Trading Plan 8.18.14

Monday, August 18  – Trading Plan

Daily VLOG Recap (NQ/YM/ES/TF/QQQ/DIA/SPY/IWM):

Available to Marketfy Members

Russell Status:  Price action continues to the upside. Heavy volume FRIDAY to the downside. Price unable to hold above 200 day moving average. Holding above long term key Fibonacci levels REALLY need to break that 200 day moving average to get more out of this market. Market will eventually pick a direction.

TF/IWM Daily levels available for  Marketfy Members.

Monday Plan: 

TF price action UPSIDE and in unison with momentum, BIAS continues to the UPSIDE for Monday. Friday price pullback in an uptrend has greater probability downside than up. Friday volume way above norm on sell off – reactionary to world events?. Would like to see price break above 200 day ma to continue higher to at least the swing size hour or average move up. Trade with caution. Wait for the setup. Remember, the market owes you nothing. It goes where it goes.

TF Average Daily Move: 3-2 for last week

IWM price action UPSIDE and in unison with momentum, BIAS continues to the UPSIDE for Monday. Probability of upside greater than TF.  Like the TF, would like to see price action above 200 day ma to stay in trend or will look for the reverse. Trade with caution – looking for direction.

IWM Average Daily Move: 3-2 for last week

Stocks: Look for increased volume at market open of at least 50% above norm for average three month volume in 5 minute increments. Recommend to run scan on watch-list (IBD 50, Q50) for price momentum.

…as always, ready in both directions, regardless of trading plan. When opportunity presents , wait for 2 bar confirmation crossover and use 5/34 EMA and 5/13/21/80 to stay in trend. Trading rules always a gold standard.

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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 markets I am trading accordingly. No crystal balls 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 and look for the momentum move. My simple trading method by use of a combination of exponential moving averages limits my loss and times my precise entries regardless of where price action is. 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.

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