Volume

This day went quite nice with my trading. I was reading about the influence of Volume on trading futures in Traders by Alexander Schwarz. He studied various trade entries by two price patterns in combination with volume on the FDAX. His conclusion was that in the this future market volume didnot matter much or is at least problematic.
It is the price that counts, not volume.

I have two comments on this. Years ago I was discussing this with other traders. I wasnot trading for long then but I had somehow the idea that volume could not be of my interest for my trading. Basically because I had the feeling that when entering a trade, volume did not determine my trade to be a loser or a winner. Prices move with or without big volume.

The second thought about this that volume does counts when you take the level II into consideration. Read about level II here.

daytrading
FDAX

Recognition

A true and calm day. In a way the markets just sideways and testing the year high of yesterday. The DAX for most of the day without momentum. This morning I "saw" where would go long. It is just about recognition, you could say in a glimpse. The level playing an imporant role the rest of the day. I am glad I traded it.

The rest of the day I didnot trade but read some articles, this one being very interesting about chartpatterns from Linda Raschke. It meanly stresses that "old" fashioned trading style is not out dated at all. Important levels, divergence outbreak levels, chart patterns and so on.

In the last hours of the FDAX regaining some momentum to close near high.

daytrading
FDAX

Four trades

Today was an incredible day. The FDAX already at its high of the year and rising again today. I performed 4 trades today, an amount which I dont like at all. I like days with one or two trades. The first trade was wrong and I knew it because it was just done without proper preparation. I mean it was done without the data of the two days before so I lacked important levels of restistance and support.
Sometimes when you know a trade is wrong you can turn your direction...sometimes. It went okay for today with 10 points gain.
In the afternoon my third trade was a loser too. I reckon with myself that decisions to take a trade depend more and more on intraday patterns and levels. The FDAX went down near daylow, ok I lost but the decision was good.
After data release in the states markets again pushing higher beating the 4500 level. I went long with it which was okay but due to slippage my price was optimal. It could easily been a 10 points gain but as I was impatient and got out too early. I was not believing what I saw: a very stong uptrend which now lasts for weeks. I also believe that staying in my position becomes more difficult when it is the third or fourh trade of the day. Somehow being afraid too lose that trade. Of course every trade must be seen without looking to past results but of course this is not allways easy done.

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