Mar 072012
 

I’ve been surprised by the number of people who have shown an interest in the eminiplayer zones.  Two of my trading buddies have subscribed to it.  I think this is great because it will give us something in common when analyzing our trades and sharing our ideas about how we saw it.  If you’re not a subscriber, he tweets his charts showing his zones towards the end of the US RTH session so you can study them to see if it’s something that can help you.

Monday I did well on ES but those gains were reduced by a loss on the Bund.  And so I decided to focus on ES & Stoxx.  In the past the Bund was correlated (inversely) with these markets and there was a real synergy.  Right now that’s not the case.

So I thought it’d be a good idea this week to show how I’m trading the EMP zones.  EMP did a webinar recently about this where he interviewed one of his subscribers and I realized how simple trading can be and how I’ve complicated the heck out of it!  So I’m trying to simplify as much as possible.  I do want to stress the fact that I don’t just blindly trade his zones, although I think that’s possible if you want to do that.  One reason I do my own homework is because I’m also studying Stoxx (and sometimes Bund & Euro).

Here’s the basic idea of what I do:

  1. I study the weekly chart.
  2. I study the ES daily chart with micro-composites
  3. I study a Market Profile chart where I split & merge profiles to isolate balance areas
  4. I study the “template day” profiles & S/R levels
  5. I combine all those to come up with my own areas of business.  I plot these on a chart.
  6. I then plot the EMP zones on a second chart and see how they relate to mine.  This is a great learning experience.  By doing my own homework I can better understand the EMP zones and that increase my confidence.  I can also understand if price stops short in front of a level or goes beyond it a little bit.
  7. I determine my bias for the day and where it will change.  I have my own method of doing this and I also use the EMP bull/bear line.  When these agree then that’s good.  When they’re conflicting I’m more careful because it’s not so clear.
  8. I decide where I’ll look to take my trades and put audio alerts there.
  9. When price gets there, I start watching the breath (NYSE TICK and S&P 500 Adv/Dec), footprint and “order flow” (I still dislike that term but volume seems static and order flow seems more dynamic and it’s important to see as dynamic).  I have tools to help me with this plan to make them publicly available in the future.  I also decide where I will be wrong.
  10. If I see a change in order flow to support my trade then I enter.  Sometimes I scale in depending on my confidence and the risk (if we’re at the front of an area I enter 1 contract and look to add a second towards the back of the area).  If price goes beyond my area I take a loss.  I take the first scale at the next level (could be mine or EMP’s or an important intraday level) which must be more than 2 pts away or I skip the trade.  And for the second I target the next level.

So knowing that, I thought I’d share my ES trades and you can share yours and ask questions.  I will plot my trades on a chart with the EMP zones so that we can use the EMP zones as a common basis.  If I have something that differs I’ll try to note that.

Monday March 5:

Tuesday March 6:

 

I hope that showing the trades and my interpretation of the zones will allow collaboration.  I welcome all questions and feedback.  If you’d like to post your charts & trades or ask a question please leave a comment below.

 

  3 Responses to “Trading the eminiplayer zones and Mon/Tues Review”

  1. Hello Michael today I have seen the signs that you posted, some of them shared, some not. Today was just the first day, a few days I will have more references. good initiative
    Hello and thanks
    sorry for my English is not perfect…. 🙂

  2. Just checking out your blog. Today was my 1st day of EMP subscription. The open didn’t give me warm fuzzies about direction and as you so noted, it was just building energy for a bigger move. However, once it broke to the upside, there was no real rotation down to get on the train. I foolishly shorted the 49-51 resistance zone, but now understand the folly of that trade. #1 – R Zones should be used as long targets, not necessarily zones to short. #2 – I should have waited for the MCLVN at 1352.25, if I wanted to a take a stab at the short. #3 – We had just rotated out of previous day range – silly to short that especially when the move up was with some velocity. Getting used to his zones, how to interpret his notes will take awhile. Hopefully he’ll do another open room to help expedite my learning curve. Thx for the interaction on twitter. Was this too much information? 🙂

  3. RPK – Your summary is pretty much the same as mine, which I’m going to post right now. I think this in-depth analysis is excellent and is what we must do every day to improve.

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