Thank you to all those that wished my Dad well for his prostate cancer treatment in Melbourne.

His operation went well and hopefully he is on his way to a great recovery.

I am back on the Sunny Coast and have spent the last week testing signal generating software that we have been working on.

Programming is expected to be completed with a working version next week.  Just in time for the Brisbane ATAA meeting.

Getting some good entries and setups. 

As a sneak preview here are some entries that have signaled lately with the beta version.

Dax signals.jpg (91.10 kb)

6E signal.jpg (96.64 kb)

I've mentioned in my blog in the past that I am always on the lookout for rejection bars.

These visual clues give you a heads up on a likely directional trade.

Multiple bars with tails can show where price movement has hit a road block.

This is the Dax chart of yesterday afternoon and the morning session today.

I highlighted the major areas but you can see a few minor areas that the tails held a move.

DAX tails.jpg (132.12 kb)

Here is a little play that I trade with good risk/reward parameters.

This trade is looking for a base to fail.

Often when the trade is successful there is substantial follow through.

On a failure of the pattern there is the possibility of a reversal trade.

I am looking for a base to form that is easily identified.

I then want to see price spike through support and quickly retrace back up.

In this example we can see a nice reversal bar with a tail.

This is where the range bars give great visual clues for trade setups.

Daxshoulder.jpg (107.39 kb)

A few posts ago I decided to concentrate on currencies to free up some time for myself.

Focus on one thing and hit the setups as they appear.

Guess what, that completely went out the window and I have been trading everything.

The Dax, ES, Hang Seng, SPI, stocks and currencies.

It was just too boring for me.

Over the last 10 years I traded hundreds of times a day and to just trade in the single figures was like watching paint dry.

The good thing for me is that my style has tightened up and the results have been consistent over the various instruments.

January results were positive $47,000 which was reasonable considering I spent a few weeks away from the market.

I feel I am finding my footing on the Dax with some consistent results and I feel very relaxed with my trade style and risk.

Today I traded the Dax with an initial long trade that failed.

Instead of just closing out the trade for a loss, I reversed the position as the structure looked like it had changed to favour a downside bias.

In trader development this is one of the most difficult things to do in an objective manner while trading real time.

There is a fine line between reversing for a new setup versus reversing because you're revenge trading.

Revenge trading has been a specialty of mine which has provided some of my biggest losses over the years.

The only way for me to stop this mental problem has been to have a consistent structure for every trade I take with pre-planned what if scenarios.

I know I am trading well when I can adapt to new information quickly and act decisively.

Below is the Dax trades for the first 2hrs of trade.

Dax1min.jpg (93.52 kb)

Trade results.jpg (75.43 kb)