Intraday Monitoring

[Trader Question]

It is tempting to think that every time a P&L tool is hit that the price is at the "bottom" and now's the time to get in.

D.M.

[pldot]

====that is a common error, because you often see P&L levels hold, you assume that THIS one will hold, but then forget that the strength of the HTP push may be stronger than you are thinking, and thus get creamed. Best practice is to wait for some evidence that your idea is correct.

[Trader Question]

Like today - when we arrived at the 881 level there was (60 min EB 881, 5/1 880.75 - Daily 5/2 881.50 - Weekly EB 880 Monthly 2-3 PLDots back 881.50) but the 60 min Nearbys were still lower than the 60 min bar

before - so "stay short" and now were at 878.50 -I was thinking that an approach something like this would keep you fromjumping in and out eveytime we hit a P&L line

D.M.

[pldot]

===Yes the placement of the 60 min nearbys might have been so and that would be expected but that is not exactly what I mean by monitoring the nearbys... you should be monitoring the flow at the place of the daily nearbys and other significant points... and so at 881 level you look and se the market flow is still clearly down and so you hold short.

====yes, you have to not let your analysis drive the market, but let the market drive the analysis... let reality tell you what the reality is...