Nickajack Creek Trading Co., Inc.

Support and Resistance Day Trading

December 4th, 2007

12/04/07 YM Trades

Today was another range bound day.  The YM opened about 60 points down and rotated around the open price most of the day.  I did not take any trades today.  Looking at the chart, I just don’t see any good trends from which to trade.  This would have been a good day for a range bound trading strategy but not for a trend based strategy like the one I’ve been documenting in this blog.  My software marked a few setups and there where two divergences so a few profitable trades could have been found.  The first blue arrow could have been a trade because it looked like a pull back in an up trend, but by 11:30am EST it should be pretty obvious that the YM is not trending and would not be trending until it breaks from it’s range.  It made an attempt to break around 12:30pm EST, but slipped back into it’s range. 

12/04/07 YM Trades

December 3rd, 2007

12/03/07 YM Trades (second look)

I was so overwelmed by the number of trade setups found today that I did not think to look for trade divergences.  There was a divergence at both the bottom and the top of the YM’s range today.  Either trade would have resulted in a two target win.  Here’s a revised chart with the divergences. The chart shows the importance of at least not trading against divergences.

12/03/07 YM trades (2)

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December 3rd, 2007

12/03/07 YM Trades

The YM had a good range today but never provided any real follow through on trades.  It spent the day ranging between the 13330 and 13428 daily support and resistance areas.  The volatility was very high with several price bars were larger than 40 points.  Because the market passed through the 13366 and 13393 daily SRs several times today, there were many more trade setups than usual today.  Since there was such little follow through, only 3 out of 7 trades reached their first target.  The other 4 trades setups would have stopped out for losses.

12/03/07 YM Trades

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November 30th, 2007

11/30/07 YM Trades

I let myself get chopped up today by not realizing the YM fell into a consolidation range between the 13425 and 13372 daily resistance and support.  By the time I did recognize that there was no trend, I had already taken 3 trades in the consolidation range.

11/30/07 YM Trades 

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November 29th, 2007

11/29/07 YM Trades

Today was a ‘normal’ day with no real trend.  By ‘normal’, I mean a normal bell curve on a Market Profile chart.  In the late morning the YM looked like it wanted to start trending up, but it was not to be.  My software only spotted three trade setups and I only traded one.

11/29/07 YM Trades 

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November 28th, 2007

11/28/07 YM Trades

What a monster day!  Rarely do we get end to end trends like we had today.  Most of the time when the YM moves nearly 400 points, it’s to the downside.  Today was just incredible.  My methodology netted 204 YM points per contract.  This was one of the largest winning days I’ve ever had.  As I begin writing this trade log I see the YM is still trying to move higher (3:40pm EST).

11/28/07 YM Trades 

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November 27th, 2007

11/27/07 YM Trades

Today was a big up day attributed to news of a Dubai based investment firm investing billions of dollars into CitiGroup.  The methodology was able to capture a few trades, but volatility became too high in the afternoon for my risk tolerance.  For the second day in a row, the opening bar signaled a trade setup but like yesterday, I did not trade the signal; prefering to wait for the market to lose some volatility before starting to trade.

11/27/07 YM Trades 

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November 26th, 2007

11/26/07 YM Trades

Back to earning a living… 🙂  Today started off kind of slow, but the market really picked up this afternoon.

11/26/07 YM Trades 

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November 23rd, 2007

11/23/07 YM Trades

Even though it was a short trading day, the day provided many trade setup opportunties.  Today was basically an end-to-end trend day.  The YM closed up 168 points without making a LH or LL.  I was thinking this morning about all the trade setups that never could develop over the last couple of weeks because of market volatility.  I thought well maybe I should take a look at range charts to see if it would generate more trade setups.   

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November 21st, 2007

11/21/07 YM Trades

Volatility returned today on smaller volume than yesterday.  In general, it’s usually not a good idea to trade before long holiday weekends.  I’m kind of surprised the market moved so much.  Because of the volatility, the YM did not provide very many setups with reasonable risk.  The US markets will be closed tomorrow and open again on Friday.  Do not expect a normal trading day on Friday.  It’s probably best just to take the long weekend off.  Happy Thanksgiving to everyone!

11/21/07 YM Trades