Saturday, July 26, 2008

about a trading in a 5 minutes=)

I would like to share with my thoughts about a trading in a 5 minutes after opening. I have added something from my common knowledge, plus my own that gained from my experience of working with this instrument. I have gathered three patterns, which I always use for trading. But, first of all there is a preview analysis for all variants.
Let`s see:
All prices of a present day from 00:00 - 09:29 we are marking a level with the maximum size.
All prices of a present day from 09:00-09:35 we are looking where was the maximum Bid and the Ask for a period. Then we are memorizing where and how many of bid and where and how many of ask, probably one of them is coinciding with the maximum size per time-period. In accordance with situation on 09:35 we have two or three price levels.

The first pattern.
It`s very important that in the field where the gap was happened on the opening (09:30-5) the opposed size would not be taken out.
In our case we shouldn`t have a lot of BID in the gap`s point and ALSO around the level where a size are located for 00:00-09:29. We could have Ask`s odds and it would be nice.

The second pattern.

It is where the opposed size was taken out(in our case the ASK)we have to open against market`s primary jump, in the direction of the size.

The third pattern.
Besides, partly it was finished today. Around the level where a size is located for 00:00-09:29 on the opening (09:30-35) a large size was taken out with a big odds and the price is down. At this moment you are just thinking, are these Bids and Asks working when we have a such opposition?! Then a market after the jump will go down and begins to go up to the large size slowly. It`s hard to calculate this turn`s point by clusters, looks like nothing was opposed to the movement, but a market turned around. I`m looking on other methods of analysis to catch this point.

This whole picture has a look in aggregate with other sized levels and combo. The stops are setting individually, as the profit`s points. I was making a test on a history, what can I say there were different situations, but most of them were positive.

Today, in the period of 30-35 there were lots of ASK on 1403 and then a large size on 1398 fifty-fifty for ASK and for BID. The price is gone down, but then came back to 1398. Here was a good point for selling, because in a short term perspective 1403 is blurred by the level 1398, and in direction to it you need to trade later. It were my thoughts. I didn`t sell it in time. When a market become at 1380-1385, I thought that the time to buy on the movement to 1403 has come. Came out at 1393, as 1395 didn`t move to the top.
Good luck!

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