ES Trade Review

Transcript
“Okay, let’s cover a sample trade review that we actually did live on Zoom with one of our members. Because I was talking about the importance of submitting trade reviews and critiques, this longtime member of mine says he was shy to actually post the trade. So now, trade critiques and reviews can be submitted anonymously. But I want to show you an example. He didn’t understand why this long went against him; he felt it was a perfect core strategy entry. Why did that happen? Well, here’s the reason: This break level is nothing more than this tested break level back here—two blue candles, two-candle clearance break level. It was tested here, and in fact, the body was tested here. And once the body is tested, the wick is tested. But it is interesting to note that both the body bounced, and the wick bounced. Now, once the body bounced, I told him, ‘Initially, I would have had it marked here as well. Then, as soon as the body bounced, I would move it to the wick.’ I would make the note ‘tested.’ And if I go back in time, let’s go back in time to here, you now know I’m not going long here. Why? It’s a tested break level from back here. Now, he also said, by the time that level got there, he could only see this, so he thought that the level was there. This is why we keep break levels on our chart till they’re tested. Because I can’t see the price action to the left of this chart at this time, it’s critical that I keep break levels on my chart marked as ‘tested’ until they are broken. And you would know not to take a long here because what’s going to happen is most likely when it comes back to this level, it’s going to blow through it. Why? Because it’s already tested. Stay green, my friends, and to learn more about our group, go to microstrader.com.”