Trading Boundaries

As the time for the beginning of our training effort gets closer, I'm finalizing my notes and lists of what we are going to cover.

One of the topics will be talking about is knowing where you are in the market.

In sports, there is a football pitch or field with lines that sets the limits of play. In tennis we have a court with a net and lines setting out the field of play. Everyone participating knows where they are. They can see what they are and where they have to go to win.

I look at my charts in a similar way.

I define my field with the keltners. When price is outside the keltners I am looking for a trade to go in the opposite direction because that is the field of my play. I divide the field into upper and lower with the 33EMA. I use the Profile in a similar way. There is the VAH and VAL, both previous day and developing. They too are boundaries and exceeding them leads me, all things being equal, to looking for a trade going back to value.

This simplistic look at the charts is the first basis for learning to trade. We then start building on this and look at order flow when we get to those important areas. Not complicated but important to define where you want to do your biz.

Today's trades started from the short side until the Profile balance needed a rally up to the VAH. Strategy from now will be to sell VAH.