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  • 210601 Lab Homework MES Pitch and Combos

     leoni updated 1 week ago 2 Members · 4 Posts
  • Fredrik

    June 1, 2021 at 9:36 pm

    Homework from the foundation lab on June 1st 2021. Fin the pitch and the combos in hte over- and under valued areas of the pitch. One of the instructors will feed back ASAP whether you were live in the lab or not!

  • leoni

    June 3, 2021 at 6:05 am

    Hi Fredrik,

    here is my homework for this week. Pitch setting on MES1! with short combo structures and only one long combo structure.

    MES Pitch setting. Long and short combos for CME_MINI:MES1! by wendi2404 — TradingView

    • Fredrik

      June 3, 2021 at 10:41 pm

      Hi Wendi,

      Great work on the pitch and the structures. The shorting structure at the top of the pitch is bang on, you can see it. It is the same area as on the full ES contract.

      When it comes to the floor of the pitch, firstly, formally the floor should probably be at 4052.25, right on the basing candle on April 6th, but that is an extremely aggressive pitch! There is also an opportunity to put the floor of the pitch on the candle of March 8th which iis more realistic but still aggressive. Where your floor is, is quite conservative but none the less realistic, because when this market rolls over, it will go far and very quickly!

      Concerning your areas to go long at the undervalued areas of the pitch, the very top one has been invalidated as price has gone through it, not only once, but twice, so this trae is no longer current. Remember what we discussed in the lab, that the view from current price to where the trade is has to be clear, no price action can be below the stop because that will invalidate the area as price has shown that it can break through it. The second area at 3257, I can completely see what you are looking at to find it and there are some issues with this area on the 4h chart. When you look at it, it’s a Drop, Base, Rally, Base (so far, so good), Drop, Base, Rally, so on the 4h chart it is not clear. As I said, I can completely see what you are looking at, and the second drop doesn’t take out the low of the first one, but it just isn’t quite as clear as we like to see it if that makes sense? There is also a wick from September 25th that pierces through it and invalidates it. Remember, a wick can pierce through the floor or ceiling of the PICTH without invalidating it, as long as the candle closes within. A proposed trading area however is invalidated as soon as price has traded outside it as if you had taken that trade at that time, you would have been stopped out.

      Your lowest area unfortunately suffers the same fate, the wicks on the days immediately after your area set-up, have pierced through it, thereby invalidating it. There is a nice area down there though, with an entry long at 3217 and a stop at 3191 from July 24th to 27th, can you see that on the 4h chart?

      Hope that helps to guide you a little bit and we’ll go through the chart in class on Tuesday to suss out any issues!

      Good job overall, you are making great progress and you absolutely nailed the top of the pitch and the shorting area! That trade today on the micro contract delivered $250 profit for a $70 risk having triggered the entry on Tuesday!

      Any further questions, ping them in and I’ll give you feedback as quick as I can!

  • leoni

    June 6, 2021 at 6:09 pm

    Thank you for your feedback Fredrick, it was very helpful. I think the dots finally connected for me during the last Lab Session. I can totally see the pitch floor now at 4052.25 not so easy for me to identify structure around the 8th March.

    See you at the Lab session Tuesday.

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