Since current day i will start posting some of my trades marked with the tag «trades kitchen». The purpose of it is not to indicate you my current bias, or just give you an advice to sell or to buy. But to show you my way of thinking, what i'm using while trading, what reasons i'm emphasizing to open & to close a trade. I don’t plan to unveil all my approaches, but still hope new «trades kitchen» posts will be good & useful reading for you.
So here i go with the 1st, let it be profitable, example of the short-term trade. Below you can see the chart of the morning 9th september 09’ trading in ES (S&P 500 futures). ES was on the brink of strong break out above volume cluster 1022.5p – 1028.75p (red background), that corresponds to the free open room to fresh year highs above 1038.75p – ESU9 contract (which tracks ES from june to september current year) 28th august past high.
ES have managed to climb above top line of mentioned volume cluster but it was made with multi divergences with majority of popular oscillators, including one of my favorite 3/10 oscillator (see chart above). In the same time, financial & material sectors were underperforming SPY. While market had made fresh high, those two sectors did not confirmed it (see chart below).
Keeping in mind that fact, when NYSE TICK (short-term indicator covering bulls/bears placing) have finally appeared not to post fresh high in tandem with ES (so, bearish diver with TICK showed up), I have entered normal size sell position.
Soon ES pulled back to downside. But later there went following factors I had interpret like a buy signal – in a matter of opened short – fix signal. 1st – at 16:33 Zurich time (10:33 NY time) NQ (Nasdaq Composite) & ER (Russell 2000) CME index futures didn’t make fresh lower low as ES have posted.
2nd issue – ES have breached VWAP (volume weighted average price), calculated from the beginning of the main session.
And the 3rd factor was continuing bullish TICK. At the first 15 minutes of the session bears have tried to take market under their control. But as we can see it was useless, and TICK, that didn’t manage to post number below minus 600, nicely demonstrated bulls superiority (see 3rd chart from the bottom).
So here i go with the 1st, let it be profitable, example of the short-term trade. Below you can see the chart of the morning 9th september 09’ trading in ES (S&P 500 futures). ES was on the brink of strong break out above volume cluster 1022.5p – 1028.75p (red background), that corresponds to the free open room to fresh year highs above 1038.75p – ESU9 contract (which tracks ES from june to september current year) 28th august past high.
ES have managed to climb above top line of mentioned volume cluster but it was made with multi divergences with majority of popular oscillators, including one of my favorite 3/10 oscillator (see chart above). In the same time, financial & material sectors were underperforming SPY. While market had made fresh high, those two sectors did not confirmed it (see chart below).
Keeping in mind that fact, when NYSE TICK (short-term indicator covering bulls/bears placing) have finally appeared not to post fresh high in tandem with ES (so, bearish diver with TICK showed up), I have entered normal size sell position.
Soon ES pulled back to downside. But later there went following factors I had interpret like a buy signal – in a matter of opened short – fix signal. 1st – at 16:33 Zurich time (10:33 NY time) NQ (Nasdaq Composite) & ER (Russell 2000) CME index futures didn’t make fresh lower low as ES have posted.
2nd issue – ES have breached VWAP (volume weighted average price), calculated from the beginning of the main session.
And the 3rd factor was continuing bullish TICK. At the first 15 minutes of the session bears have tried to take market under their control. But as we can see it was useless, and TICK, that didn’t manage to post number below minus 600, nicely demonstrated bulls superiority (see 3rd chart from the bottom).
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