Today's EOD analysis

After I had finished trading today, I reflected on the trades I had taken in  relation to the low volume/volatility seen today.  I thought that I had traded relatively well, but in hindsight, I really traded very badly.

Price was in a down trend all day since the London open, and coupled with low volume and low volatility, I should not have expected a reverse.  yet, the 3 trades I made were all counter to the daily trend.  I realise that the last trade was relatively successful, but I should have been looking for trend re-engagement trades whilst the volume remained low.

Having looked back on the charts, there were enough trend re-entries at good intra-day supply zones to have made this a good day, but I seem just to want to make reversal trades.  And I had already marked off the supply zones on my charts before price had retraced back to them. 

Maybe I am too much of a 'Mean Reversionist' to change.  I find it very difficult stopping myself taking counter trend trades.  And whilst I am taking counter trend trades, my mind is set against taking the trend trades. 

In an earlier post this month, I posted a link to another blog.  Where I read the most useful trading information I have ever seen.  The advice from 'Dr Joe' was - 'Buy when price is going up and sell when it is going down'.  The simplicity of this advice is to buy the dips in an uptrend and sell the rallies in a down trend.

I believe that my trading methodology should be able to achieve this, i.e sell at supply zones in a down trend and buy at demand zones in an up trend.  So from now, I will try very hard to not take reversal/counter trend trades until a new trend has been established.  I do not need to be the first person in a new trend.

I realise that this will be hard for me to do as I am a mean reversionist, but I am going to try very hard to accomplish this.  So I will use counter trend signals to exit trades rather than enter a trade.

Tomorrow is the Oil Inventories report day, and that should have an effect on volatility.  I believe the API report has already been publish and the data from it is very bearish for CL, so we may get more overnight down move.

Here are my EOD charts: