[KeyToTheCastle]

Updated USDCAD zones. Creating, understanding, and using these zones to pinpoint value is step 1 of my trading plan. The first step for me is always to determine if a particular instrument is in an area in which I want to do business. These zones, on both intra day time frames and multi day time frames, alert me to those areas.

[KeyToTheCastle]

Zone 4 was breached, zone 1 from my post earlier contained price.

Important distinction in regard to how I use these zone: It's always relative to the back ground condition of the market. The zones are used as entry zones to either initiate or add to positions, used as target zones for exits, or just used as a line in the sand to monitor strength of the order flow in a particular area.

As noted earlier, I am playing the usdcad to the short side. In doing so I am entering trades in resistance zones and scaling out of profit at support zones. As long as the original back ground condition in order flow that got me into the trade is still in effect I am will continuously cycle portions of my position on and off , trading around a core position, until price eventually makes an extended run in my intended direction and heads toward deeper targets. Essentially I am scalping around a core position, in the direction of my core position, until the market breaks in my direction.

[KeyToTheCastle]

ES update. The low today in ES occurred as the high was being made in usdcad and the low was being made in the euro. Correlation across several markets is often a clue that a bigger swing can be at hand.

I was most active in the ES and usdcad today and observed the same order flow conditions setting up in both instruments as price was in areas of interest on both at the same time.

Plus on both instruments we had longer time frame areas of interest coming into play as well. The more conditions I have setting up the higher the probability and quality of the opportunity at hand.

[jedigeneral]

Thanks for the thread. I have been reading along but wanted to second Ricky's question. You are explaining what to do with these zones but... how do you pick them?

TIA

[KeyToTheCastle]

Originally Posted by jedigeneral »

Thanks for the thread. I have been reading along but wanted to second Ricky's question. You are explaining what to do with these zones but... how do you pick them?

TIA

Hey Jedi..I will follow up on your post a little later...a lot harder time wise to keep up on posting then I realized. As far as Ricky he pm'd me then we wound up communicating further by skype. I will do my best to keep up here as best I can but I'm finding it hard to even post charts real time like I planned on. Will post ES update in a bit.

[KeyToTheCastle]

Current ES view of catch zones. We are already in the Current support zone but it is still a valid zone until completely breached. Remember...I use these zones in the direction of my bias. If I am bullish...I am using support zones to enter and resistance zones to scale out profit and vice versa. If I don't have a bias I'm use them to monitor market action. No shame in being flat...flat is a position too. There is always an opportunity setting up somewhere...no need to force anything in a market where I don't have a bias.

[KeyToTheCastle]

I know I dropped the ball on keeping up with posting charts but there just never seems to be enough hours in the day. Between trading and other business ventures I often find myself behind on my to - do list. I'm going to give it another shot. My goal is to post charts in a timely fashion, if not ahead of time, at least very close to real time. Maybe even morph into some kind of daily morning preview of the day. We'll see, but for now there are multiple opportunities setting up across different markets today. Here are a couple of which I am actively trading right now. I'll post now and comment more later. Both of these views are on my longer time frame....the "background view"

chart 1 usd/cad coming into a long catch zone

chart 2 aud/usd coming into a short catch zone