ‘force’ a trading style/method away from your internal psyc nature, belief, ability = recipe for $$ disaster. #EMWS
I am too ignorant of Market Profile and it’s derivatives to intelligently comment on it’s usefulness, but I do believe it is a worthwhile study.
Let me just add this thought, a comment from one of our members, to show you a view by a market participant who is familiar now with both approaches (Emini wizard system and Market Profile.)
Janelle: @eminiwizard so grateful to have you as a mentor and friend, E – one of the best traders I’ve known #EMWS
[14:53] Janelle _: I think the incorporation of psychology into the system makes it so strong, I will ask again
[14:54] Angelika S: great discussion ty janelle and E
[15:14] struts _: E – very impressive today..you read the range perfectly today..were cautioning shorts at the break of IBL and called the fight for 15
Not bragging, just showing you what goes on behind the closed doors of our chat room. We weigh the evidence and continually read the tape and ever-changing market dynamics.
You make up your own mind whether we have a repeatable system or not.
Lest we forget, a major player like the General uses an entirely different approach, and is obviously quite successful commanding his legion of soldiers. Tunnel vision allows me to see a methodology similar (I believe), to one of his tools.
Pre market activity suggested hit the bounce for the gap fill trade, and the expected resistance zone near 18 held overnight.
Penetration to the south side needed the assistance of some news, and testing the prior day’s low allowed for any low on a break, but longer-term charts suggested that it would be harder than most shorts would recognize.
Late day trade forced the shorts to cover, and the last 15 minutes of trading showed why conservative traders were doing anything but trading.
We suggest trading when the odds are in our favor, and avoid the times when it is even more treacherous than normal.
Trading is hard work, with lots of discipline and common sense required.
Another trader I follow, Junior, introduced me to Anhony who is sharp as a whip. I recently signed up for his news letter, and he does an amazing job of describing his plan everyday. He shows charts, points of interest, and has a flexible mind that allows him to grasp profile and spaghetti charts.
He is not always right (who is?), but he is in the game and seems to read the tape very well.
If you haven’t seen his work, check it out.
Did I forget to mention that’s a freebie?