Daily Score: +.500

Batting Average: 75.00%
Full Stop %: 00.00%
EpT: .50
 
 
My numbers were solid today although I finished the day at only half of my net daily goal. I found myself feeling a little spooked all day due to the high Put/Call Ratio. Thus I cut off a lot of my scalps 1 tick too soon which added up throughout the day. Not sure if me being worried is a good thing or a bad thing. Obviously, it cost me a few ticks today, but there is this other part of me that says that the same kind of market awareness will help me in the long run. Only time will tell which ME is right.

I am definitely feeling much more patient than I have in weeks past, this month should be a crucially telling month for me as far as this new method of scalping goes.

This play is a new setup that I tried out today that is worth analyzing. I have it labeled as “5+2ndTCKH-” on my spreadsheet (uninspiring I know, but descriptive enough to suit its purpose).

It aims to take advantage of failed Price Divergences. A price divergence is one way I identify continuation patterns. If the TRIX pulls back towards 0 but price does not, then when TRIX turns back up, this is often scalpable. But Price Divergences are much less reliable than TRIX divergences and often fail. This play is my way of trying to find a way of taking advantage of these failures, and again, only time will tell its long term resiliancy.

The 5+ part of the equation means that there must be at least 5 consecutive down bars on the TRIX, the more the better as far as this play goes. I then want the last $TICK peak to be at or near the high of its most recent range. The play is taken when price then makes a subsequent 2nd peak in the same range as the prior AND closes down. At that time, a scalp may be taken depending on the current price volatility.

In the above play, I entered right where I wanted to, but I completely got scared out of the play when the 55-tick WRB+ appeared a few bars later. This is what made me qualifiy my handling of this play as “BAD” in my notes…this exit was horrible on so many levels. The $TICK had shallowed out a little bit, but was no where near reversing; The TRIX was still very much sloping down; There was no significant Volume+ to worry about; and Price had just broken its 55-tick rising Trendline.

All these reasons mean that I should NOT have exited the trade. I think my aforementioned fear of the high P/C Ratio played a large part in my succumbing to my nerves there.

As the Summer winds down, my wife & I will be heading out of town this weekend and next. I’ll be off for sure this Friday and next. I may trade tomorrow morning, it really just depends on how soon Kimberley wants to hit the road to go see her folks. Either way, I doubt I’ll have much time to blog tomorrow. If I do, I do. If not, I’ll catch up with everyone Monday.

Good Trading!