Nov 222013

I expected balance (which admittedly wasn’t very logical) but when I saw ES making new highs I knew I was wrong so I cut my loss on the pullback.  At that point I knew I wanted to trade long so I waited for price to come to my zone (the exact spot where I initially got short) and took the long.

Note that the signals were bullish when I entered my short so starting next week I have a new rule:  Don’t fade signals.  I don’t need to see the sell signal because I’m trading off a zone, but if I have signals against me I won’t step in front of them.  That would have prevented a couple losses this week and so i’ll see how this rule does for next week.

The second trade was against selling signals but since there were both buy & sell signals there they cancel each other out.

It’s subtle and nothing is mechanical, but I do try to make it consistent and repeatable.



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