The gap today was almost identical to the one yesterday. After it was filled there was a breakout in the other direction.
The relative strength of the YM was added incentive to get long there. If the ES wasnt so weak we might have got a nice runup.
I took a trade on a flag on ym. I´ve seen these kind of strong moves, a flag and a new strong move a lot on dax, but that´s maybe not a good reason to trade it on ym This one turned out fine, but was it a good trade? I can´t really decide if I had good reasons to take it or not, comments on the morning action welcome...
I might clearify - I think the market is much more difficult to read when it takes off and doesn´t look back like it did this morning. Dax do it all the time, but es-ym doesn´t do it often. I don´t know, there´s nothing there to relate to on mornings like this, sort of. Do I make sense?
Sometimes you can think too much. Was a fine trade imo. It was more of a breakout than a pullback but I like those if they happen in the first few bars. All market stats were positive.
When you look at the market statistics to get a general feeling for direction, do you look at asia and europe, or just american markets? Are there any stocks or sectors that has a tendency to be leading indicators? Or do you just look at the indexes?
Sure. I check all the markets before the open. If theyre all green like this morning it makes it a bit easier to take an early long setup. I dont pay much attention to individual stocks or sectors but I probably should. The longer I trade it seems the less I look at. The 5 minute chart is about as much as I can handle.
Try this once. Down move Retrace back to average (enter short) Down move resumes ( collect profit) \ ..\ ....\/\ ........\