July 27 2010 Overlay and Trades

I have had a few request this week talk about the differences between the ES and TF and why I have started trading the TF.

I will do a detailed post on this subject tomorrow.

Today's post will be mostly charts. I did not have any ES trades even though the read was solid. We had the 1106.75 inside support zone identified but I did not hit it.

I have been focusing on very high probability entries lately and that requires a retest pattern entry. I more courageous trade would have been to bid into inside support and trust the premise of a sideways contraction after yesterday's trend.

I had a decent TF day. It is interesting that I have been finding my best rhythm and feel by not hitting the initial AM move (which is usually the largest) but hitting the clear pattern entries once I am extremely confidence in bias after the pull back or congestion.

More on this tomorrow. I traded a cup and handle pattern today. You can find this in any tech analysis book. Cups are good long pattern entries and occur frequently. This was a good one and they rarely fail if traded with the correct premise.

I posted a couple charts highlighting the pattern. One is the hard right edge I took a snapshot of just after the entry.