Trading Session Focus – YM (12.01)

Looking at the week behind 1 day @ a time…..

Good trading is always going back over the trading day and reviewing the trades that worked out and what kept you in or perhaps took you out too early. Looking for the trend move and remaining in the trade is the objective. It’s your patience and discipline that will continue to grow as a trader when you implement such tools.


YM  – 90 ticks (2 contracts, 1 trade)

12.1p.15 - YM - AM stats

12.1.15 - YM - Overnight

Overnight session with trending price action and retreat with London markets open.

12.1a.15 - YM - Big pic

Post action of the open with a technical bias to the bulls on both swing and long term.

12.1b.15 - YM - First setup

Setup #1. Price action on the crossover with the 20tick and 50/144ema eventually in sync. NQ had a much cleaner setup but with the ES in tow, and price action moving with a $TICK in the 300+, the entry was a good one. Opting to remove first contract at 15 ticks, runner on. ALL 4 charts now in sync to keep you in the trade.

12.1c.15 - YM - First setup - AD line

Confirming market internals on the AD line – ALL green and upside.

12.1d.15 - YM - First setup

2nd Contract removed on a 6-3 Flex renko setting. Former Daily Gap and Open VPOC were now closed. Option here to also just sit calmly in the trade and wait for a pullback and see if price action pushes higher. All things looking green wouldn’t be a bad choice. This option I would exercise only had I kept all contracts on till the first red candle and removed my first candle at the top – not my trade management on this move.

12.1e.15 - YM - First setup - AD line

Checking in with the market internal Ad line – price action plateaued.

12.1f.15 - YM - First setup - ISM number release

Good choice. Great point to remove first contract if I had been in all to to the top or call it a trade. 2nd contract removed and price action started to pullback.

12.1i.15 - YM - 2nd Setup 63

…and pullback it did! Complete reversal on ISM number if that was the catalyst indeed? Either way, would have been out of the trade on the “S” signal or as indicated above, exit at the top on the first red candle. Trend change on market internal charts on the right. Technically, not a bad setup but not great to the short here as price action had a sell signal in two with the other 3 indices. Would have wanted more of a technical line up of market internals instead of playing catch up in the trade. Opt out.

12.1j.15 - YM -AD line resistance

With price action dropping, AD line found support at the 750 and bounced. Good for a possible pullback entry to the upside. This is what I was hoping would have happened at the top but not as deep of a retracement as it did. Either way, if in from setup #2 to the short, watching the Ad line here would be a useful tool for knowing when to see trend change.

12.1k.15 - YM -Euro close

Trend change indeed. Price action bouncing off the AD 750 and back to the upside on a “B” signal. Hello December trading. market internals on the 20t had dropped with price action an reversed, Interesting how the 50/144 still maintained a technical Bullish bias.

12.1L.15 - YM - Post 2.5 hours

After setup #3 to the upside with almost and eventually ALL 4 charts in sync, setup #4 on the Euro close to the short and to post 2.5 hours where price action slowed down to a grind. 

My 2 $ense: To me, overnight action is never indicative of where the RTH will point. With my big pic overview of the market being in a Bullish trend also not indicative of where price action would head today. Intraday setups can be in both directions and that is exactly what I  am looking for an on a daily basis. With 4 setups on the chart on the YM today (NQ having one of the better ones this AM) setup #1 and 3 remain to be what I would call the better of the setups of he 4. not that you couldn’t trade setup #2 and #4 and take some ticks away on the signals indicating trend, but that setup #1 and #4 were both in the direction of the bigger pic and in sync gave a higher probability of a stronger move upside. This is not a golden rule that says every intraday long in a bullish big pic is going to be in my favor. It simply gives me the technical reinforcement that any entry in that direction is one more tool in my favor, just as the 20t and 50/144ema market internals charts support my entries in either direction. Who could of known that price action would retrace that much after a first move today. No one! I have mentioned for several days and continue to that as long as you can get into a setup that runs far enough from your entry, keeping a stop at B/E has the potential to go even higher. Today would have stopped you out with some ticks in the bag. Tomorrow it may run even higher. Evaluate your market internals to guide where may be best to flatten and simply re-enter.

Trending Markets

Looking at the other markets, best of setups during the session.

12.1g.15 - NQ - First setup

In sync with the Market indices @ the open, the NQ seen here on a solid move up with ALL 4 charts in sync. Very strong!

12.1h.15 - ES - First setup

Slight delay on ALL 4 charts in sync, but very strong move to the upside in sync with other 4 indices.


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