July 23 Post Market Review and VIDEO

CLICK HERE FOR JULY 23 2009 VIDEO COMMENTARY AND ANALYSIS

Today was frustrating to me because I did not catch the move up. We had it as a premise on the morning prep.

I did not have an entry. The only way to get in would have been to take the break out trade. If you recall I took one yesterday that did not work.

That may seem random but I thought there was a difference in setups (there was not actually, I had a bit of a mis-read this morning). Yesterday there was significant constriction prior to the break out attempt.

I thought that it was missing today but if you look over the past few days there is a clear ascending triangle into the highs. For new readers, I do not trade solely based off patterns like that but when you combine them with S/R levels and premise for the day it makes for a powerful setup.

I missed it this morning. These things happen when you trade everyday. The important thing and what separates a trader who can survive from one who fails repeatedly is that I did not start fading the powerful move up out of frustration.

Nor did I start buying little micro pullbacks. It would have been a coin flip or worse getting long or short at any point between the breakout and the 974 highs. It is important to understand that in advance with forward looking projections. A moving average or MACD is not going to help in these situations either.

I probed the short side with a couple tightly managed scratches at my anticipated area of exhaustion then got a decent short setup the last 15 minutes of the day.

It took patience to leave today with a small winner but it is better then the alternative.

CLICK HERE FOR JULY 23 2009 VIDEO COMMENTARY AND ANALYSIS