filling the gaps

Take a look at the next 30 min charts and see how the gaps have been filled thoughout the day


This is SIF2



this is sif2_iun

The four phases of entry

1. Market selection
- liquidity
- newness of the market
- market makers and trading rules
- volatility
- capitalization
- markets and trading criteria ( how well does the market follow your trading criteria)
- market independence

2. Market direction

3. Setup condition
- a window of opportunity
- fundamental conditions
- seasonal conditions
- any other significant criteria.

4. Market timing

Setups

- setups refer to conditions that must occur before other action is taken
- setups represent 10% or less of a trading system

Things to take into account when searching for a setup:
- time filter ( cycles, seasonal data. astrological data etc. )
- price data in sequence
- fundamental data (supply - demand characteristics)
- volume data
- composite data ( i.e. how many stocks are advancing )
- volatility
- business fundamentals (earnings, yield, sales, profit margins)
- management information (

The six components of a succesful trading system

1. The hit rate or the reliability of your system
This rate should express how many times your system was right versus how many times was wrong
2. The relative size of your profits compared with the relative size of your losses.
3. The frequency of your trades or how many times you get the opportunity to trade.

4. Commissions

5. The position sizing
6. Your trading capital

Now from another perspective the components should be:

- setup
- entry signal
- initial stop ( or how to protect your capital )
- profit taking
-position sizing

What kind of trader am I ?

Every book I read tells me that I should know myself, before starting to trade I should know what kind of trader I am from the temporal point of view and also from the fundamental or technical p.o.v.

Can I start a trading career without knowing what kind of trading do I want? I don't think so ! Therefore I will spend some time for researching what kind of trader I am .

As a start - For sure I'm not a position trader, 'cause I like quick profits and I'm not used to waiting too much for them. The only option remaining is : short term trader. But as always things are not so simple: how short should be the term ? Do I like scalping the markets or holding my position for more than one day ?

Scalpers pay too much commisions - I hate this , plus they leave too much of their potential profit on the table.

This is the third update to this post. By eliminating all the possibilities I just realized I am a multi-day trader (at least in the romanian futures market) . I like keeping my trades during 2-4 days and catching as much as possible of the profit.