Trading Journal: How to fine tune a long entry when you deal with a long setup on 30 min timeframe
I will be posting real life case studies describing how I use MONKEY Cycle Indicator in my trading.
Tuesday opened after overnight decline in indices. The Monkey Cycle Trader indicator generated Cover Short signal before open:
Please note that those signals came from 30 min timeframes. If you really want to fine tune your entry you need to keep an eye on 5 min or 3 min chart to get the same bottoming signal on a micro timeframe.
The indicator printed the Cover Short signal on 5 min ES mini chart around 10–00 AM. That was a trigger for a long trade.
By that moment I shared similar long setups in three triple bullish ETFs:
By 2–23 PM those setups delivered nice gain:
The problem with that rally was that the market was still under broken resistance on higher timeframes like 240 min and Daily:
Therefore, I have to consider that rally as a corrective bounce. This is why when I got the first topping signal for the day produced on 5 min chart of $QQQ around 2–24 PM I alarmed members of the Chat Room: “The algo suggests an exit”.
The market kept pushing higher for another 30 minutes but dropped hard after close.
Your goal as a trader is not to buy at the bottom and sell at the top. Your goal is to detect upcoming rally and go long upon confirmation of a move. That move up today was a good opportunity to make money and the Monkey Cycle Trader Indicator did a great job navigating that volatile market environment.
