Sep 142011

I thought it’d be interesting to take one of my real trades and see what you would have done had you been in the trade.  Just for fun.

Situation:  ES dropped down overnight during the Asian session.  The day before established higher value from the previous day.


This is a 1 minute chart.  You enter long on a pullback and you’re now in the trade.  What do you do?

I know I haven’t given all the information necessary so just take what I’ve given and tell me how you’d manage the trade based on the information given.  If you wouldn’t have taken it then you can say that too.

If you want to participate, post in the comments.  Later I’ll share what I did and what the market did.


  5 Responses to “Trade Analysis: What would you do?”

  1. Really not a lot of info – esepecailly no levels ( I do not trade the ES – therefore I don’t no the context here).
    But based on the chart and the being in a long trade I would set my SL 1-2 ticks beyond the last swing low which would coincide with your entry point (and I guess you have already took one scale). On the chart the price is consolidating and this could mean it is building energy for a further move up.


  2. A game, a game!

    Let’s see, I am long and the market tested down to my entry where it met an aggressive buying response (good for me). On the other hand, there seems to be persistent selling overhead and the whole rsulting pattern is looking like balance/coiling. Long story short, based on the info you gave, if I have not reached my target yet, I will likely stay long and likely move my stop somewhere below the recent test.


  3. I’d look to exit the long and go short there with a stop above that last bars high/the highs of the whole pattern, especially if this scenario is occurring under yesterday’s action.


  4. I don’t trade the European session. However, on the bullish side there’s an open drive up and I’m assuming the overnight/asian inventory is mostly short due to the gap down. I wouldn’t be surprised to see those shorts get spooked/neutralized. On the neutral/bearish side the market appears to be balancing immediately following the entry rather than taking off which is ideal particularly on an O/D. The high of the most recent bar looks like it’s strongly rejecting what I imagine to be the VAH of a profile chart that’s created from entry to present. What’s great is that the entry is around the imagined VAL of that area and if the market continues to build balance areas upward (yesterday established higher value) that’s great. If not, the trade is a small loser on a break below the swing low just prior to entry. My targets are typically 2 to 3 times risk so if the trade goes bad then no big deal.

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