June 9 2010 Overlay and Trades

I hit all of my execution boxes today and it paid off even though there were a couple tough unconfirmed fades that did not work out.

The grey visualization arrows were almost an exact match to the price action that unfolded.

It is interesting that my visualization called for inside support at 1063.50 which was a blind inside support zone identified in advance followed by an extension of 1069.50, however, my execution boxes had me covering and fading 1069.50.

My strategy has become 4 dimensional and I am working to specifically define it. I feel it but can not exactly put it into words yet. I am not sure if I want to. Over thinking what I am doing will cause problems.

The methodology I practice is always correct in the end but entering and exiting with the appropriate timing is an art form that requires extreme skill. For me, it requires a specific plan that allows for both consistency and discretion.

Balancing discretion and pattern consistency is like riding a unicycle on a beach ball.

The fade at 1069.50 is opposite my visualization and opposite what the price "looked" like it would do.

However, 1069.50 was a major line in the sand and extending a zone is a lower probability outcome. It becomes much more likely with inside support but a trader must pick a play.

I chose to fade which was a reversal execution at a confirmed extreme. The stop out was not costly but cutting the long was. Was it the cost of doing business?

It turns out I was right in premise. The price did extend 1069.50 but that move up was nothing but a giant slow pace washout of 1069.50 prior to the reversal.

I was able to reconcile everything by hitting the short sequence late in the day.

I have to have confidence in the fact that my execution boxes called for the best trades based off my ideas on how the price flows and lead to a plan that was able to be projected and executed today.

I must continue executing with aggression.