Afternoon,

Thought for the day:

It is literally true that you can succeed best and quickest by helping others to succeed.
– Napoleon Hill

Value Area for tomorrow:

693.50 - 699.80

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Monday’s Value Area  -  693.80 - 698.30

Afternoon,

I am sorry that I was unable to do the post for yesterday (Thursday).  I am working on a trading room/mentoring program that will be available in the near future for a limited number of my readers. I am currently working through the technology issues with a few of my “techie” readers. We have finally found a desktop sharing platform that I am comfortable with and have a few more days of testing before I am ready so stay tuned. So on to the update.

The market opened flat today (Friday) but did not stay flat. It proceeded top  drop straight down, rallied straight up before stopping right at the VA (value area) high to the tick. There was an inside vertical bar that formed right at that area at 9:09 am CST with a short entry of 699.70. Woodies Pivot and the 56 EMA was right below the entry. The price paused at the 56 EMA so I took a small profit of 8 ticks. The price continued down and paused at the VA low before railing strongly and forming another IVB (inside vertical bar). Unfortunately, I could not find a strong enough resistance area to take the short trade. That trade would have made the objective if I could have found a reason to take it. The novice trader would have beat themselves up over missing that trade. Once I make a decision to take (or in this case pass) on a trade, I go on to the next trade. The fact that the trade worked make no difference to me after I have made the decision not to trade. Dwelling over not taking the trade is detrimental to your mind set and very costly in psychological capital. Learning this on concept will make you a better trader. Her is the chart for trade 1.

Trade 1

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 Value Area For Tomorrow 712.90 to 717.40

Afternoon,

Today the FOMC released their much awaited decision on interest rates and it was a real market mover. The Russell 2000 e-minis gaped up and pulled back and finally broke to the upside. It finally broke the first hour high and had a trader’s trick set- up above the Value area high. I did not take the trade as the 161% fib area as measured from the high  pivot at 8:48 am CST to the low of the day was right above the entry area. Here is the chart for the potential trader’s trick set-up.

Potential Trader’s Trick

Click on chart to enlarge.

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