Dear fellow e-minis traders :
Followed the S&P500 10 min. stochastic signal and shorted the ES. The stochastic kept trending down but the ES just won't plunge. Well, the ES was strong. The S&P500 was well supported above the R3 (!!!) pivot point during that time-frame & day. I decided to close the trade at zero gain (& loss) when I saw the 10 min. stochastic started turning up. You might have ask, why didn't I long the ES since it won't buckle when the stochastic was trending down. That was my answer. The S&P 500 10 min. stochastic was trending down; and I felt not to trade against that trend. 
As frequently encountered, the ES did dip afterward for a while AFTER I've closed my ES trade.
Regards,
Tony Chai
Friday, April 10, 2009
ES Trading - 9 Apr 2009
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3 comments:
i agree it's better not to trade against the trend.
trend is your friends...
http://trade-4-living.blogspot.com
Hi :
I also realized that, when there's no clear indication of where the S&P500 10 min. stochastic is trending, you just have to be patient to stay aside.
In my earlier days (it's not that long ago :) trading the ES, I entered most trades pre-maturely without giving it a little more time (yes, a little more, not too much; if not it becomes lagging) for the indicators to show a more definite, stronger trend.
I'm still learning this in my daily practice.
Regards,
Tony Chai
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