There is a substantial risk of loss associated with trading Derivatives . Losses can and will occur. My methods will not ensure profits

Monday, January 30, 2012


1.Market gaps down to LOPD, If LOPD holds market may try to close the gap. Fails to go above the first doji bar and drifts down.Forms a minor DB goes up and tests the HOD.

2.This can also be considered as a bear flag formation after a gap down.The second attempt to go up also fails. Here one can safely short with a very small risk.

3.Market breaks down and pull backs to test the breakout point. A two legged pull back gets rejected rapidly.A shorting area. But very difficult to enter as rejection was very fast.

4.Market breaks down and forms a bottom. Second attempt of the low gives a counter trend BOF trade.This move goes above the range resistance and fails. A scratch trade long.

5.A very good opportunity to short with the trend reversing the earlier long trade.

Note: Trades are on 3 minute charts. I trade the naked charts. I find even the grid lines as distraction .

Lesson: Trade with the trend. When the bias is down sell the highs. TST and BOF of range highs and retracement highs

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