Wednesday, March 14, 2007

ER2 redux

Taking a second look at today's chart on the Russell 2000 Futures.

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The above is a 15-min chart of ER2, but with the TTM Trending Indicator paintbars applied to the chart. I got the TTM Trending Indicator from Boogster's blog. The 3 trendlines are 5,9,20bar EMA's. At the very bottom is the RSI(3) indicator. Looking at this chart has given me some ideas on how to play ER2. Unfortunately, they will require patience, which of course is not my strong point.
Most of today's bad trading decisions in ER2 came from not first answering the question "Where will my stop loss point be if I am wrong?" before I even consider getting into the trade.
Seems like I have a recurring problem of a short memory, and I am not sure of the psychology explanation behind that.

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