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July 29, 2009 YMU9
YM Chart for July 29, 2009
I traded the YM contract today because the setups on the ES were so fuzzy yesterday it wore me out. I didn’t list my trades, thought I would have you all see where you would have entered and exited. As you can see, there was a strong correlation between the CCI entries and the stochastic entries, so it wasn’t a terribly difficult day to trade.
I traded 2 contracts all day, which is ten dollars for every point on the Dow, and the market stayed fairly active. Notice where the Pivot is today, and how the market swings up to and around the pivot. The pivot was a very important line in today’s trading.
I urge everyone to experiment with the CCI numbers, and see which setting sets up best for you on different contracts. I had the periods set to ten today and that seemed to work pretty well, though I switched to sixteen for a while and had about the same results. My Stochastic settings (5,3,3) never change as they seem very reliable. I have used that setting for years.
In the INO-TV series there are lectures by George Lane, the inventor or the Stochastics (though some dispute this), and Gerald Appel, the inventor or the MACD system. Both videos are very helpful in understanding the inner working of both oscillators.
In the past you have said trade with the trend. Long when above the 89 period ma and short when we are below the average. If a set up comes along that is good how often do you break this rule? At around 7:54am today 8/29 on the 1 minute there was a good long entry opportunity on the ES but we were below the MA. I took the trade and did well. Any thoughts? I realize this is intended for comments and not questions but I thought it doesnt hurt to ask. Thank you.