I am now day trading the YM as well as trading off of daily charts. The following are the simple rules I am following based on my chart indications. The "turns" I refer to are the turns of the moving average in the middle of the chart that are indicated with red marks on the tops and blue marks on the bottom. Rules: 1. What is the trend of the market if any after open? 2. Wait for the 3rd turn of the day, excluding the one created at the close of yesterday. 3. Only take it if the market is trending. 4. If it is not trending wait for a clear signal 5. The only exit out of this is a valid and clear trend pattern in the opposite direction. (double tops with higher second humps donât count) Stops - 3 ticks below the low of the entry bar Exits â 1 contract at T1 move stop to BE+1 2nd contract at T2 or let it go as long as the market is trending moving stops to the bottoms of lows.
ok so I didn't quite follow my plan but I was pretty close. Long @ 8:41 12824 2 contracts Close @ 9:16 12833 2 contracts +11 I wasn't crazy about this trade because the market had already made 2 good pushes up. The entry required a stop to be placed at a point higher than I thought the market would go. Anyway the market got tired at about 9:15 so I bailed before the turn of the MA at 9:18. It was a valid exit at 9:18 since it was a lower high on the moving average. If I had held it it never would have hit T1 and I would have been out at the same spot +6. Short @ 9:16 12824 2 contracts Close @ 9:36 12835 2 contracts -11 This trade didn't work out even though it was "legal" and I played it right. There was another short at about 10:39 that worked out well and hit T1, but had had to get back to bed and catch some sleep. I need to think about my T1 targets as it relates to my entry and perhaps waiting to jump into the reverse until it makes a good move down. any suggestions on those would be welcome. Although on reflection it wasn't a bad day and might not need any changes.
I was looking at the trades from yesterday and I found a mistake I made. On the trade at 9:18 that failed, I should have been out and long at the flip of the MA. I am not sure when I missed that and let it go against me to a stop out.