Today provided may opportunites for trades as the YM moved down 60+ points, then up 100+, then down 175+, then back up 130+.  I’m continuing my ES scalping training and did not trade the YM.  I was caught up in the minutia of a 50t ES chart while the 5 minute YM chart provided many spectacular trade setups.

10/25/07 YM Trades 

Trade A – The market opened in a consolidation at the 13726 daily SR.  A LH was recently formed, so the trade to look for is a short.  This trade would have hit target 1 and come up short on target 2 by 5 ticks.

Trade B – The market moved down then back up forming a HH on a pull back to the 13698 daily SR.  This setup could have been read as either a long or a short setup, depending on how you define your price swings.  I would be looking for a break out in either direction.  This time the market broke up, so a long trade would be taken.  This trade would have reached both targets.

Trade C – This trade is another break out type trade as the market moved below the daily SR.  The same candle formed a LH before breaking down.  This trade would eventually make both targets.

Trade D – This trade is a perfect pull back type trade in a down trend.  A short below the low of the previous candle would have been the entry price.  Thsi trade easily made both targets.  This trade could also have been a scale-in trade to trade C.

Trade E – The market stalled at the 13653 daily SR and provided an entry opportunity with it’s small pull back.  The down trend was strong, so the pull back was weak.  This trade would have also made both targets and could have been a scale-in trade to trade C or D.

Trade F – The market made yet another pull back in it’s down trend by consolidating at the 13624 SR.  This trade could have also been a scale-in trade and would have only reached target 1.

Trade G –  This is a counter-trend divergence trade.  The YM made new lows for the day, pausing at the 13950 SR.  However the stochastic did not go lower and was clearly diverging with price.  The small candle consolidation at the SR provided a perfect low risk trade entry for a counter trend trade.  As mentioned in my divergence write up last night, the first leg of a trend change is usually the largest.  In this case, the YM moved up over 160 points.

Trade H – The market paused once again at the 13653 SR area providing another opportunity to take a long trade upon a break to the upside which actually happened on 4 separate candles.  However, it would have been wise to wait for the candles to get small enough that you can reasonably define your risk.  This trade would easily reach two targets.