They say a picture is worth a thousand words.

Figure 1 E-Mini 500 Ticks Per Bar – 6-2-2014

I have several indicators that tell me when to trade and when not to trade. But one glance at the above chart should tell a trader why my SRVs are so important. The two horizontal lines were placed on the chart Sunday afternoon. The day before this trading day.

If my trading philosophy was based on SRVs alone (of course it is not) this could have been a pretty good day by selling when price broke the top horizontal line going down – then buying when price hit the bottom horizontal line. Buying to go long when price again broke the bottom line heading up – selling when price hits the top horizontal line.

Finally, along with my other indicators, sitting on the sidelines as price struggles to move away from the top SRV in either direction.

It is so much more fun to trade when I follow my system and do not try to outsmart the market.


Leave a Reply

Your email address will not be published. Required fields are marked *

Comments Protected by WP-SpamShield Spam Blocker

See the Music of the Market

The unique trading method that is Trading Between the Lines