I am reading price action level interactions and overall context quite clearly these days, more so than ever before I would say, but still missing a few key components of strategy it seems like. I came into this session “knowing” or having the right scenario in mind of what was likely to happen, but still ended up losing money on the session and after a review of Lak’s videos and notes I think I may have an answer.
E-mini S&P 500 Futures (@ES)
ES 60m above, 5m with levels below. What is so crazy is that these levels are levels I identified before the open and how price (other traders/volume/etc) interact so rationally with these price points in the same manner over and over each session. Price movement in the markets is level to level, a progression from S to R to S to R.
S/R over and over again:
Now how can one mess this up?
Going into the open I was looking for a 48 test to get short… I get long off of 43 support looking for 48 but it never comes… then I don’t flip to short once exiting the second long. It is that nimbleness, the ability to switch sides quickly and confidently that leads to great price action trading.
Another thing is having a bias… I’ve written about bias many times on this site, but this bias was a different sort of issue. In the past, I would have a bias that the market is going up or down, this bias was that a certain level would be tested that I could short against for a move lower on the open. Both biases are not good to have, but at least one is targeted and specific and makes sense in the contest of the price action instead of just a blind “I predict one way or the other”.
I guess I can say I am happy at least with how I closed the losing trades quickly seeing as how the level was being lost. I have to be able to reverse in those situations!
Here is one of Lak’s notes that really struck me after going over today’s session:
Every word of that is golden and applicable to what I doing. I want to highlight the following:
to be successful at trading you only need to do 4 things.
#1 Learn how to read a chart
#2 Learn Technical Analysis
#3 Don’t have a bias
#4 Trust yourself
I believe I have #1 and #2 down to a much better degree than I have #3 and #4 from Lak’s list there. #3 and #4 are the keys to executing right at levels and being able to reverse quickly once price breaks a level and holding trades and…. the list just goes on.
Going to work on these ideas more and try to apply them in the markets.
Day’s PnL: ($162.50)
I am going to make it all “click” here soon, I am working hard to make that happen.
Thank you for reading the review!
If you have any questions or comments about anything in this review, trading in general, or just want to say hi, please feel free to comment below. I look forward to hearing from you!