Trade What You Know…Verify What You See

“Trade What You Know….Verify What You See”   This is what Polaris Trading Group instills in each of our member traders daily…It is based upon a solid knowledge base of understanding the market auction process and applying proven trading principles, based upon verification of market generated price data. Trading is not a guessing game, although many on a daily basis try to “predict” where price is headed or will close on a particular day. They continue to trade yesterday’s action, always two steps behind professionals…No wonder the majority loses. Professionals on the other hand consistently win because they know what to look for in the price auction and take definitive action executing, managing their trades…In other words, they trade what they know (what works)…they verify what they see (price action) and take action timely.

Bulls have done a remarkable job absorbing any aggressive selling, then propping prices back higher just in time for corporate earnings releases this week. Overnight trade has e-mini eight (8) handles higher at 1970.75 with 117K trade as of this posting.

Let’s get to today’s hypotheses:

Scenario 1: Price has already penetrated and converted Prior Day High (1963.50) and has achieved first price objective at 1970.50…Next target is 1972.25, followed by 1973.50 – 1976.7 zone. Any pullback to 1968.50 would be an opportunity for long entry , which is current VTMP.

Scenario 2: Failure to hold 1968 handle (VTMP) on pullback would target a move back to PDH (1963.50) for renewed buy response. Violation of this level suggests deeper pullback is warranted to find buyers. Downside levels to be watching are 1958.25 – 1961.50 (CPZ)…Below this zone targets PDL and Breakdown Target 1952 – 1953 zone.

Trade Strategy: Price is solidly higher in pre-market trade, as such, the early trade strategy will be to look for pullbacks to key Decision Point (DP) for long-side trade. IF price fails at key upper DP’s, THEN short-side Premium fades will be considered. As traders, we must remain flexible and willing to trade both sides (long/short), but remain aligned with dominant force.

Focus on the Trade Process…Not the Outcome….ALWAYS USE STOPS!

Good Trading…David

Habitude Nine
I will identify my mistakes and learn from them. I am optimistic, realistic and honest. I will not make up stories about the good or bad things that occurred in the past or are happening now. I admit when something is not working. My optimism gives me faith and courage. I will not fall prey to blame and fear.


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