Last Friday we looked at a couple of examples of Market Structure journal entries, one of which involved a weak emini Dow open in the vicinity of the prior day’s low. Let’s quickly review this example, and the lesson it offered.
If you want to review the whole sequence you can see it here: http://yourtradingcoach.com/trading-business/a-simple-step-to-becoming-a-better-trader/
But otherwise, let’s just look at one image which shows the important point – A market open in the vicinity of the prior day’s low offers exceptional R:R if testing the support level with weakness.
It’s my hope that you did get time to read last week’s article.
And that you saw the value in placing that entry into your Market Structure journal, or at least some notes with regards to the lesson.
And if you trade the emini Dow, it’s my hope that this concept was fresh in your mind when Monday opened.
Because it happened again! 🙂
Let’s look at Monday’s YM charts…
Could the trade have failed? Absolutely! This is why we use an active trade management style, in an attempt to minimise risk and maximise opportunity as further data unfolds following trade entry.
But it’s a low risk entry with multiple R opportunity, in a great structural location.
This is a trade worth taking.
It is also a beautiful example of the IMPORTANCE of a Market Structure Journal.
Every session, find something of educational value in the charts.
Study your journal often.
The lessons it provides WILL improve your decision making as you step into the uncertainty of future trading sessions.