Nasdaq and SP500 futures moved up into my low resistance area this morning. I had to go to a hospital for a physical therapy visit so i missed the market's first close into my area. Nasdaq happened to pull back enough for me to just enter late. SP500 never really gave me a chance for a good entry anyways. Nasdaq looked better to me yesterday. With my entry at 2352.75, just two points above where i would have entered (the peach dot), i will see if i can get over 20 points out of this move. With one Nasdaq futures contract that would be a gain of about $400. Now ill just wait, which is 90% of trading.
After 2pm the market started selling off. I was suprised because i had confidence in my Nasdaq chart. In about 20 minutes this trade turned completely to crap. Since im using playmoney i didn't exit right away after the first big down bar and just started looking over everything to see what went wrong. I found a mistake. On that particular chart, i had it set on "show extended session"(after hours trading). One big high that i used for a rising resistence line , solid peach,used this high. This high was from a 1 minute boom/bust in after hours trading. When i stopped showing extended trading on the chart, the high was gone. A one minute long rally in after hours is worthless. So when i then drew in the correct rising trendline, in dotted peach, it went directly to where the sell off started. The market started selling at the resistance line that i should have drawn, damn. The correct line cut my low resistance area in half, so i should never have made that trade. THe ES chart also started selling from a resistance line that i did draw correctly. /NQ was looking better than /ES to me but it turns out that neither ever looked good for what i wanted. Technically, my trade lost 18 points but if this was with real money i would have gotten out around -10 points. From now on, i won't use after hours trading on my charts since it can trick me on intraday time frames. I never had to worry about it for a long time since i only traded on the daily chart for months.
i trade perfectly, april fools
After 2pm the market started selling off. I was suprised because i had confidence in my Nasdaq chart. In about 20 minutes this trade turned completely to crap. Since im using playmoney i didn't exit right away after the first big down bar and just started looking over everything to see what went wrong. I found a mistake. On that particular chart, i had it set on "show extended session"(after hours trading). One big high that i used for a rising resistence line , solid peach,used this high. This high was from a 1 minute boom/bust in after hours trading. When i stopped showing extended trading on the chart, the high was gone. A one minute long rally in after hours is worthless. So when i then drew in the correct rising trendline, in dotted peach, it went directly to where the sell off started. The market started selling at the resistance line that i should have drawn, damn. The correct line cut my low resistance area in half, so i should never have made that trade. THe ES chart also started selling from a resistance line that i did draw correctly. /NQ was looking better than /ES to me but it turns out that neither ever looked good for what i wanted. Technically, my trade lost 18 points but if this was with real money i would have gotten out around -10 points. From now on, i won't use after hours trading on my charts since it can trick me on intraday time frames. I never had to worry about it for a long time since i only traded on the daily chart for months. 
No comments:
Post a Comment