Monday 25 November 2013

Today's CL trade

I did not get to my trading desk until 16:00 GMT (11:00 EST), so I missed the very good up move from a Demand zone that has been holding over the last week.  And there was a very good buy signal on the 2K volume chart at the open with a reverse RPM bar showing limit buy orders, with price rallying 100 ticks.

So by the time I was at my desk, price was in consolidation, and above the VWAP, so I was not interested in a short and was looking for a long.  I drew a DZ from where I saw a very impulsive breakout from limit buy orders (on both 2 min and 2K vol charts) and waited very patiently for price to retrace. All during this time, I kept repeating 'don't diddle in the middle', which is what Michelle (one of the OTA XLT instructors) used to say all the time.  This was to ensure that I did not take low probability trades, and just wait for the higher probability one.

When price reached the DZ, I saw a very good buy signal on the 30 sec chart with a reverse CBO DD bar and instead of taking an at market entry, I used a limit order and this was not triggered.  So I missed out on a very good entry.  After this, price just kept going up, and I thought I had missed my opportunity, but then, price began to stall before a RPM break (on the 700 vol chart), and I took the buy here, over 20 ticks from where I should have taken it.

However, I got my target of 31 ticks in the end.  But It could have been so much better. So not the best entry, but my patience paid off eventually.  Also, I have not looked on ES chart, so I am not distracted today.








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