Posts Tagged ‘long’
January 22nd, 2010 | 
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Long entry ($ES_F) before market opens
Market reversed right above yesterday’s Value Area Low.Target at VWAP (1141).
Text book LVN rejection on $ES_F
Composite Low Volume Node rejected at 1126.25 (antecipated in my early post http://gentletrader.com/2010/01/18/composite-volume-chart-for-es_f-january-18-2010/ ).
The following footprint chart shows the selling being flushed.
The 1000 volume chart refines the entry in the trade:
First trading day of 2010
Just 1 hour before the market opened, at about 8:30 ET, the ES started a little correction. Price was above VWAP, long term CCI (45 period) was indicating long positions, and Volume Breakdown was really diverging, making huge positive spikes on big volume. So I bought ES there. Sold with 1.75 points gain. Not necessary to say it was too early. Could wait a little more.
The market started to show strength and when it opened, all the breadth indicators confirmed this strength. Nice 10 point rally from the price I bought. Sadly I didn’t enjoined the whole “party”. Worse, I tried to fade the rally! Oh man! What a big mistake! Fade a strong market! $VOLD was so strong that I couldn’t see any red candle. $ADD rapidly jumped to almost 2000 more advancing issues than declining issues. Even though all the odds were for remain in my long position, I reverted it…
Summing up, nice entry in the beginning, out of the trade too early and then shorted for no reason. Final result: minus 7 ticks for the first day of the year.
Lesson learned: never try to fade a day like this one!
I’m also trying to find if OFA (Order Flow Analytics Software does really work. I will be publishing it here everyday until I figure out how to use it or until I get rid of it 
.
You can see bellow 2 pictures composing today’s trade day. Had to split it in order to fit in screen.
