Short Trade Example
ES Futures
Before we jump into the Trade Review I would like to point out that this will be a series that will have two posts a month. One will be a Short trade and the other will be a Long trade. Down the road I can also show Option trade examples. The goal will be to show different market conditions on each review so you can build an understanding on what factors are changed and unchanged. In the future I can also show an example how I would approach a stock like AAPL 0.00%↑ or TSLA 0.00%↑ with analysis on S&P500 structure noted for potential headwinds or a setup that make just work in the stocks favor. Overtime you can start to map out when volatility occurs which can later be capitalized on. Let’s drop the gates and begin this trade review!
Breaking down a Trade step by step
There are many rules each trader will create based on their system and it will vary like nothing you would ever expect. No matter what, I must follow my system (Trade Planner) or I will be vulnerable to a potential reckoning.
Step 1: Identifying the current trend
Nearly all my plans I use a 15 day 5 min chart with Daily, Weekly, & Chart Profiles. If you want to have a reference to my exact Volume Profile setup make sure to check out my Introduction to Volume Profile Series! So using this chart I will look where value is on the Chart profile (Red) which is where most of the volume in the last 3 weeks has been distributed. Are we sitting in a HVN? Have we just moved away from value? Has the market been under volatility recently? All these questions I ask myself to form context into what’s ahead. Let me point out staying in tune with the market is vital, every day you must get screen time as there’s hidden clues for the ones that pay attention.