Saturday, May 30, 2009

May 29 Prep Overlay - A Bit Technical But Interesting



Good afternoon traders. I hope everybody is having a good weekend. I have posted an overlay of the morning prep I posted Friday morning with the actual price action that occurred on the ES. This is done by merging the .PNG files of the prep and a separate screenshot of the price action at the end of the day, then making the background of the gray end of day screenshot transparent. I know that is a mouth full but would like to explain for anybody who was wondering.

You can see the darker green is the original price action from the prep. It is that color because the original prep had black OHLC bars. When I place the green price action, which is historical and new bars created Friday, we get a clear picture of what price action was on the chart pre- market (black and green) and what unfolded throughout the day(Green only). You can still see the original zones and arrow projections from the pre-market prep chart. The price action that unfolded respected the zones and the stated premise we created pre-market.

I hope this demonstrates how I use my prep as a roadmap for my trading. I did not backtest any of this. It was all forward looking projections based on structure and volatility.

Please read the premise statement on the original prep if you have not already and compare my projection to my actual executions that I posted. It demonstrates a pre-market plan that prepared me to act decisively once I had corresponding structure, risk/reward, and entry timing pattern.

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