We had another day of very volatile trading as the market weighed in on all sorts of data at different times of the day. Early on, the China capital infusion announcement had the traders all excited, but that gave way to pessimism and the market finished with clinker…down seventy. As you can see from this DecisionBar chart, there were ample opportunities to trade, though all of the signals were not fully confirmed by the risk oscillator. Remember, for a long trade the oscillator should be above zero and moving upward, and the exact opposite for a short trade. Of course, there are other parameters to follow as you learn the program, but I traded today with a high degree of accuracy.

I have been trading the YM for the last several days because it is, in my opinion, a little easier to trade than the ES contract. The prevailing opinion on this subject is that there is less black box trading on the YM so there is less movement that can be considered “market noise”. I can neither confirm or refute the argument, but for me the YM is a more reliable contract on days when I expect a good deal of volatility.