As drm7 pointed out, I agree that 1130 is a solid support area and also where the EMA is situated. I adjusted the stop higher to 1128, at the spike low created yesterday. This way I am securing a lot of profit and yet give the market enough wiggle room.
The stop is now at 1143.75 which is a new low created on the way higher. This means that I have secured myself over 50 ES points of profit and am currently sitting on unrealized gains of $4,550 with one trade and one contract. As a trend follower I am unable to predict where the market is headed to, but I do know that the trend is still bullish and will therefore stick to this trade for as long as the market allows me to. The merits of trend following should become more and more evident.
My charting setup is the final result of an evolution of trial and error and I firmly believe that I, or any newbie for that matter, can navigate the market most efficiently with it. Efficient with regards to return on the time spent in front of the screen. If you regard the choice of various time frames at hand, you have to filter out the ones that do not make any sense from an objective standpoint. The units that no one can argue about are (1) month (2) week (3) day (4) hour (5) minute (6) second. Everything in between is a multiple of the aforementioned and henceforth do not comply with the criteria of objectiveness. After all, trader A can look at the 5min whereas trader B prefers the 30min. It is evident that both can come to different conclusions at the very same instant. 1-3 are obviously helpful for the longer term orientation, but fail at presenting precise entry points. Price action in 5 and 6 is simply too short term and has too much of a random characteristic to be of any use. That leaves us with the one hour time frame that offers both the precision and the ignorance for deceiving wiggles. It nicely blends out the market swings that could get you into trouble by overtrading, caused by what is commonly referred to as "mixed signals" (to borrow this term from the dictionary of a clueless). One hour is simply one hour, nothing one could argue about. If you were seriously focusing on the trends that I am speaking about and trading with great success, the one hour time frame cannot be missed in anyone's setup.
The trend continues to stay intact and logically my long position since 10/4 is still in. Meanwhile I have adjusted the stop to 1179.75 because I observe a support basis there. A break would change the uptrend pattern of higher highs and higher lows and impair the current trend. So far not sign of it.
For everyone who wishes to learn trend following and those of you who requested live commentary on my trades, please be informed that I have registered an IRC channel on Othernet called #ES. Following ES trends will be the focus in the chat (my trading style is communicated in this thread). Feel free to drop by to discuss or to learn from each other. It is still very fresh, so it depends on a few regular visitors to make it lively! I will be there evening times in Europe.
ES has clearly found a new visible footing at 1185. As I am still in my long position since 1092, I regarded yesterday's sell-off merely as a retracement. There was no significant higher low broken or any hint that would have gotten me short, so the only option I was left with was to stick to my knits and patiently wait until a reversal pattern would emerge. As of this moment, it very much seems that it is turning around again and if I wasn't long already, entering now appears to be a low-risk proposition.
Short @ 1211.50, Stop @ 1226.25 I reversed my position just now at 1211.50, closing my previous long position for a proud profit of $5,975 (119.50 ES points). Going short was due to a break of the horizontal support line that formed during premarket and regular trading hours, drawn in the chart attached. A classic pattern I have been taking all the while. Total profit since beginning: $13,162.50
God... I've got to catch up , I'm short 2 @ about 1223. Hopefully we can start going somewhere now. I've been on a losing streak for a week now. I've got some background data saying we should get a nice little downtrend!
God... I've got to catch up , I'm short 2 @ about 1223. Hopefully we can start going somewhere now. I've been on a losing streak for a week now. I've got some background data saying we should get a nice little downtrend.
2% up, 2% down, 2% up, now 2% down. This is explosive stuff. Trade trends, adamm2. Don't scalp or go against it. With your 2 contracts you can easily beat me.