Jul 212012
 

I was discussing with a few other traders about EMP zones and one asked how my zones have worked for me.  My answer is my zones have worked very well for me, however I’m not sitting and waiting for price to come to one of my zones.  I’m just using them kind of as a milestone for how the market is doing and where it might go next, and I’m looking to get in on that move on pullbacks to S/R at a micro level.

I feel like making the zones is pretty easy and repeatable.  I do it myself every day and it usually takes me 10-15 minutes tops.  Sometimes 5.  No magic involved, just looking support & resistance and areas of low volume.  Confluence is best.

What I like about my zones is often they’re an exact price.  So no guessing.  And if I have a 1 pt wide zone, or rarely, 2 pts, I know why.  This gives me more confidence than if I had used someone else’s zones.   I’ve noticed that just about any set of levels or zones will look good in hindsight, so it’s how you use them real time that really counts.

I would make these zones available on my blog however since I’m only trading the last 90min I often make them right before I start trading.  However, when I do, I make them as of the close of the previous day.. I don’t take the current day into account.  I do this because the current day is easy enough to see on my chart and also I want to keep my zones consistent and have them always as if I had done them immediately after the RTH close (which I would do if I weren’t often in bed by then).

Comments welcome.  Do you make your own levels?  Do you use someone else’s?  Do you pay for them?  Do you draw them by hand?

Shameless plug:  My zones indicator will plot them on Ninjatrader.  I use this to make my zones once in a text file and have them displayed on all my Ninja charts.  But that’s half of it.  The other advantage is if I go back over the week, I can see how my zones did historically.  And since I created each one myself, I know exactly why.  I’m considering adding a feature to have each zone labeled with a comment about the zone.

 

  2 Responses to “A review of my zones this past week”

  1. Hi

    Thank you for posting your levels for last week. Would you mind posting your levels for this week 2?

    Many Thanks

  2. Philip,

    This is going to sound ironic but I was very busy this week and I didn’t have time to make my levels for Tuesday and I did just fine. So when I was busy on Wednesday I didn’t make my levels and did fine. so I stopped making my levels.

    The ONLY reason is because I’m only trading the last 90min and by this time the day’s range is mostly in so the intraday levels are more important. i use the micro-composite & composite for confluence. and so far that’s working well which is great because I save myself time doing homework.

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