Trading Plan – 6.26.14

Thursday, June 26  – Trading Plan

While I am a believer in simply trading the charts and what is in front of me from the market open, I will look for market trend based on the internals market wide and the TF accordingly. No crystal bowls or mirrors to tell you where the market is headed prior to the open, as I have no clue. Waiting on the 25m Open Range to set and subsequent 1 hour open range, with levels above and below I can manage my trade by removing contracts or re-entry based on contract size. Either way, it’s all about patience and discipline. My trading plan is simply a cognitive exercise and reminder to always stick with my plan, regardless of which direction the market goes.

Outlook and Plan: 

GPD in the dumps. Market seemed to have engulfed that information the day prior as price action seemed to just rise today after a slump the day prior. Ready for both sides of the market, AD line popped and gave rise to several in range trades and trade of the day at 3 hours post market open to the close. Both average move down and up HIT.

Thursday Outlook: Price up. Momentum down. Swing size hourly change to upside after being hit overnight. Price back above 8ma. Approaching weekly opening price from the downside. This may be a tough one to call as I would like to see momentum and price in unison to continue the trend with some assurance. As posted yesterday, it’s just a plan. Ready as always in either direction.

I keep it simple. Look for the crossover on the 8ma with two bars. Confirm on the 5/34 EMA. Stronger trend if 5 above 13/21/80 EMA which keeps me in the trade in either direction and manage contracts at given levels of resistance or support based on direction. 

Bottom Line: 

Bias for Wednesday seemed to want to push this back up. Price bias upside. Momentum downside. Momentum should catch up in either direction. Will look for strength in market action upside.

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Levels posted here

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