Back from holidays and a little slow to get into the blog writing.

A trade setup tonight on the Euro which has some unique characteristics.

Long term viewers of the blog and those that have done Alexander's Pride Trading course know of it as a pump fake trade.

The trade does enough to give longs hope with price making a higher high but the major trend is down.

This price action nails the retail bottom pickers looking for reversals.

As buyers fail to push price up any further sellers take the batten forcing long traders to cover and setting up a down move with the trend.

This trade needs to be traded in the right context to get high win percentages consistently.  As do all trade setups.

In partnership with Alexander we have been developing an analytical system for traders.

I have been using a beta version successfully in live trading and the execution of this euro trade tonight is an example trading 3 contracts.

I am aiming to have a fully functional version ready for my ATAA presentation in Brisbane providing any bugs are sorted with our engineers in the US.

Nothing better than putting my head on the chopping block in front of a crowd.  Should be fun.

pfa.jpg (95.32 kb)

It looks like Dr Brett has been getting dogged by the cowboys out there on the web.

It just shows that you need to be vigilant and ask the hard questions before paying for education, brokers etc.

I've seen many shonks out there. Ask for trading statements and/or strong reviews. That will help in separating the good, bad, and ugly.

I like his blog heading.

The Reason I Don't Partner With Your Firm is Because You Are Cheap Whores

http://www.traderfeed.blogspot.com/

I've had a few questions on the prior blog on dax setups.

I didn't explain the entry criteria for the setup I showed on the previous blog exhaustion trade.
I was trying to get across the structure of the market needed before the trade setup.
The higher low area is the entry area on the long side trades.
I need to see a failed retracement at this point.
This is where sellers are forced to cover with the previous price structure exhausting selling strength.
My entry is 2 bar high then an entry on the next higher tick.
I find my risk is small compared to potential reward.
This is a setup on the Dax I traded today.

Dax extrade.jpg (138.38 kb)

Monday trading on the Dax and I have had a whopping 4 contracts traded for the morning session.

One important area to watch is the stock market opening one hour after the futures open.

This is where we often get fast moves and shakeouts as occurred today.

I took an initial position on a retracement of price to 5720. (Minor support)

Then I anticipated a shakeout as the underlying stock market opened and took a 2nd position after price pushed up from its lows.

The shakeout pushed price just below the first pullback setting up a pump fake with trend.

I scalped out the first and let the second position move to initial resistance at 5745.

I left some on the table and should of had an extra contract on but was happy with the 20+ pt move.

I also managed a larger position long on the evening session of the Aussie SPI which helped my equity return.

(sometimes the SPI price movement can lag trending moves which provides opportunity)

Dax shake.jpg (95.03 kb)