Sequence Trade Logic
One Discovery. The Angel is born to test the Demon, and vice versa.
E invites you to compare your ability with his to “read the tape” in real time.
Premarket, E reviews his thoughts, and shares them with the Team. This frame of reference is the starting point for the day’s trading, and key zones are identified.
News trading is fast and emotional. Anticipation is the key to being able to React.
Half gap and gap trade done, 99 target hit.
MATD so hitting the bounce at aggressive resistance.
The scene of the crime is revisited.
The open. “Less than obvious is the Boyz aren’t going to just lay down and die today.” Carve something out of a two way day.
Shorts: Trailer territory, get paid.
Survive by being conservative. Boyz know how to trap us at previous lows. Risk reward is changing near 87.5. Zones constantly being defined.
E continually reminds traders of the Boyz ability to reverse the flow of the market. Subtle clues like tails on the 30 are noticed. “Above 2001 and the shorts are done.” Verniman likes to see pre market lows revisited. Don’t trust breakdowns today.
Breakdown as suggested by Zeek. Be careful of sticking your neck out and becoming a member of the turtle club. Ending Diagonals and 3 little Indians considered. Take a point under our current low and that is support until broken. Accept gifts. Expect to play wac a mole, and get our heads taken off by the Boyz. Probably a two way day.
Get paid on new lows. Still inside the 87.5 and 2001 stop. MATD (@millerdon) has worked. Don’t get carried away thinking plunge. Note divergence on the tics. Gotta cover something into the 88’s. I think 3 minute is a good chart. Boyz favorite trick is trap. Note the elegance of the one point support.
Turtle Club reminder.
Above 97 and low is probably in. Umbrella trades can turn into sharp bounces once they end. Note how the blue moving average is now 10 points lower than yesterday, and will be easier to step over. Last to leave the party loses in git ‘er done day. The goal of the Boyz is to get back to test that 2000. Gunshy now back above yesterday’s low, especially with tic divergence.
Conceptual theory is constantly stressed, with a focus on common sense. Can you analyze markets like E?
Would being a member of his trading room help you achieve your goals?
Learn to accept what the market will give you. Traders who missed yesterday are trying too hard today. Both sides have money.
The weekly contra. Last to leave loses. 99 High odds target. Squeeze pivot identified, shorts trapped. Charts in play. Short term trend is up in an undercut low and a squeeze. Evidence exists that a Big Boy is in the trade. Target 99. Sequence trading idea explained. Magnet 1997.75 Gap is closed. Low is in. Globex high will likely go, but get paid by 99. Never turn your back on the Boyz.
Program trade hits 2002. 4.75 is T1. Likely get one more short by EOD for profit taking by longs. Evidence by 2 min chart was correct we were in short term uptrend.
No man’s land. Encroachment on the profits of yesterday’s shorts. Review of lessons. NQ support 4050. No you don’t bar. Resistance zone 2006.
Sharp bounces can come out of umbrella trades. Where is the goal line likely to be for swing traders? Confluence of indicators. Step by step. Protect profits. Beach ball bounce.
Longs be conservative. Longs should want to take profits by EOD. (Totally wrong about this.) 99.75 new squeeze pivot. 06 potential resistance, the fix was in.
Stop run for a cushion. Megaphone pattern. Now risk reward comes in, and dual variables of squeeze vs profit taking. Risk two make two. E admits to not having all the answers. Team effort. Uppercuts. 98 aggressive support now. Agenda. Won’t plunge now. Potential for the 06+, but unlikely.
Neighborhood zones. Law of alternation. Squeeze pivot, no rotations. Diving board. No evidence of a big boy short. Psychology.
T1 4.75 achieved. Sidelines recommended. Shorts using six to eight as resistance. Three minute chart.
Back end resistance hit 5.75 to 6.25.
Just another day at the office. Another day for exploring who we are and where we are going.
Is it possible to know the ending, or should we be happy making educated guesses?
I think not, but thinking backwards may help, since 80% or so of traders lose.