Thursday, October 10, 2013


I'd rather regret the things I've done than regret the things I haven't done.
Lucille Ball
Most people in trading always find themselves regretting not selling at the highs or buying at the lows.  Not because that is what they planned to do at that moment, since most don't have an trading plan to begin with, but because hindsight trading is always perfectly accurate.   I like to limit the amount of my regretful trades by being consistent in my rationale to enter and exit a trade.  If you are consistent and you are profitable then you have a proper trading system if its not profitable then maybe the trading system sucks.  Not been consistent is just gambling and guess work.

The SPX 30min PnF chart below taken from yesterdays closes highlights the area of 1685 and 1692.5.  Now I am not saying I knew the market was going to explode higher today and close at 1692 (which is also the 20dma).  However, knowing where these areas of support and resistance are in advance might help remove some of the guess work of where to buy and sell.

The following chart highlights the volume profile at support and resistance and as we expect volume increases at these key inflection points. We see how volume increased at support of (1653) which indicated demand was present based on yesterdays close.  We now rallied back to resistance and have enter a high volume area. The next day or two will dictate if the market will be challenging new highs once again.

Thanks for reading.

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