Yesterday I received a series of follow up questions regarding what now appears to have been yet another prescient tweet this time depicting a bullish divergence on the Zero. If you are new here and are unfamiliar with the Zero indicator then I recommend that you point your browser to the introduction, the tutorial, and most importantly the video section where you can enjoy dozens of recaps of past E-Mini trading sessions.
In case you missed it last evening, check out my ‘Ultimate Guide On Raw Edge Discovery‘ which I hope you will find informative if you are considering to build your own trading systems or even steal one from someone else. Now if you hunger for setups please do not despair as I have posted some juicy entry candidates in the subscriber section below (if in doubt you know what to do). But first let’s look at a few charts on the futures and forex side as this is a good time to cover this week’s live tape reading course.
Earlier today the GoldGerb asked me how to put together a scatter plot for raw edge discovery as introduced to you by Scott during my Tenerife adventure. Since my gums and I are feeling a bit better than anticipated I thought I may as well condense some of the exchanges I’ve had with him into a dedicated post. It is my belief that raw edge discovery (or RED as it shall be known henceforth) is an integral but much neglected aspect of system development.
I actually meant to focus on the tape at hand today and get back into the swing of things on the trading front. However since my main Internet connection just went bust two hours ago I decided to use my connective idle time as an opportunity to talk about an issue many of you may have been battling with at some point or the other: Whether or not to scale into positions. Does it work? Should you do it? The quick answer (and you knew this was coming): well, it depends.