A Professional Approach to Trading Futures

[PA3142]

Hi Steve
Interesting to start (properly) reading your thread and your analysis. Always interested in seeing that 10 traders look at the same asset and there are 11 opinions 🙂

On the MES i had 2 strikes (1 small loss and 1 win)

Going to try and download your thread as a file and read on paper (still old school on reading)

Thanks

 

[steven46]

Hello

I hope you are able to find something useful in my posts
Let me know of any questions and I will try to help (if possible)

Good Luck

 

[steven46]

Good Morning London & Euro Traders
It is about 11am in The City

Weekly Prep Part 1 Recap of the Front Half of the Week

This is our Recap of the Weekly Price action
It is divided into a "Front Half" and a "Back Half"
Professionals organize these weekly charts so that they present
an opportunity to identify re-occurring patterns, and once
this becomes apparent and identifiable, they can anticipate
and trade successive days with confidence.

From this chart we also evaluate price action, for example in the chart
below you may notice that price is moved down strongly, to a point
where buyers (buy volume) comes in. This is standard in the industry
and is to be expected. The old descriptors are "Pump & Dump" or
(conversely) "Dump & Pump"

There is a lot to learn here, if one were to take the time to investigate
they would at some point see that there is a structure and a logic that goes with
that structure. Traders who learn this, have an edge that is durable because it is
based on behavior, rather than popularized indicators or Internet gurus.
Our analysis is taken from an approach called "Adaptive Markets Hypothesis"

We attach the chart below (Part 1 of 2)

Now we will see if anyone sees the potential

Good luck

 

[steven46]

And for this chart we add Volume Profiles for each day

Readers should now see a pattern that is consistent
with "Trading Range" behavior, and the size of the range
is significant. Institutions like this type of behavior because
they can make money on the buy side AND the sell side

If there is interest we can discuss further, otherwise we will
assume this is well known

Good luck

 

[steven46]

Good Morning London & Euro Traders
It is 10:26 in The City

This is part 2 of our Weekly Preparation
Process. We divide the week into 2 parts
Monday to Wednesday, and Wednesday to Friday
Monday's range creates an "Initial Balance" and a Template
that an be used throughout the week

On this chart we add Anchored VWAP. Using this tool, and with
benefit of simple analysis, we look for evidence of repetitive behavior
(Trending or Trading Range, Tests of Previous levels of Support & Resistance
and Important Price Levels). Our goal is to identify prices where buyers
or sellers react, or are forced to react (because they are trapped).

Conclusion

From our analysis to date, we know that institutions have moved the markets
lower, and then, trapped them at specific prices, to force them to "give up"
and reverse, creating a continuation of the trend higher. The trend however is
getting to be "overbought" and we think that in the near future it will pullback
and even reverse if economic conditions in the US and Euro countries deteriorate.

The final step is creation of a trading plan. We have covered this step in
previous posts

Good Luck