So I tried a little experiment today (ES)

I was watching the 1011.75 area as a potential long, part of my normal way of thinking.. didn't take the trade because I am reconfiguring the way I trade and am just observing for a few days.

Anyway, I see that price moved down and thought:

"Had I been long at 1012.00, and price moved against me, and lost discipline and didn't exit, at what point would I have capitulated, and said screw it I'm getting out because this is just retarded at this point?"

Based on my previous trading I figured that area to be 1008.00.

So figuring I tend to capitulate at the worst possible moment I decided to go long at that point and it actually worked.

It was a psychological experiment of sorts. Trying to rewire my brain. Cool new system.


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Cool

 

you are on to something but you cannot really call that a system.. i will help you a little with this system of yours.. as everyone exits becasue they are taking all teh pain they can in losses that is when good faders step in and buy.. for short term trades.. this phenomena has been around in trading well since it started.. it usually happens during or right after a huge volume spike either on an up spike or a down spike.. you can see this pattern time and time again on charts.. any time frame. Good luck with your system

 

Brilliant.

Trying to rewire the brain for ES is a good idea.

What has helped me understand ES price movement?
I once asked myself: why is it so hard for beginning small retail traders who trade the setups they learned in books about technical analysis?
Why do perfect setups so often fail?

I imagined a big, old Pit Trader who likes to move thousands of lots. So this guy is not scared but totally confident.
He is trading against the guys who buy a bullish breakout. Now he has a lot of people giving him nice bids to hit...if he wants to go short anyway.

 

This definitely can lead you to a whole new way of seeing (and really profiting from) the ES. But...the road ahead is long and arduous. This is a glimpse of what is possible but honing that skill will take a ton of work (but well worth it!)

 

Wow, I recognized that spot in the chart immediately and my take on it was the opposite of yours. This is from my journal today:

 

Try inverting the chart.
I think you would see more clearly that there was no top at 1011.75