LET THE MARKET COME TO YOU

Chasing market price is one of those things that some traders venture into.  Hopefully, they learn their lesson the first time, provided the first time did not wipe them out.  Chasing price is in the same chapter as revenge trading, double up to get your money back, and hold, it will come back into profit.


TODAY

An alternative to chasing price, is to let the market come to you.  This method starts by reading the market as to stress points, and establishing your entries and exits.

When the market opened, we had our plan in place, and let the market come to us.

[09:11] <Chartmaster> es 5m has established a neutral area, possible long/shorts area, and bo long bo short consideration. long bias slightly favored

[09:35] <Chartmaster> will wait for the pb  this first run up will trap those jumping in late  ie the long was around 25.5

[09:39] <Chartmaster> traders shorted at the bo point  longs trapped selling/getting out 
[09:40] <Chartmaster> no gain lot of pain  :)
[09:40] <Chartmaster> when they are out  we enter..
[09:41] <Chartmaster> 25.5
[09:42] <Chartmaster> will buy in N zone next push up
[09:43] <Chartmaster> 5t risk now...
[09:45] <Chartmaster> +1 and run

By waiting for our trade, the market rewarded us with a move in our favor.  The runner was at +2 for the minimum.  The market could have continued long.  Could will get you into trouble.

THE CHART AND SOME OF THE CHAT:

[12:27] <Chartmaster> long 27.25 area  upper tl bo   sh 23.5
[12:30] <Chartmaster> bracket orders to enter trend bo's
[12:31] <Chartmaster> i want to the bull to be "healthy"  and the bear "determined"  to trend
[12:32] <Chartmaster> although aggressive trader can sh here  25.5 area expecting ema failure
(this was good for +3)
[12:45] <Chartmaster> looking like a fbo pb entry possible leg 2
[12:48]    (nick removed)           fbo pb meaning retrace up?
[12:49] <Chartmaster> yes  they should pb to 23.5   approx 50% of the bo  if not set another sh below b37
[12:51] <Chartmaster> after 23.5  bull would go to ema
[12:52] <Chartmaster> mkt deciding now..
[14:45] <Chartmaster> took time but they got that pb we discussed  23.5 and ema
[15:06] <Chartmaster> that lower green line was the bo order sh tends to follow prior trend
[15:07] <Chartmaster> out
[15:14] <Chartmaster> leg 2
[15:15] <Chartmaster> failure they pb to 20.5 to close

The last break out  target continued for some 9 points as of this writing.  Identify key points, and let the market come to you.